What happened to Talon Esports? The $1 million loan drama, explained

Hannah Marie ZT, Senior Editor

Last Updated: 28/08/2025

Talon Esports hit the headlines for a loan gone wrong, with missing payments and investor drama going public. 

Details about the dispute have gradually surfaced over the past several days. For those not attentively following the paper trail of information, here is an explainer of who is involved and what has been revealed: 

“Hedgedhog” (Bainy Zhang)’s initial online callout

Financial repayment issues rarely unfold dramatically online. 

However, it is not unheard of. In June 2025, ENUK reported on campaign payment disputes centred around game publisher Faraway, which were publicly exposed following public outcry.

Talon Esports’ loan interest repayment issues have reached public attention through leaked DM’s, social media posts, and a disgruntled creditor known online as “hedgedhog.”

On August 25th, X (formerly Twitter) account “hedgedhog,” belonging to Bainy Zhang, posted an aggressively worded message to the esports community. 

The post also included a direct callout tagging the cofounders of Talon Esports, saying “don’t f*** with me,” and “here’s a notice to all your players and employees about your behaviour, the fact you still owe me money and you borrowed from others to repay me.”

What was the Talon Esports loan?

According to the details outlined by Bainy Zhang, the loan was for exactly $1 million USD (~£742,668 GBP) in USDC form. Additional interest was accumulated, amounting to approximately $75,000 USD (~£55,706 GBP). 

A posted screenshot of the Loan Term Sheet shows that the initial loan term was for three weeks, signed on June 25th. The loan fee was listed at 5% per annum. 

Following the initial loan term, an Amended Loan Term Sheet was produced. This granted an additional three-week extension to the payment terms. It was issued on July 17th, the day after the original repayment was due, altering the original loan terms. 

The outstanding principle is listed as maintained at $1 million (in USDC). This means no repayment had been made at this point. In addition, the document clarified that the loan extension term began effective from the Amended Loan Term Sheet on July 17th, ending August 7th. 

Notably, as per the amended agreement, the loan fee rose from 5% to 20% per annum.  

Therefore, the final sum was due on August 7th, having been extended from July 16th with increased fees.

However, a second extension agreement was issued on August 1st. This granted another three weeks for repayment, with a deadline of August 22nd. Despite the first extension, the outstanding amount remained at $ 1 million. 

In this Second Amended Loan Term Sheet, the loan fee has been adjusted from 20% per annum to 2.5% per week.

Bainy Zhang posted on X about the non-payment of $75,000 interest three days after the August 22nd deadline had passed. He states that the $1 million was repaid on the deadline. This outstanding interest was specifically from the final loan amendment. 

How have Talon Esports responded?

Following Bainy Zhang’s initial August 25th callout, Talon Esports CEO, Sean Zhang, responded online. This response came approximately three hours after Bainy Zhang’s post. 

In his words, the $75,000 interest was missing due to a “miscommunication with the accounts team,” who “didn’t take into account the interest” when they repaid the initial $1 million. 

Speculation over the loan also prompted a response from Talon Esports’ official social media channels. Commenters online expressed doubt about the organisation’s financial stability. These speculations were fuelled by screenshots posted by Bainy Zhang that appeared to show the organisation using the loan to pay their players. 

According to Talon Esports, their “operations remain stable.” 

They also stated that “all player salaries have been paid in full.” However, they did admit outstanding payments to former players. Talon Esports committed to paying former players by September 6th. Outstanding non-salary payments are also owed to current players, which they commit to paying by September 30th.

Is the loan dispute resolved?

At 12.50 pm on August 28th, Bainy Zhang confirmed that a Cr transaction of $74,969 USD was received following the public spat. Sean Zhang supports this in posts online.

Although the financial loan is now settled, the dispute casts doubt over the future of Talon Esports. 

The organisation has now publicly admitted to having outstanding player payments. Screenshots posted by Bainy Zhang also suggest insecurity over the source of Talon’s funding.

Significant effort from Talon Esports will be required to repair its public image.

Hannah Marie ZT, Senior Editor

Hannah is a journalist specialising in the esports, gaming, and technology sectors. Working for outlets such as Dot Esports, Esports Insider, and of course ENUK, she has developed a love for wider esports, Apex Legends, and advocating for women's esports initiatives. You may have seen her at various esports and gaming events, including ALGS LANs, ESI London, EGX, and watch parties.

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