Shukhrat Ibragimov, the newly appointed CEO of Eurasian Resources Group (ERG), is facing growing scrutiny over a business track littered with failed high-profile investments.
Despite being praised for his “unique skillset” and vision for the future of ERG, Ibragimov’s track record in several ventures has raised concerns about his ability to lead one of Kazakhstan’s largest natural resources companies effectively. Appointed CEO earlier this year, Ibragimov, the son of ERG’s late founder Alijan Ibragimov, was welcomed by many as a capable leader with a passion for his father’s legacy.
Yet key backers, including Kazakhstan’s government, are understood to be rethinking Ibragimov’s elevation to CEO amid a history of ventures marred by financial losses, failed projects and regulatory issues.
Ibragimov’s business career has been punctuated by a number of unsuccessful ventures, spanning industries as varied as food production, space technology, and cryptocurrency. Despite significant financial backing and initial public excitement, many of these companies have faced significant challenges.
One of the most prominent examples of Ibragimov’s troubled investments is his involvement in Borealis Foods, a Canadian noodle company in which he invested $23 million. Initially backed by Kazakh oligarch Kenes Rakishev, Borealis Foods sought to grow rapidly after a merger with Oxus Acquisition, a shell company.
However, the business soon ran into difficulties, losing investor confidence and posting large losses. Despite the high-profile endorsement of celebrity chef Gordon Ramsay, Borealis Foods continued to falter, with its stock value plummeting. By the first quarter of 2024, the company posted a net loss of $8.4 million, and its financial situation grew precarious. As of June 2024, Borealis was struggling to maintain operations, facing a ballooning debt load and declining revenue. The company issued a warning about its ability to continue as a going concern unless significant new funding was secured.
In December 2019, Ibragimov launched Eurasian Space Ventures (ESV) with the goal of advancing space technology and launch services. The company initially generated excitement through partnerships with Kazakhstan’s national space agency, Kazakhstan Gharysh Sapary (KGS), and a joint venture with SpaceChain, a Singapore-based blockchain satellite project. However, the venture quickly lost momentum.
Although ESV made headlines for a satellite launch aboard a SpaceX Falcon 9 rocket in 2021, subsequent projects either failed to materialize or were quietly shelved. Efforts to promote a blockchain-based satellite network and a satellite broadcast of the Quran were both abandoned. By 2022, many of ESV’s partnerships had dissolved or remained stagnant, and the company failed to report any revenue or progress in its operations. ESV’s official website has been inactive since March 2023, and it has not reported any significant developments or filed for necessary licenses to operate in Kazakhstan’s space industry.
Ibragimov also founded Biteeu, a cryptocurrency exchange platform, in 2019. The company was marketed as a fully licensed and secure exchange, but it soon faced significant operational issues. Corporate filings revealed discrepancies regarding the platform’s ownership and leadership. Ibragimov was listed as a co-owner in media reports, but official records indicated that Talgat Dossanov, not Ibragimov, was the registered owner and director.
Biteeu’s struggles were compounded by regulatory challenges. The company failed to submit its annual report for 2024, attracting the attention of Estonian regulators. Despite boasting high-profile claims about its success, Biteeu’s impact in the cryptocurrency space has been minimal. Its website and mobile app are no longer active, and its partnership with the Bittrex exchange ended in 2024 after Bittrex filed for bankruptcy. Regulatory concerns and limited operational progress have left Biteeu on the verge of collapse.
In addition to his high-profile forays into industries like food production, space technology, and cryptocurrency, Ibragimov has also been involved in the entertainment and esports sectors, notably through SPRK Music and Galaxy Racer. These ventures, while ambitious, have also faced challenges that have affected their growth and sustainability.
SPRK Music, launched with the goal of creating a platform to support emerging artists, was envisioned as a service to help up-and-coming musicians gain exposure and build careers. However, despite significant investment and ambitious promises, SPRK Music has had difficulty attracting the user base necessary for sustainable growth.
The platform’s performance has been underwhelming. Reports indicate that SPRK Music has failed to gain significant traction among users or within the highly competitive digital music market. Despite a promising launch, SPRK Music’s financial health paints a picture of a company struggling to stay afloat. The most recent financial report for Sprkle Music Ltd., as of December 2022, shows liabilities exceeding £931,966 – up from £638,548 in 2021.
Moreover, the platform’s impact has been limited. With only 10,000 downloads on Google Play, SPRK has failed to make a significant dent in the music app space, which is dominated by giants like SoundCloud, TikTok, and Spotify, all of which boast millions of users.
SPRK’s YouTube channel, launched in May 2021, has accumulated a meagre 10 subscribers, and its videos—each lasting under one minute—fail to generate any significant viewer engagement. This lack of attention and engagement points to broader issues in the platform’s ability to attract both users and content creators.
Ibragimov’s involvement in esports through Galaxy Racer represented an effort to capitalize on the rapid growth of competitive gaming. Initially, Galaxy Racer garnered attention for its bold ambitions and strategic partnerships, including a sponsorship deal with La Liga’s esports division, one of the most prominent football leagues globally. This move was intended to position Galaxy Racer as a leading player in the expanding esports market, which was projected to continue growing in popularity and investment.
Despite early optimism, Galaxy Racer has faced numerous challenges. Although the company initially attracted significant investment, internal turmoil and operational difficulties soon became apparent. Employees reported delays in receiving payments, and there were several rounds of layoffs as the company struggled with its financial health. These issues were compounded by difficulties in executing its esports events and partnerships, which hindered its ability to fulfil expectations. In 2023, Galaxy Racer’s operations in North America were paused, and by early 2024, the company had closed its headquarters in Dubai.
CEO Paul Roy reportedly fled the UAE amid mounting legal concerns. In a move that shocked many, Galaxy Racer then redirected its efforts towards launching a football streaming service in India under a new entity, Celestial Media & Entertainment Private Limited. Despite still owing millions to employees, vendors, and esports teams, Galaxy Racer seemed intent on rebranding itself as a major player in the media and entertainment space. As of mid-2024, Galaxy Racer still owed between $20-30 million in outstanding payments to various stakeholders, including esports teams, content creators, and vendors.
