Nine NetEase employees, part of one of China’s leading game development companies that also collaborates with Activision Blizzard, have been accused, fired, and ultimately arrested for money laundering and corruption. Among those arrested are two executives from the company: the general manager of NetEase Games Xiang Lang and the head of eSports Jin Yuchen.
According to reports from Leifeng.com and Bloomberg Law, the case is believed to have an impact on 28 suppliers of the mega-corporation with the alleged misconduct valued at around one billion yuan, approximately 107.5 million pounds, or 139.3 million dollars. This is the second internal anti-corruption investigation conducted by NetEase since September 2023. A company spokesperson stated that the police are investigating the allegations of corruption, but did not provide further details at this time.
Here’s an overview of the company:
NetEase was first founded in 1997 by Ding Lei, initially as a technology company that later expanded into other initiatives, including video games. The company’s journey into gaming began in 2020 when it created a games division, acquiring developers like Grasshopper Manufacture and hiring prominent industry veterans such as former Sega employees Toshihiro Nagoshi and Daisuke Sato. Additional studios, like Spliced, were also launched in 2023 by former Marvelous vice president Toshinori Aoki and BlazBlue creator Toshimichi Mori. Amid its rapid growth, several NetEase employees have recently found themselves involved in an investigation, including two senior members of the company.
Stay tuned for more updates.