Business

Japanese Game Studio GungHo Complains Ex-Executive Embezzled $2.3 Million

Despite a setback involving embezzlement by a former executive, GungHo Online Entertainment leaders are demonstrating integrity by choosing to reduce their own salaries and bonuses, taking partial responsibility for the incident.

Jonathan Dubinski 18 August 2025 · 1 min read

Key takeaways

A former executive at GungHo Online Entertainment is accused of embezzling approximately $2.3 million over several years through fraudulent activities, including retaining company funds through fabricated orders and falsely presenting themselves as the party accepting contracts.
The investigation by GungHo, assisted by auditors and lawyers, uncovered evidence of these fraudulent dealings leading to the executives termination and potential criminal charges.
In response to this incident, GungHos senior management plans to implement salary and bonus reductions as a way of acknowledging partial responsibility for the situation.
The company is considering filing a criminal complaint against the former executive due to their alleged embezzlement and fraudulent activities.

GungHo Accuses Former Executive of Multi-Year Fraud and Embezzlement of $2.3 Million

GungHo Online Entertainment, known for its mobile hit Puzzle & Dragons, has accused a former executive of misappropriating approximately 2.3 million over several years. The company alleges that the former executive, whose employment was terminated for cause, engaged in fraudulent activities, including retaining company funds through fabricated orders. The alleged scheme involved the executive using a service to identify providers and then falsely presenting themselves as the party accepting contracts. This resulted in over 1.67 million siphoned off directly, along with an additional 680,000 paid to a partner for fabricated external work. GungHo initiated an investigation with the assistance of auditors and lawyers, which uncovered evidence of these fraudulent dealings. This investigation led to the executive's termination. The company is now considering filing a criminal complaint. In response to the incident, GungHo's senior management plans to implement salary and bonus reductions, acknowledging partial responsibility for the situation.

In Case You Missed It

For all fans of classic RPGs and newcomers looking to dive into the Trails in the Sky series, Falcom has just released a new trailer for the highly anticipated 3D remake of "Trails in the Sky 1st Chapter" (August 12, 2025). Ahmed Hassan’s latest post delves into what this exciting announcement means for both long-time fans and those who are yet to experience this beloved franchise. Check out Trails in the Sky 1st Chapter Gets New Trailer to see the trailer and learn more about what makes this remake a must-watch event for gaming enthusiasts!