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Chinese authorities have arrested nine NetEase employees on bribery and money laundering charges involving up to $279 million in suspicious contracts, according to reports from Bloomberg Law and Chinese tech site Leifeng. The arrests include General Manager Xiang Lang and esports division head Jin Yuchen, marking the company's second corruption investigation in fourteen months.
NetEase started as a technology company in 1997 before expanding into gaming in 2020. The company has partnered with multiple Western publishers and opened several internal development studios, including Grasshopper Manufacture in Japan and Spliced Studios, founded by former Sega executives Toshihiro Nagoshi and Daisuke Sato.
The investigation involves purchasing contracts with 28 suppliers totaling between $140 and $279 million USD. NetEase said it has terminated the employment of all nine arrested staff members and removed their system access.
This investigation follows a previous anti-corruption probe in September 2023. Chinese regulators have intensified scrutiny of gaming companies' financial practices since 2023, focusing on international contracts and supplier relationships. Former employees facing charges could receive substantial prison terms under Chinese anti-corruption laws, which prescribe sentences of up to life imprisonment for large-scale commercial bribery.
Several Western gaming companies maintain active contracts with NetEase, including Blizzard's Diablo Immortal and Bungie's Destiny: Rising mobile projects. Two major NetEase games, Project Mugen and Where Winds Meet, are currently in development and scheduled for worldwide release in 2025. Police investigations are ongoing, with no trial dates set for the accused employees.
