Gaming Giant CEO Arrested: In a surprising turn of events, Chen Shaojie, the chairman and CEO of DouYu, a prominent Chinese video game live-streaming platform, has been arrested in Chengdu. DouYu disclosed this information in a regulatory filing, indicating that they were only made aware of the arrest on Monday, although it occurred around November 16. The company emphasized that it hasn’t received official notice of the investigation or the reasons behind Chen’s arrest, cautioning that his ongoing detention and any subsequent legal proceedings could significantly impact its business.
According to a statement by the Chengdu police posted on social media, a 39-year-old man named Chen was arrested on suspicion of running a casino. State-run news agency Xinhua cited the police statement as confirmation of the DouYu executive’s arrest. The news comes on the heels of reports, about two weeks ago, stating that Chen had become unreachable, and there were unconfirmed investigations into his activities.
Chen’s disappearance follows an on-site inspection of DouYu by the Cyberspace Administration of China five months ago, citing “serious” problems related to the platform, including alleged pornography and “vulgar” content. DouYu, meaning “fighting fish” in Chinese, has also faced scrutiny for allegedly hosting online gambling, which is illegal in mainland China.
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This isn’t the first instance of legal trouble for the platform. In December of last year, three individuals associated with DouYu were sentenced to up to six years in prison for running an online lottery that involved users placing bets, generating significant revenue. The case was described as the first gambling case involving a live-streaming platform handled directly under the orders of the Ministry of Public Security.
DouYu stated in its latest filing that it is committed to complying with regulations and is operating normally while working on contingency plans in response to Chen’s arrest. However, the situation raises concerns about the future of the platform, adding to the broader trend of regulatory scrutiny impacting business leaders and companies in China.
Chen’s arrest underscores the challenges faced by executives in China, with more than a dozen leaders from various industries facing investigations, detention, or going missing this year. The regulatory landscape, coupled with the government’s increasing scrutiny, has created a chilling effect on China’s business community, impacting entrepreneurs and companies alike. Chen, who founded DouYu, now faces legal uncertainties, leaving the platform’s future in question amid a rapidly changing and challenging environment.