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NetEase Games hit with Money Laundering scandal as multiple high-rank employees face arrest

High level scam!

Story Highlights
  • NetEase Games' General Manager, Xiang Lang, along with several high-ranking colleagues, was detained in Hangzhou.
  • Reports reveal the investigation was set up as a trap.
  • The case involves a contract worth around a mammoth 2 billion yuan.

China-based gaming giant NetEase is caught up in a major money laundering scandal, with several high-ranking employees now under arrest by authorities in Hangzhou, China. Among those detained is Xiang Lang, the General Manager in charge of marketing at NetEase Games.

Reports reveal the investigation was set up as a trap with a relocation of the weekly meeting

The General Manager was detained by the company’s anti-corruption unit, with local police now also involved, according to sources by Leifeng. Allegedly, the case involves a contract worth around a mammoth 2 billion yuan (approx. $0.28 billion) with the actual funds involved estimated between 800 million and 1 billion yuan.

NetEase Dokific, NetEase Games US Studio, NetEase Games Jar of Sparks, NetEase Star Painters
Image via NetEase Games

Interestingly, the investigation was set up in a strategic way, described by the report as “lured the enemy into a trap”. The weekly marketing department meeting, usually held in Guangzhou, was relocated to Hangzhou, China. Upon their arrival to the city, it was where authorities detained the NetEase Games GM and other colleagues for the money laundering investigation.

A similar incident happened back in July 2023, where players of the popular gacha RPG game Blue Archive developed by South Korean developers Nexon successfully Game Rating and Administration Committee (GRAC) and exposed alleged fraud occurring behind the scenes. In the same period, Sonic co-creator Yuji Naka was also put behind bars for insider trading during his time at Square Enix.

Yuji Naka insider trading
Image via Yuji Naka Twitter

In addition to Xiang Lang, several employees involved in managing traffic acquisition for NetEaseGames’ top products are also reportedly under investigation. As of now, their profiles appear to have been removed from NetEase’s internal system. Some of those detained have reportedly been released but attempts to reach Xiang Lang for comments have been unsuccessful.

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