The Tokyo Metropolitan Police Department has arrested Takanori Kikuchi, a former executive at GungHo Online Entertainment, following allegations of breach of trust. Kikuchi, who previously led the company's systems division, has reportedly confessed to the charges. The arrest follows an internal investigation that uncovered a long-term scheme involving the embezzlement of approximately 246 million yen, or roughly $1.675 million USD.
According to findings, the suspect misappropriated funds by generating fictitious business orders through a third-party work-matching service. Additionally, about 100 million yen was lost through improper outsourcing fees paid to a business partner for services that were never actually rendered. GungHo filed criminal charges against the former employee in October 2025, though the company withheld public disclosure at the time to avoid compromising the ongoing police investigation.
This legal development follows a period of significant internal restructuring for the developer behind Puzzle & Dragons and Ninjala. On February 1, 2026, long-time CEO Kazuki Morishita stepped down, with former CFO Kazuya Sakai assuming the roles of CEO and Representative Director. GungHo has stated that it is currently implementing stricter compliance training and internal audit measures to prevent future financial misconduct.
