By Sagar V. Mankar 
Multiple employees from NetEase Games, the studio known for developing games like Marvel Rivals and Destiny: Rising, have been detained in Hangzhou, China.
According to reports from the Chinese media outlet Leiphone, translated by VICE, this arrest includes multiple high-ranking officials, notably NetEase’s General Manager, Xiang Lang. The detentions came after an internal investigation conducted by NetEase’s anti-corruption department.
An internal email from NetEase reportedly confirmed that nine employees have been subjected to criminal enforcement actions, most of whom are from the marketing department. This suggests that the investigation may be targeting marketing-related activities, possibly linked to financial misconduct or money laundering.
The Leiphone report highlighted that the case involves a contract value estimated at around 2 billion yuan, which is approximately $280 million USD. Furthermore, it is reported that the alleged misconduct has had a significant impact on approximately 28 suppliers associated with NetEase.
Reports suggest that multiple employees from the marketing department under Xiang Lang supervision are responsible for purchasing traffic for several of NetEase’s major products. According to Leiphone, many of these staff members, including Xiang Lang, have been removed from NetEase’s internal system, suggesting they may no longer hold their positions within the company.
Following the news of the internal probe, NetEase’s shares saw a notable decline, dropping nearly 6% to $76.36 per share. This marks the lowest stock price the company has experienced since September 10, reflecting growing concerns among investors about the potential fallout from this scandal.
In response to the ongoing investigation and circulating rumors, NetEase’s public relations team has reiterated that the company is committed to its anti-corruption efforts. However, they have chosen not to disclose detailed information at this time, citing the ongoing nature of the investigation. The company has firmly denied any allegations of money laundering, labeling them as groundless, and has reported the matter to the authorities to curb the spread of misinformation..
NetEase is one of the largest internet and gaming companies in China, and this investigation could have substantial implications for its operations and reputation. As the situation develops, the company will likely face increased scrutiny from both the public and investors, making transparency and effective communication crucial in the coming weeks.