Gungho Online Entertainment Former GungHo Employee Arrested for Embezzlement

TOKYO, Jul 08 (Pulse News Wire) – GungHo Online Entertainment,Inc. (3765.T) announced that a former employee was arrested on July 08, 2026, for embezzlement involving fraudulent business orders over several years.

The individual had previously been dismissed for misconduct and was charged with misappropriating company funds through fictitious transactions. The company disclosed that initial investigations revealed the extent of the fraud shortly after the employee's dismissal. Despite filing charges being accepted on August 14, 2025, the firm withheld public disclosure due to potential interference with ongoing police investigations.

GungHo extends sincere apologies to shareholders, investors, and stakeholders for any concern and inconvenience caused. In response to this incident, GungHo has committed to fully cooperating with law enforcement agencies throughout their investigation. Additionally, the company plans to enhance internal compliance training, improve procurement processes with external vendors, and strengthen internal audit monitoring to prevent future occurrences.