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Chinese authorities have arrested two NetEase executives and nine employees on charges of money laundering. The alleged scheme involved laundering up to $139 million through contracts with approximately 30 different business partners. NetEase has responded by firing the nine employees implicated and launching an internal investigation, marking their second such inquiry since September 2023. One executive, Xiang Liang, remains in custody, facing further investigation into allegations of money laundering and bribery.
The arrests highlight a growing concern about corruption within China's large tech companies. NetEase's gaming sector is specifically under suspicion, with reports suggesting that the money laundering involved contracts related to several of their games. This incident follows a similar case at Tencent, where a manager resigned amid allegations of corruption, indicating a broader industry problem. Some NetEase employees have even reported having their computer screensavers changed to compliance advertisements in the wake of the arrests.
This ongoing investigation underscores the challenges faced by Chinese internet giants in combating internal corruption and maintaining financial integrity. The scale of the alleged laundering, the number of employees involved, and the potential connections to various business partners suggest a complex web of financial irregularities. While the impact on NetEase’s upcoming game, Marvel Rivals, remains unclear at this time, the incident serves as a stark reminder of the importance of robust compliance measures within large organizations.
ImgSrc: www.siliconera.
References :
The arrests highlight a growing concern about corruption within China's large tech companies. NetEase's gaming sector is specifically under suspicion, with reports suggesting that the money laundering involved contracts related to several of their games. This incident follows a similar case at Tencent, where a manager resigned amid allegations of corruption, indicating a broader industry problem. Some NetEase employees have even reported having their computer screensavers changed to compliance advertisements in the wake of the arrests.
This ongoing investigation underscores the challenges faced by Chinese internet giants in combating internal corruption and maintaining financial integrity. The scale of the alleged laundering, the number of employees involved, and the potential connections to various business partners suggest a complex web of financial irregularities. While the impact on NetEase’s upcoming game, Marvel Rivals, remains unclear at this time, the incident serves as a stark reminder of the importance of robust compliance measures within large organizations.
ImgSrc: www.siliconera.
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References :
- news.futunn.com: This Futunn article offers additional context about the alleged corruption within NetEase's gaming sector.
- www.dexerto.com: This Dexerto article highlights a specific case involving the alleged money laundering activities of employees working on the Marvel Rivals game.
- www.siliconera.com: Two NetEase executives and nine employees were arrested by Chinese law enforcement for money laundering. They allegedly laundered up to $139 million through contracts with several companies.
- www.leiphone.com: The article provides more information on the investigation of NetEase employees for alleged corruption.
Classification:
- HashTags: #NetEase #MoneyLaundering #Cybercrime
- Company: NetEase
- Target: NetEase
- Product: Games
- Type: DataBreach
- Severity: Major