NetEase Games executives reportedly arrested on money laundering charges amid Marvel Rivals launch

NetEase Games executives arrested in a $111-$140 million money laundering case, affecting Marvel Rivals launch plans.

According to a report from Leifeng and shared by Vice, multiple NetEase Games executives have been detained on charges of alleged money laundering. The Chinese gaming giant, which developed Marvel Rivals, saw its general manager Xiang Liang and other high-ranking employees arrested after a covert internal investigation. The company, known for its collaborations with Blizzard and other international studios, is now facing scrutiny as it approaches the launch of its highly anticipated game Marvel Rivals.

The investigation reportedly stemmed from an internal “sting operation” by NetEase. Typically based in Guangzhou, the company’s weekly marketing meeting was unexpectedly moved to Hangzhou, where Xiang Liang and his team were detained upon arrival. The suspected laundered amount is estimated between 800 million and 1 billion yuan, equivalent to roughly $111-$140 million. Sources close to the company allege that Xiang Liang’s team may have also manipulated performance metrics by purchasing traffic for NetEase games, although this remains speculative.

The arrests have already impacted NetEase’s market standing, with a 5% drop in stock price (NTES) since the news broke. NetEase has been aggressively expanding into global markets, acquiring studios like Grasshopper Manufacture in 2021 and Quantic Dream in 2022. Despite this growth, the company faced legal setbacks when Riot Games, owned by Tencent, sued NetEase for copyright infringement related to its game HyperFront, which was subsequently shut down.

As NetEase continues its global expansion, the unexpected arrests raise questions about its internal practices and future partnerships, especially with Marvel Rivals set to launch on December 6. NetEase has yet to release a statement addressing the recent events.