Chinese game-streaming platform Douyo confirmed Tuesday that its founder, Chen Shaojie, was arrested by Chinese police last week as Beijing’s latest crackdown on high-profile figures gains momentum.
According to a statement published on the DouYu International Holdings Ltd corporate website, Chen – the company’s CEO and Chairman – was arrested by Chengdu police “on or about” 16 November 2023 although “the company has not received any official notice of the investigation against Mr Chen or the reasons for Mr Chen’s apparent arrest.”
Multiple media outlets reported earlier this month that Chen had gone missing and was incommunicado, with The Financial Times citing sources suggesting his disappearance was linked to a probe by authorities into suspected gambling and pornography on Douyu’s platform.
Backed by Chinese tech giant Tencent, which holds a 38% stake, Douyu is one of China’s largest streaming services, similar to the Amazon-owned Twitch, and was valued at US$4 billion when it went public in 2019. However, the company’s market value has plummeted to around US$300 million amid Beijing’s latest tech crackdown.
The arrest of Chen comes as China also embarks on another anti-graft campaign, with Bloomberg recently reporting probes into 41 senior officials since January – matching the number from the famous 2014 probe that heavily impacted the Macau gaming market by forcing Chinese VIPs to exhibit greater caution.
Also unsighted since February is the Chairman and CEO of investment bank China Renaissance, Bao Fan, who has allegedly been detained by the Central Commission for Discipline Inspection (CCDI), China’s top anti-graft body, on suspicion of corporate bribery.
In Tuesday’s statement, Daoyu said it “cannot comment on the nature or expected timeline of subsequent legal proceedings, if any, that may follow.
“Mr Chen’s ongoing detention and any subsequent related legal proceedings and enforcement actions against the parties involved may have a material adverse impact on the company’s reputation, business and results of operations.
“The Company maintains normal operation of its business and remains committed to upholding regulatory compliance on its platform. The Board and management will supervise the operations of the Company and work on contingency plans in response to Mr Chen’s arrest and related investigations.”
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