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Video game streamer Douyu confirms CEO’s arrest in China after weeks of speculation about gambling content
- Chinese police say they have arrested a 39-year-old man surnamed Chen, suspected of opening a casino
- The New York-listed live-streaming platform said on Tuesday that founder and CEO Chen Shaojie was arrested
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Ann Caoin Shanghai
Police in Chengdu, the capital of southwest China’s Sichuan province, said on Wednesday they had arrested a 39-year-old man surnamed Chen on suspicion of opening a casino, a day after US-listed video game live-streaming platform Douyu International Holdings confirmed the arrest of its founder and CEO Chen Shaojie.
Local authorities said investigation of the case surrounding the arrested man, whose first name contains the word “jie”, was ongoing. No further details were given.
Douyu, backed by Tencent Holdings, said in a statement on its website on Tuesday that CEO Chen was arrested around last Thursday in Chengdu.
While Douyu also said operations remain normal, it warned investors that the ongoing detention and subsequent legal process could have a “material adverse impact” on the company’s reputation and operations in the future.
The board and management are working on contingency plans in response to Chen’s arrest and related investigations, it added.
Confirmation of the arrest comes three weeks after Chinese media reported that Chen had been held “incommunicado” by authorities since October, fanning widespread speculation that it was related to several gambling-related live-streaming sessions on the platform.
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