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Former GungHo Executive Takanori Kikuchi Arrested for Alleged Embezzlement

Japanese news outlet Jiji.com reported on Wednesday the Tokyo Metropolitan Police Department's Marunoichi Police arrested former GungHo Online Entertainment executive Takanori Kikuchi under suspicion of breach of trust. He is accused of embezzling company funds while working as the head of the systems division and has admitted to the charges.

GungHo Online Entertainment shared a statement following the arrest on Wednesday, revealing it had filed criminal charges against Kikuchi on October 5, but refrained from announcing the news publicly to avoid potential interference with authorities' investigation. While Jiji.com mentioned the name of the former employee arrested, GungHo Online's statement on Wednesday did not mention the person by name.

GungHo Online announced in August 2025 it had dismissed a former executive-level employee for embezzlement in July of that year. 

The company stated the employee had misappropriated approximately 246 million yen (about US$1.675 million) of company funds by making fictitious business orders to themselves through a work-matching service operated by a third-party company for several years. The employee, acting as the contractor, caused an outflow of about 100 million yen (about US$681,000) by improperly paying outsourcing fees to a business partner, despite no actual business. Following the initial investigation, GungHo formed an internal investigation team by two independent auditors.

The company stated on Wednesday it will continue to implement measures to prevent recurrence, including expanding internal compliance education and training, among other measures.

GungHo's CEO, President, and Representative Director Kazuki Morishita stepped down from his positions on February 1. CFO, Director, and Executive General Manager of Finance Accounting Division Kazuya Sakai became the new CEO, President, and Representative Director on the same day. 

GungHo Online Entertainment is known for its puzzle game Puzzle & Dragons. The company hosts the Japanese server of the MMORPG Ragnarok Online. GungHo has also worked on the TEPPEN, Ninjala, and Disney Pixel RPG games.

Sources: GungHo Online, Jiji.com via Hachima Kikō