Founder of Chinese streaming platform arrested for operating an illegal casino

Founder and president popular Chinese video game streaming platform Douyu, Chen Shaojie, was arrested last week for operating a casino, the latest in a series of detentions amid crackdown.

In recent days there had been speculation about Chen’s possible arrest after some media reports that he had lost contact with him in October, but it was not until Tuesday when his company confirmed this in a statement released on its website, as cited in a report by news agency, Noticias Financieras.

The document notes that the executive was detained in Chengdu (center) last Thursday and that Douyu “has not received any official notice of the investigation against MChen or the reasons for his detention”.

However, the Chengdu Police indicated today on the social network Weibo – Chinese equivalent of X, censored in the Asian country – that Chen’s arrest occurred for “opening a casino” and that it is still investigating the case.

The local press had already speculated that the arrest was related to gambling, illegal in China except in the semi-autonomous region of Macau, considered the ‘Las Vegas of Asia’.

Douyu warned that the arrest and possible prosecution of Chen could “have a negative impact on the company’s reputation, business and results of operations,” according to the report.

Shares of the company, which is listed on the U.S. Nasdaq, fell more than 5.7% between Monday and Tuesday.

In recent months, Chinese authorities have arrested numerous executives of major firms in the country, focusing especially on the financial sector, where the Communist Party (CCP) promised earlier this year to “eliminate” corruption. Staff Reporter