Yuji Naka has reportedly been arrested as part of the Square Enix insider trading investigation

Former Sonic Team head and Sonic the Hedgehog programmer Yuji Naka has reportedly been arrested in relation to the ongoing Square Enix insider trading investigation.

Japanese information website FNN Prime Online experiences that Naka is now the newest suspect in a case concerning insider trading surrounding a brand new Dragon Quest sport.

On Thursday, two former Square Enix workers had been arrested in Tokyo as part of a suspected insider trading scheme.

Taisuke Sazaki and Fumiaki Suzuki had been arrested for buying inventory in Japanese developer Aiming, shortly earlier than it was introduced that it was engaged on a brand new Dragon Quest sport.

The two reportedly bought round ¥47 million ($336,300) of inventory in Aiming, simply earlier than it was publicly confirmed that it was growing the cell title Dragon Quest Tact.

Now, in keeping with FNN, the Tokyo District Public Prosecutors’ Office’s Special Investigation Department has additionally arrested Naka for the same potential infringement.

It’s alleged that earlier than Dragon Quest Tact was introduced, Naka – who was engaged on Balan Wonderworld for Square Enix at the time – bought roughly 10,000 shares of Aiming inventory for round ¥2.8 million ($20,000).

By buying the inventory earlier than the announcement, the perception is that each one three suspects might have knowingly used insider data with a purpose to later promote the inventory once more when its worth elevated.

Following the arrests of the authentic two suspects, Square Enix made a press release confirming that the pair had been former workers and stating that it was working with authorities on the investigation.

“Today, some media shops reported that the former workers of Square Enix had been below investigation for suspected insider trading,” the assertion reads.

“We have been absolutely cooperating with requests from the Securities and Exchange Surveillance Commission. As the investigation by the Tokyo District Public Prosecutors Office is underway, we’ll proceed to totally cooperate with the investigation.

“We deeply remorse the nice concern this has brought about to all involved. We have handled this incident strictly, together with inside disciplinary actions taken in opposition to the suspected workers.”

Square Enix is ​​Yuji Naka’s former employer, the place he helmed the vital failure Balan Wonderland earlier than his departure from the firm final 12 months.

However, growth on Balan went so poorly that Naka would later sue Square Enix, claiming he was faraway from the venture six months earlier than launch.

Naka first spoke out in opposition to Balan Wonderworld’s growth in April, in an explosive collection of tweets.

“Game creators are supposed to enhance their video games till the very finish, and I imagine that it’s fallacious to forestall them from finishing up this objective,” Naka wrote in April, translated by VGC.

“I requested my lawyer to barter with our enterprise companions to a minimum of enable me to deal with points on Balan Wonderworld’s growth till the very finish, however they ignored my requests, so I in the end determined to file a lawsuit in court docket.

“It is as a result of of this that Balan Wonderworld obtained all the criticisms and feedback you all know nicely,” he claimed. “It is sort of unlucky {that a} venture I had spearheaded from the starting would prove this fashion.

“Personally, I imagine that it’s a true shame that Balan Wonderworld was launched in the state that it was in. I needed to indicate the world an motion sport in its correct mild. Therefore, I imagine that Square Enix and Arzest are firms that care about neither video games nor their followers.”