Huya douyu Photo:VCG
The CEO of DouYu, a popular Chinese live streaming platform, was arrested on suspicion of running an illegal gambling establishment and is under further investigation, media reported on Wednesday.
According to the Chengdu Police, a 39-year-old man surnamed Chen was suspected of opening a casino, and was arrested in accordance with the law.
Although the police did not directly name the man, DouYu announced on Tuesday that Chen Shaojie, the chairman of its board of directors and its CEO was arrested by Chengdu police around November 16, and the company has not received any formal notification regarding the investigation of Chen or the reasons for his apparent arrest.
Chen’s continued detention and any subsequent legal proceedings and law enforcement actions against relevant parties may have a significant adverse impact on the company’s reputation, business, and financial performance, DouYu said.
In early November, multiple sources revealed that Chen had been out of contact for nearly three weeks. According to media reports, Chen was last seen in the public in August when he attended the company’s second-quarter financial report analysis conference call. At that time, he stated that DouYu had improved its platform-related rules and procedures, with the goal of achieving long-term development, and would actively cooperate with regulatory work in the future.
According to The Paper, there are rumors that the incident involving Chen may be related to a live streamer named Changsha Rural Brave Squad in the DouYu live room. Media reported that the streamer is suspected of engaging in gambling activities using various lottery rules on the platform.
In May, China’s top internet regulator dispatched a team of officials to oversee rectification to address problems including pornographic and inappropriate content on the platform, with DouYu said it will actively cooperate with inspection and guidance offered by officials from the local cyberspace administration of Central China’s Hubei Province, and will carry out in-depth content rectification in accordance with regulatory requirements.