Chen Shaojie, DouYu's CEO, faces arrest in China, raising concerns over regulatory crackdown

Chinese video game live-streaming giant DouYu announces the arrest of its Chairman and CEO, Chen Shaojie, as part of an executive crackdown in the country.The company discloses the arrest in a regulatory filing, revealing that it learned about the situation on Monday, though the arrest reportedly occurred around November 16 in Chengdu.

DouYu emphasises that it has not received official information regarding the investigation or reasons behind Chen's arrest, warning of potential material impact on its business due to ongoing detention and legal proceedings.

Chengdu police state that Chen, aged 39, stands accused of operating a casino, confirming DouYu's executive arrest, adding another prominent figure to the list of business leaders facing legal issues in China.

Chen's disappearance follows a five-month period of scrutiny by the Cyberspace Administration of China, investigating alleged 'serious' issues on DouYu, including pornography and vulgar content. The platform has also faced allegations of hosting online gambling, an illegal activity in mainland China.

Previously, three individuals associated with DouYu received prison sentences for 'opening casinos' through an online lottery, marking a significant case handled under the Ministry of Public Security's direct orders.

DouYu, committed to regulatory compliance, continues its operations, stating it is operating as usual while developing contingency plans in response to Chen's arrest. The company refrains from commenting on pending legal proceedings in its latest filing and is yet to respond to CNN's request for comment.