Editor’s note: This story has been updated with comments from NetEase.

NetEase Inc’s NTES NetEase Games, one of China's leading gaming companies, is facing a corruption scandal.

According to reports from Bloomberg Law, the company's General Manager Xiang Lang, along with esports lead Jin Yuchen and several other employees were arrested on charges of bribery and money laundering.

NetEase said in a statement to Benzinga that it recently addressed two cases of suspected misconduct. The instances involve “a small number of employees within its domestic Chinese market operations,” the company said.

“These matters are currently under investigation by the relevant authorities and as this investigation is ongoing, we are unable to provide additional details at this time.”

The company said it is committed to a workplace based on integrity, transparency and fairness and has a zero-tolerance policy on unethical conduct.

Employee Dismissals, Investigation Details

In an internal memo, NetEase Games confirmed nine employees were dismissed due to their involvement in the alleged bribery scheme, the Bloomberg Law report said.

See Also: NetEase-Owned SkyBox Labs Slashes Workforce Due To ‘Unprecedented Challenges’

The case is reported to involve 28 suppliers to the company, with an estimated value of one billion yuan (around $139.3 million). The names of those involved have reportedly been removed from the company's internal systems.

After the arrests, staff reported that their computer screensavers were changed to messages reminding employees of the company's compliance protocols.

This investigation marks the second major internal anti-corruption inquiry at NetEase since September 2023, according to Eurogamer.

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