Former Executive of Puzzle & Dragons Studio Accused of Embezzling $2.35 Million

GungHo Online Entertainment, the developer behind the popular Puzzle & Dragons game, has accused a former senior executive of embezzling approximately $2.35 million by creating fake work orders and outsourcing contracts. According to a statement released by the company on August 14, 2025, the former executive, who was terminated due to disciplinary actions, allegedly engaged in misconduct, including the misappropriation of company funds through fictitious work orders. An initial investigation, supported by external law and accounting firms, confirmed that the former employee had embezzled around $1.67 million by using a third-party job-ordering service to create fake work orders, with an additional $680,000 lost due to fraudulent outsourcing fees. The company has formed an internal investigation team, led by independent auditors, to conduct a detailed investigation and analyze the causes of the alleged misconduct. The former employee was dismissed on July 24, 2025, and GungHo Online Entertainment is cooperating with investigative authorities, considering filing criminal charges. The company apologizes for any inconvenience caused and expects the impact on its financial results to be minor.