Sonic dev Yuji Naka was the employee arrested for insider trading at Square Enix

Square Enix has released a statement noting that it is cooperating with authorities and has implemented systems to help educate employees.

Square Enix

Updated on November 17, 2022 at 7:13 p.m.: Yuji Naka has been arrested in relation to insider trading at Square Enix. The developer, known for his work on Sonic the Hedgehog and Balan Wonderworld, was one of the few who used insider information to purchase stock of Aiming Inc prior to public knowledge that Aiming would be creating a Dragon Quest game. Yuji Naka is reported by FNN to have bought roughly 10,000 shares of Aiming.

Original story follows: Prior to an announcement of Square Enix partnering with Aiming for a new Dragon Quest title, two employees had purchased stock in the company. Said employees have since been arrested by the Tokyo District Public Prosecutors Office for using insider information they had learned from their duties to purchase stock in Aiming Inc.

On November 16, 2022, Automaton Japan’s Twitter account broke the news that Square Enix employees were arrested on suspicion of insider trading. It is not currently clear whether these are current or former employees.

The inside trading in question is related to an external developer of Dragon Quest. According to the report, the employees had purchased stock of Aiming Inc., the company that is currently making a Dragon Quest title. These stock purchases were made prior to public knowledge that said game was being developed.

The Yahoo News piece, which has been translated using Google, indicates that one employee purchased shares to the tune of 47 million yen, or roughly $337,000 USD. After news the announcement that Aiming would be making a new game, the stock price rose.

Square Enix has since released a statement saying that the company has been “fully cooperating with requests from the Securities and Exchange Surveillance Commission.” Furthermore, Square Enix will also prohibit the trading of company stock, or stock from another company it is in a relationship with, before important information is disclosed to the public. Keep an eye on our Square Enix page as we follow this story.

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Hailing from the land down under, Sam Chandler brings a bit of the southern hemisphere flair to his work. After bouncing round a few universities, securing a bachelor degree, and entering the video game industry, he's found his new family here at Shacknews as a Guides Editor. There's nothing he loves more than crafting a guide that will help someone. If you need help with a guide, or notice something not quite right, you can Tweet him: @SamuelChandler 

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