On Tuesday, DouYu, the foremost live-streaming platform backed by Tencent Holdings, confirmed that its chief executive officer was taken into custody. The CEO, who also doubles as the chairman of the board of directors, is Shaojie Chen. The company was notified about the CEO’s arrest on November 20, 2023, although he was apprehended “on or around November 16, 2023.”
Following the announcement of the arrest of its CEO and board chairman, DouYu admitted that it wasn’t provided with the rationale behind his arrest. Further, the firm denied receiving an official notice about pending investigations or potential proceedings against Chen. DouYu stated that it is currently unable to give any indication of when its CEO could be freed and has no knowledge of any impending legal actions against him. The leading live-streaming service confirmed, however, that the CEO’s ongoing detention and potential legal proceedings could have serious implications for its corporate image.
Despite Chen’s ongoing detention, DouYu assured that it remains in full operation. The live-streaming platform stated its commitment to maintaining the most stringent regulatory compliance standards. Concluding its announcement, DouYu declared that its board would continue supervising its operations while the company is developing “contingency plans” in light of Mr. Chen’s arrest and subsequent investigations.
“The company is unable to comment on the potential nature or scheduled timeline of possible ensuing legal proceedings. Mr. Chen’s ongoing custody and any subsequent related legal proceedings and punitive actions against involved parties may significantly impact the company’s reputation and business operations,“
according to a statement issued by DouYu.
Police Yet to Reveal Reasons for DouYu CEO’s arrest
The recent disclosure comes on the back of reports earlier this month by several local media sources affirming that Chen has been unreachable recently. Separate reports insinuated that his sudden disappearance or possible arrest may be linked to DouYu streaming content that contained elements of pornography or gambling.
Local law enforcement agencies have yet to deny or validate such reports. Additionally, the police have yet to reveal the reason for Chen’s arrest, including whether he is under investigation or may be faced with criminal charges.
Chen’s arrest follows a sudden investigation into one of DouYu’s operations by China’s internet watchdog, the Cyberspace Administration of China. Additionally, Jack Ma, the globally-renowned CEO of Alibaba, along with Bao Fan, the CEO and founder of China Renaissance, also had brief periods of absence from the public eye earlier this year. The connection, if any, between their disappearances and the arrest of DouYu’s CEO remains unclear.
