Sonic co-creator Yuji Naka pleads guilty to insider trading

Sonic the Hedgehog co-creator, Yuji Naka, pleads guilty to insider trading

He broke Japanese financial law by purchasing Aiming stock before the company's agreement with Square Enix was revealed.

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Naka sold his investment for a profit of over $150,000.

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Naka signed on with Square Enix in 2018, but left after his project Balan Wonderland shipped to customers.

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He sued Square Enix for removing him as director of Balan six months before launch.

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Two former employees were also arrested for insider trading.

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Square Enix is cooperating with investigators and has established a system to prevent insider trading.

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The guilty plea theoretically discourages developers from manipulating the stock market.

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Naka's fall from grace highlights the dark side of the gaming industry.

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