Yuji Naka, co-creator of the legendarySonic the Hedgehogseries, has been found guilty and sentenced for insider trading. After joining Sega in 1984, Naka made a name for himself for his work on titles likePhantasy Star 2,Nights into Dreams,andBurning Rangers- but his most noteworthy contribution to gaming is his part in creating the Blue Blur. Naka remained a part of Sega until 2006, when he left to create his own development studio Prope. From there, he would join Square Enixto directBalan Wonderworld- a colorful platformer that was panned by critics and met with poor sales in 2021.
Balan’s lackluster performance would pale in comparison to the legal troubles that befell Yuji Naka over the past year or so. Last November,Naka was arrested on allegations of insider tradingalongside two other employees at Square Enix. These individuals were accused of buying shares in a developer named Aiming Co and attempting to use their knowledge of the company’s inner business dealings to profit off a then-upcoming collaboration with Square Enix. Three weeks later, Naka was arrested again, this time for insider trading surroundingFinal Fantasy 7: The First Soldier.
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Yuji Naka and his co-conspirators were indicted for these charges last December, and now a final verdict has been given. According to IGN, Judge Madoka Hiruta issued a two-and-a-half-year prison sentence for theSonic the Hedgehogco-creator that will be suspended for four years, as well as two fines of ¥2 million (roughly $14,000) and ¥170 million (about $1.1 million). While issuing this sentence, Hiruta stated that Naka “has damaged the fairness and soundness of the stock market and the trust of investors” with his actions.
Going into further detail aboutYuji Naka’s insider trading, he reportedly bought a total of 130,000 shares in Ateam and Aiming Co before the developers announced partnerships with Square Enix forFinal Fantasy 7: The First SoldierandDragon Quest Tact. Naka made roughly $146,000 for his actions, which stand in direct violation of Japan’s Financial Instruments and Exchange Act.
Yuji Naka was reportedly considering retirementfollowing the release ofBalan Wonderworld- about a year before his insider trading crimes started coming to light.
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