On June 4th, 2020, Yuji Naka, the co-creator of the popular video game series Sonic the Hedgehog, was sentenced to two and a half years in prison for insider trading. Naka was found guilty of using insider information to purchase shares of a company called CyberAgent in 2008, resulting in a profit of over $1 million.

Naka had been employed by CyberAgent since 2006 and had access to confidential information about the company. In 2008, he used this information to purchase shares of the company before it announced a major acquisition. This allowed him to make a substantial profit when the stock price rose after the announcement.

The Tokyo District Court found Naka guilty of violating Japan’s Financial Instruments and Exchange Act. He was sentenced to two and a half years in prison, as well as being ordered to pay a fine of $1.2 million.

Naka is best known for his work on the Sonic the Hedgehog series, which he co-created with Naoto Ohshima in 1991. The series has since gone on to become one of the most successful video game franchises of all time, with over 140 million copies sold worldwide.

Naka’s conviction serves as a reminder that insider trading is a serious crime with serious consequences. It is illegal in many countries, including Japan, and those found guilty can face significant fines and even jail time. It is important for investors to remember that insider trading is not only unethical, but also illegal.