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“Saint Seiya” creator Masami Kurumada has sued his former manager and other defendants for roughly 2.89 billion yen ($19.6 million) after alleging that billions of yen were diverted from his companies over six years, with some of the money believed to have been invested in cryptocurrency.
According to the lawsuit filed with the Tokyo District Court on Sept. 2, Kurumada Production and two other companies headed by the 72-year-old manga artist claim they suffered approximately 4.68 billion yen in losses between 2018 and 2024 through unauthorized transfers and diverted licensing payments.
The former manager, who served as a director of the three companies, had been entrusted with accounting, editorial work and other administrative duties for years. Kurumada’s lawyers said the manager has acknowledged taking the funds and told them he had acted with Kurumada’s interests in mind and had no malicious intent.
Some of the diverted money is believed to have been used for cryptocurrency investments, according to Kurumada’s legal representatives.
Kurumada seeks 2.89 billion yen after partial repayment
The three companies are seeking approximately 2.89 billion yen in damages from the former manager, his relatives, acquaintances and other parties after roughly 1.8 billion yen of the alleged losses was repaid.
Court filings allege that the former manager transferred money without authorization from bank accounts belonging to Kurumada’s companies into accounts held by separate companies he had established or controlled.
Another method involved licensing revenue. Business partners that would normally have paid licensing fees to Kurumada’s companies were allegedly directed to send the money elsewhere, allowing funds generated from Kurumada’s intellectual property to be diverted.
The alleged transactions continued for around six years before irregularities were uncovered during a Tokyo Regional Taxation Bureau audit in 2024.
Kurumada said he had left the movement of money entirely in the former manager’s hands and was unaware of the scale of the funds passing through the companies.
Speaking at a press conference in Tokyo after the lawsuit was filed, Kurumada said he initially found the allegations difficult to believe after spending decades working in the manga and anime business.
“I really couldn’t believe it,” Kurumada said, describing his feelings after learning about the alleged losses.
He said the situation eventually left him feeling empty and frustrated after a person he trusted with his finances was accused of diverting company money for years.
Crypto investments reportedly involved diverted funds
Kurumada’s lawyers said interviews conducted with the former manager indicated that at least part of the money had been directed into cryptocurrency investments.
The available court reports have not identified which cryptocurrencies were purchased, the platforms used to make the investments or how much of the alleged 4.68 billion yen was ultimately placed into digital assets.
No information has been disclosed on whether the cryptocurrency investments produced gains or losses, or whether any digital assets remain among the funds that Kurumada’s companies are seeking to recover.
The case comes as Japanese authorities have increased scrutiny of cryptocurrency transactions linked to fraud and other financial crimes. In August, crypto.news previously reported that Japan’s Financial Services Agency and National Police Agency had requested stronger withdrawal controls from domestic crypto exchanges, including waiting periods for newly registered withdrawal addresses and faster restrictions on suspicious accounts.
Official figures cited at the time showed Japan recorded 18,067 special fraud cases through May 2026, with losses reaching 151.47 billion yen. Social media investment scams accounted for 5,099 cases and 70.04 billion yen of those losses.
Japanese authorities have dealt with crypto-linked cases extending beyond investment scams. Tokyo police in June arrested Hu Xiaowei, an alleged senior figure connected to Cambodia’s Prince Group, which U.S. authorities have accused of involvement in cryptocurrency investment fraud and money laundering.
A separate Nikkei investigation published that month linked a crypto fraud operating through Japan to a Chinese network suspected of exporting fentanyl precursor chemicals. The reported scheme used Japanese internet domains and a fake token called Zksync.jp to target cryptocurrency users.
Japan has tightened its crypto framework
Japan has been changing the rules governing legitimate digital asset activity at the same time authorities are strengthening controls against fraud.
The country’s parliament in July passed financial law amendments that classify cryptocurrencies as financial products under the Financial Instruments and Exchange Act.
The legislation creates a framework for stricter market oversight and insider trading restrictions while opening a route toward domestic crypto exchange-traded funds and a proposed 20% tax treatment for cryptocurrency gains.
Major financial groups have been preparing products under the changing framework. SBI, Rakuten, Nomura and other Japanese financial institutions have been exploring crypto investment trusts as regulators work toward allowing investment funds to hold digital assets.
The cryptocurrency component of Kurumada’s lawsuit, however, concerns the alleged use of company funds after they had been diverted, based on statements from his legal team, rather than an allegation against a cryptocurrency platform or digital asset issuer.
Saint Seiya licensing revenue was allegedly redirected
Kurumada’s works have generated substantial licensing income, particularly as “Saint Seiya” developed an international audience through manga, animation, merchandise and other products.
At the Tokyo press conference, Kurumada said revenue had increased substantially over the past decade as Chinese companies, including Tencent and Alibaba, became involved with products connected to his work.
The scale of those payments formed part of the alleged mechanism described in the lawsuit, with licensing fees from business partners among the funds that Kurumada’s side says were redirected.
Kurumada made his debut with “Sukeban Arashi” before creating titles including “Ring ni Kakero.” “Saint Seiya,” one of his best-known works, later became an animated series and developed a large audience outside Japan.
The alleged embezzlement affected plans connected to his work as well. Kurumada said a planned exhibition of original artwork at Roppongi Hills in Tokyo in 2024 had to be canceled after the financial irregularities were discovered.
He apologized to fans who had expected to attend the exhibition and said he now intends to hold it in Tokyo’s Ikebukuro district in spring 2027.
Despite saying the episode had temporarily left him distrustful of people, Kurumada told reporters that he intends to continue drawing for readers and fans of “Saint Seiya” and his other manga around the world.
Source: cryptonews.net