While working at Square Enix, Naka claimed to have purchased stock in Dragon Quest developer based on inside information.
The story, first reported by the Japanese news site FNN, has been confirmed in an English-language report by the Asahi Shimbun newspaper.
Naka is said to have purchased stock in developer Aiming in early 2020 based on inside information that it was working on a Dragon Quest mobile game, Dragon Quest Tactical.
The Tokyo District Public Prosecutors Office's special investigations team, which initiated the arrest, stated that Naka purchased 10,000 shares in Aiming for around 2.8 million yen ($20,000) after learning about Dragon Quest Tact in late January 2020.
The assumption is that he was hoping to profit from a rise in the share price following the game's announcement and release.
Naka's arrest comes a day after the arrests of two other former Square Enix employees on the same charges.
Polygon has reached out to Square Enix for comment. In response to Sazaki and Suzuki's arrests, VGC issued the following statement on Thursday:
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