VShojo, one of the leading Western VTuber agencies, has officially shut down following a shocking admission from founder and CEO Justin “Gunrun” Ignacio about financial mismanagement. In a statement released on VShojo’s official social media, Gunrun revealed that the company had become insolvent and admitted to using funds that were intended for charity to sustain company operations.
“VShojo has failed, and I’ve mismanaged the company into the situation you’re all witnessing,” Gunrun stated. “So today I am sharing the difficult news that VShojo is shutting down, and I take full responsibility for the decisions that led us to this point.”
The most damning revelation involves funds raised by VShojo talent Ironmouse during her record-breaking subathon streams. Ironmouse had pledged to donate a significant portion of her earnings to the Immune Deficiency Foundation. While direct donations through platforms like Tiltify went straight to the charity, Twitch subscription revenue was processed through VShojo first—and apparently never made it to its intended destination.
Founded in late 2020, VShojo quickly established itself as a prominent player in the VTuber industry. The agency raised approximately $11 million in investment capital and built its reputation on a “talent-first” approach, offering creators favorable contract terms and allowing them to retain intellectual property rights to their VTuber personas.
Despite this substantial funding, the company struggled to generate enough revenue to cover its operational costs. Expenses included debut investments, infrastructure, concerts, events, and staffing. When attempts to secure additional funding failed, the company’s financial situation became dire.
Gunrun admitted in his statement that he used funds earmarked for charity in a desperate attempt to keep the company running, believing he could replace the money later. This admission raises serious legal questions, as misappropriation of charitable funds can constitute fraud, regardless of intent to repay.
The shutdown affects both US and Japanese operations, impacting dozens of creators and staff members. Reports suggest that some talents, including Ironmouse, hadn’t received proper payouts for over a year. The missing charity funds are estimated to be around $500,000.
VShojo’s collapse has sent the VTuber community reeling, where the agency had been seen as a Western counterpart to Japanese giants like Hololive and Nijisanji. The situation raises concerns about financial oversight and transparency in the rapidly growing VTuber industry.
