A Japanese indie developer is seeking legal action over alleged missing funds from a crowdfunding campaign, says the funding platform claims the money was 'mistakenly wired to a different client'

428: Shibuya Scramble is an early pioneer of detective gaming, a visual novel set in Japan's Shibuya ward that uses live action photographs and a complex timeline mechanic to present its crime narrative. Originally launching in 2008 for the Wii, it was released on Steam a decade later, garnering 'Very Positive' reviews and a cult following.

Last year, 428's executive producer Jiro Ishii announced a spiritual successor—Shibuya Scramble Stories—launching a crowdfunding campaign on the Japanese platform Ubgoe to fund it. The game blew past its funding goal in less than an hour, raising a total of 55 million yen ($340,000) by the campaign's end.

It all seemed like a straightforward crowdfunding success. But the situation recently took a bizarre twist. In March, Automaton Media reported that Shibuya Scramble Stories' developer , Skeleton Crew Studio, announced it was seeking legal action after Ubgoe had sent them less than half the funds raised. In a statement shared on X, Skeleton Crew Studio claimed it has received only 27.75 of the total 55 million yen from Ubgoe, amounting to roughly $170,000.

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Last week, in an interview with Denfaminicogamer (via Automaton) Ishii shed further light on the situation, along with his legal counsel Takahiro Kasagi. In this interview, Ishii states that Ubgoe was supposed to transfer all funds by September 1, 2025, but missed the deadline. When Ishii contacted Ubgoe the next day, CEO Kazua Okada allegedly told him the money was "mistakenly wired to a different client".

Following this, Okada apparently signed a memorandum at Ishii's insistence, guaranteeing the Ubgoe would pay the amount due in full by September 16. But it only transferred a fraction of the total sum by that date. According to Ishii, Okada claimed this was because the money Ubgoe had mistakenly transferred had still not been repaid, but when asked to provide evidence of this, Okada repeatedly refused to show Ishii and Kasagi the transaction, or the account from which the transaction was made.

Ishii goes on to say that Okada did eventually show him the account, but the numbers of the transaction itself were obscured, leading Ishii to believe that he was being misled. On top of that, Kasagi points out that in these circumstances, it is typical for a business to initiate a transfer reversal with the bank, leading him to be sceptical about Okada's claim that he couldn't recoup the funds.

Compounding the situation is that, according to Ubgoe's terms and conditions, it is Skeleton Crew Studio, not Ubgoe, that is responsible for fulfilling its obligations to backers, something that Ishii wasn't aware of when all this began. "I myself didn't realise that the project owner would bear the responsibility if the collection agency absconded with the funds," Ishii said. "I suppose I was acting under the assumption that people were inherently good."

The good news is that the issue shouldn't affect the development of Shibuya Scramble Stories any more than it already has, as it has guaranteed the project's realisation with support from another company, Toyku Land Corporation. Nonetheless, Ishii is resolved to pursue the matter with Ubgoe, and ensure the funds owed to the project are, eventually, paid in full.