The VTuber talent agency VShojo, which prominently touted a `talent-first` philosophy, recently faced intense scrutiny. Its leading VTuber, Ironmouse, brought allegations that the company had withheld a substantial payment from her and, crucially, failed to donate over $515,000 that she had tirelessly fundraised for the Immune Deficiency Foundation.
Following a complete and rapid departure of its entire talent roster, leaving VShojo without a single active VTuber, the CEO has now admitted to redirecting those charitable contributions to sustain the ailing company`s operations.
In a statement released on VShojo`s X account on July 24, CEO Justin Ignacio conceded that he had `mismanaged the company into the situation you`re all witnessing.` Ignacio further elaborated on VShojo`s severe financial difficulties in recent months, explaining that despite securing approximately $11 million to implement their `talent-first` approach, the company ultimately ran out of capital. He stated that `some of the money was raised in connection with talent activity,` claiming he later became aware of its intended charitable purpose. He added, “We were working hard to raise additional investment capital to cover our costs, and I firmly believed, based on the information available to us, that we would be able to do so and cover all our expenses. We were unsuccessful in our fundraising efforts.”
However, users on X swiftly highlighted various instances where Ignacio had previously acknowledged Ironmouse`s charity streams at the time they occurred. They allege that his claim of `later learning` about the funds` charitable intent is disingenuous, suggesting he was fully aware throughout VShojo`s financial struggles. As a direct consequence of this unfolding situation, Twitch has removed the `GunRun` global emote, which was previously dedicated to Ignacio.
With Ignacio`s explicit confirmation that `VShojo is shutting down,` several former talents are interpreting this development as a voiding of their previously signed non-disclosure agreements. This has led multiple VTubers to come forward with public allegations of `predatory contracts` and claims of long-standing unpaid dues for merchandise and sponsorship funds, some reportedly dating back `years ago.`
In response to discovering that the substantial funds she raised had not reached the Immune Deficiency Foundation, Ironmouse independently launched a new Tiltify campaign dedicated to the same charity. Remarkably, within just three days, this new initiative has already surpassed $1.25 million in donations.