VShojo, a VTuber agency headquartered in the United States, officially announced on July 25 that it would cease operations due to financial difficulties. The announcement was made by CEO Justin Ignacio, known as Gunrun, via the company’s official X (formerly Twitter) account, sending shockwaves through the VTuber industry.
Failure to Secure Additional Funding Forces Shutdown
In his statement, CEO Ignacio explained that the company had spent the past several months trying to secure funding and restructure operations but was ultimately unable to prevent the worsening financial situation, leading to the decision to shut down the agency. Although VShojo had previously raised approximately $11 million (around ¥1.65 billion), its inability to generate sufficient revenue or secure further investment was cited as the main reason for the closure.
Ignacio took full responsibility for the situation, offering an apology to the agency’s talents, staff, and community. He emphasized that the company had prioritized a “talent-first” philosophy, placing creators and the community above short-term profits. However, this approach ultimately contributed to the deterioration of the company’s financial health.
Charity Fund Misuse Allegation Emerges
Behind the announcement was a serious allegation made by one of VShojo’s most prominent talents. On July 22, globally recognized VTuber Ironmouse revealed that approximately $500,000 (about ¥75 million) raised for the Immune Deficiency Foundation had not been paid out for over a year. She announced her departure from the agency shortly after.
Ignacio admitted that the charity funds had in fact been used as operating capital for the company. However, he claimed that the misuse was not intentional, stating he had not been aware that the funds were designated for charity at the time they were used. He also noted that he is currently using his personal assets to repay the donation amount.
All VShojo Japan Talents Withdraw
VTuber and streamer kson, who was affiliated with VShojo Japan, announced her immediate departure during a YouTube livestream on July 25. According to kson, the agency had repeatedly delayed payments for her work despite her frequent reminders. She stated that a significant portion of her project-related fees had remained unpaid since the previous year, and that the company had repeatedly provided misleading explanations, causing her to lose trust.
VShojo’s revenue model largely depended on merchandise sales and managing payments for sponsored projects. However, the collapse of financial trust became apparent, particularly with the revelation that Ironmouse’s charity funds had been misappropriated. kson condemned the act and said, “It wasn’t just about money. The breaking of trust and the betrayal were the final straw.”
Severe Impact on the VTuber Industry
Founded in November 2020, VShojo rapidly grew into a major VTuber agency focused on the English-speaking market. In 2022, it launched its Japanese branch, VShojo Japan, signing Japanese talents such as kson and Amemiya Nazuna. In November 2024, the agency launched its first VTuber group, NOVA.
However, from around May 2025, multiple talents began to leave the agency, including Matara Kan, GEEGA, and Zentreya. The situation worsened significantly following the revelations from Ironmouse and kson, ultimately leading to a complete exodus of all affiliated talents.
While management issues have affected VTuber agencies in the past, the ethical implications of misusing charity funds in this case could have long-lasting consequences for the industry’s credibility. For Japanese agencies aiming to expand into English-speaking markets, this incident highlights the risks of overseas operations.
As of now, VShojo’s official website and YouTube channel remain accessible, but no details have been provided regarding how the shutdown will be handled. Industry observers are closely monitoring how the company will address outstanding payments to talents and possible refunds to fans as it winds down operations.
