Saint Seiya creator sues former manager for $19.6 million, says some funds went to crypto

The creator of the popular manga franchise Saint Seiya, Masami Kurumada, has filed a lawsuit in Tokyo against his former manager and several other defendants, seeking approximately 2.89 billion yen ($19.6 million) in damages over alleged financial diversions from companies connected to his work.

The case, filed with the Tokyo District Court on Sept. 2, alleges that about 4.68 billion yen was improperly moved or redirected between 2018 and 2024, with Kurumada’s legal representatives saying some of the money may have subsequently been used for cryptocurrency investments.

The dispute places Saint Seiya creator Masami Kurumada at the center of a financial case that extends beyond traditional publishing and licensing revenues into the digital-asset market.

How the alleged financial diversion unfolded

According to the lawsuit, the alleged losses involved more than one method of transferring money away from Kurumada’s companies.

One allegation concerns unauthorized transfers from corporate bank accounts into accounts connected to companies established or controlled by the former manager. Another involves licensing payments.

Business partners that were expected to pay licensing revenue to Kurumada’s companies were allegedly instructed to send payments elsewhere instead.

Rather, Kurumada’s lawyers say cryptocurrency investments were among the reported destinations for at least part of the money after it had allegedly been diverted.

The alleged activity continued for roughly six years and was eventually uncovered after irregularities emerged during an audit by the Tokyo Regional Taxation Bureau in 2024.

Kurumada has said he was unaware of the scale of the financial activity because he had entrusted the movement of funds to his manager.

For investors, the case highlights a familiar risk across both traditional finance and digital assets: financial losses can originate from weaknesses in internal controls rather than from the technology used to invest the money.

Saint Seiya creator case puts crypto investments under scrutiny

The cryptocurrency element has attracted particular attention because Kurumada’s legal team says interviews with the former manager indicated that some of the allegedly diverted funds were put into digital assets.

The case does not currently identify the cryptocurrencies involved, the exchanges or platforms allegedly used, or the amount ultimately invested.

There is also no disclosed information showing whether those investments generated profits or losses. It remains unclear whether any cryptocurrency connected to the alleged transactions remains identifiable or recoverable.

Based on the allegations reported so far, the central dispute concerns the unauthorized movement of company funds and the subsequent use of some of those funds, including reportedly for cryptocurrency investments.

The Saint Seiya creator lawsuit therefore offers crypto investors a different lesson from a typical market story. It is not primarily about Bitcoin, Ethereum or another individual asset.

Instead, it raises questions about custody, authorization, transaction records and the ability to trace assets when funds allegedly move through multiple accounts and entities.

The development also comes as Japan continues to strengthen oversight of the country’s cryptocurrency sector.

Japan’s Financial Services Agency says cryptoasset businesses operating domestically are subject to registration requirements, while a new framework for cryptoasset service intermediaries took effect on June 1, 2026.

The regulator has also continued strengthening mechanisms designed to improve the traceability of cryptoasset transfers.

In July, the FSA announced amendments expanding the jurisdictions covered by Japan’s cryptoasset travel-rule requirements, with the changes taking effect Aug. 3, 2026.

Licensing revenue adds another dimension to the case

The financial dispute is closely connected to the commercial success of Kurumada’s intellectual property. Saint Seiya has generated revenue through manga, animation, merchandise and licensing agreements, giving the creator’s companies substantial commercial interests to manage.

Kurumada has said licensing-related income increased significantly during the past decade, including as major Chinese companies such as Tencent and Alibaba became involved with products associated with his work.

According to the lawsuit’s allegations, licensing payments were among the funds that were redirected.

The alleged financial problems also affected Kurumada’s professional plans. A planned 2024 exhibition of his original artwork at Tokyo’s Roppongi Hills was canceled after the financial irregularities came to light.

For the Saint Seiya creator, the dispute represents not only a substantial financial claim but also a breakdown in a relationship built around years of professional trust.

The reported use of cryptocurrency does not by itself establish wrongdoing by a particular blockchain, exchange or digital asset.

The critical questions now concern where the allegedly diverted funds went, whether the assets can be traced and what portion, if any, can ultimately be recovered.

As the legal proceedings develop, further disclosures could clarify which digital assets were involved, how much money entered the cryptocurrency market and whether any resulting holdings remain accessible.

Until those details emerge, the cryptocurrency component of the lawsuit remains an allegation based on statements from Kurumada’s legal representatives rather than a fully documented account of specific crypto transactions.