Key Facts
• October 2024: Ortz, an AI developer, listed on Tokyo Stock Exchange Growth Market.
• July 30, 2025: Ortz filed for civil rehabilitation; delisting set for August 31, 2025.
• 91% of Ortz’s 2022 revenue came from fraudulent schemes involving “AI GIJIROKU.”
• $119 million in revenue overstated from 2021 to 2024 due to circular transactions.
• “AI GIJIROKU” had 28,699 paid accounts reported in 2024; actual active accounts were 2,236.
• Founder and former CEO Chitaki Yonekura led fraudulent schemes starting June 2021.
• CFO Yusuke Hioki joined in October 2021 and quickly became involved in the scheme.
• 44 venture capital firms, including JAFCO and SBI Group, invested in Ortz.
• Auditors and Tokyo Stock Exchange failed to detect the simple fraudulent structure.
• CEO of Tokyo Stock Exchange defended oversight, citing deliberate deception by Ortz.
Summary
Ortz, a prominent AI developer, collapsed less than a year after its October 2024 IPO on the Tokyo Stock Exchange Growth Market. The company overstated $119 million in revenue from 2021 to 2024 through fraudulent circular transactions involving its “AI GIJIROKU” service. Despite reporting 28,699 paid accounts in 2024, only 2,236 were active. Founder Chitaki Yonekura and CFO Yusuke Hioki orchestrated the scheme, deceiving auditors, venture capitalists, and the Tokyo Stock Exchange. The failure highlights systemic oversight issues, with 44 venture capital firms and major stakeholders misled. Tokyo Stock Exchange CEO defended the inability to detect the fraud, citing deliberate and sophisticated deception. Ortz’s delisting is scheduled for August 31, 2025.
