By Atticus Trash | Trash Media Group
What started as one of VTubing’s boldest experiments—a talent-first agency built on freedom and transparency—has ended in disgrace, bankruptcy, and legal questions that could shake the industry. VShojo, once celebrated for putting creators first, now stands accused of withholding over $500,000 in charity funds, failing to pay its own talent, and leaving fans and vendors out thousands of dollars on unfulfilled merchandise orders.
The collapse didn’t happen overnight. It’s a story of broken promises, mismanagement, and a desperate gamble that turned into the most explosive scandal VTubing has ever seen.
VShojo launched in 2020 with a unique pitch: unlike other agencies that owned talent IP and dictated every move, VShojo promised freedom and fair pay. Its CEO, Justin “Gunrun” Ignacio, a Twitch founding engineer, sold creators on transparency and trust.
For years, it worked—or at least it looked like it did. Talent rosters grew, conventions featured VShojo panels, and collaborations with major brands made headlines. But the seeds of collapse were planted in September 2024, when VShojo’s brightest star, Ironmouse, decided to break records for a cause close to her heart.
On September 2, 2024, Ironmouse launched a marathon Twitch subathon that would shatter all records: over 300,000 subscriptions, millions of views, and a tidal wave of community goodwill. But this wasn’t just a personal milestone.
It was pitched as a charity event. Half of all revenue from the subathon would go to the Immune Deficiency Foundation (IDF)—a cause deeply personal to Ironmouse, who has lived her entire adult life battling a severe immune disorder.
The promise wasn’t rumor—it came straight from VShojo leadership:
“Half of the streaming revenue during the Subathon will be donated.” — Justin Ignacio, CEO of VShojo
This public commitment set the tone for the entire campaign. Fans subscribed, donated, and spread the word, believing they were funding a life-saving mission.
The final tally? More than $500,000 promised to IDF.
But over a year later, the IDF hadn’t seen a dime.
On July 21, 2025, Ironmouse announced her immediate departure from VShojo in a heartbreaking statement, citing “broken trust” and confirming that the promised charity donation was never delivered.
Her words were blunt:
“I cannot continue to be part of an organization that has withheld funds raised for a charity so close to my heart.”
Fans were stunned. Other VShojo talents began quietly removing branding from their profiles. Rumors of NDAs and unpaid wages poured in. And then the dam broke.
Two days later, Justin Ignacio released a statement admitting full responsibility for VShojo’s failure and announcing the company’s shutdown.
“I acknowledge that some of the money spent by the company was raised in connection with talent activity, which I later learned was intended for a charitable initiative… At the time, we were working hard to raise additional investment capital
to cover our costs… We were unsuccessful.”
But here’s the problem: Justin knew. The receipts don’t lie. That October tweet promising charity wasn’t a misinterpretation. It was a deliberate, public pledge.
This isn’t just bad optics—it’s potential misappropriation of charitable funds, a serious legal and ethical violation.
As more creators broke silence, a grim picture emerged:
Kson: unpaid since September 2024.
Projekt Melody, Zentreya, Haruka Karibu, GEEGA, Henya: reported late or missing payments, forced silence under strict NDAs.
VeiBae: exposed internal secrets after NDAs collapsed, confirming a toxic, financially desperate environment.
What started as one person’s fight for accountability became a mass exodus.
If you thought it ended there, think again. Enter MKRO + Infinikey, the companies behind VShojo’s high-end keyboard collabs. Their July 24 statement revealed a new layer of the scandal:
“All sales and transactions were managed exclusively through the VShojo store… At this time, we have not received an order from VShojo and are actively working to gain clarity.”
Translation: VShojo took fan money for merch, never paid the vendor, and never delivered product details. This includes:
Pre-orders for Projekt Melody and Henya keycap sets.
Earlier in-stock sales for Ironmouse, Zentreya, and Haruka—likely including anime convention sales.
Fans are now scrambling for refunds, with many turning to chargebacks. This isn’t just mismanagement—it’s edging into consumer fraud territory.
By July 25, it was over. VShojo formally announced it was shutting down, citing lack of funds after burning through $11 million in investment.
Justin’s final words to the community?
“I am deeply sorry… You did not deserve this.”
But apologies can’t erase the fact that talents were unpaid, fans were left hanging, and charity funds never reached their destination.
Justin’s Oct 2024 Tweet: Promises half of Ironmouse’s subathon revenue to IDF.
Justin’s July 2025 Shutdown Statement: Claims he only “later learned” funds were for charity.
Both can’t be true. And the timeline suggests something worse: VShojo used earmarked donations as a last-ditch lifeline to keep the lights on.
So what comes next for Vshojo now that operations have ceased?
Legal Trouble: Misuse of charitable funds can trigger state AG investigations and lawsuits.
Civil Liability: Fans and vendors may pursue action for unfulfilled merch orders.
Industry Impact: Sponsors will rethink deals. Creators will demand transparency—and agencies will face scrutiny like never before.
Meanwhile, Ironmouse has raised over $1 million for IDF through a new Tiltify campaign—proving the community’s faith in creators, even as agencies fail them.
VShojo promised a revolution. Instead, it delivered the biggest betrayal VTubing has ever seen. Let this be the warning: without transparency and accountability, even the brightest stars can be dragged into darkness.
Trash Media Group © 2025
