VShojo Breakdown: Ironmouse Leaves, Charity Fraud Claims & VTuber Exodus

VShojo is in crisis as Ironmouse leaves, top members resign, and allegations emerge of charity fraud, unpaid VTubers, and CEO coverups. Here’s everything you need to know about the downfall of VShojo.

What Is VShojo and Why Is It Falling Apart?

VShojo was never meant to be just another VTuber agency. Launched in 2020 by Justin “Gunrun” Ignacio, it promised something radical: a “talent-first” space where streamers actually owned their avatars, their content and identity. The name VShojo is a mashup of “Virtual” and “Shoujo,” meaning “virtual girl.” For a while, its premise worked. Founding members Ironmouse, Nyanners and Projekt Melody weren’t just talents, they were the face of a new era.

Now, in 2025, that era may be coming to an abrupt end. In just a few weeks, VShojo went from respected pioneer to full-blown cautionary tale. What started with a goodbye video turned into something alot bigger and messier.

• Ironmouse leaving VShojo and accusing them of withholding payments
• Claims of unpaid talent, missing money, and broken promises
• A $500,000 charity donation that still hasn’t reached the cause
• Kson, Zentreya, Projekt Melody all walking away from the agency
• A CEO livestream where VShojo Japan admitted U.S. funds may have “disappeared”
• Legal experts now warning: this could end in lawsuits or even shutdown

Once pitched as a bold alternative to idol-style agencies like Hololive and Nijisanji, VShojo is now stuck in survival mode. Fans feel betrayed. Creators are cutting ties. And what used to be seen as a safe haven for Western VTubers might not make it to the end of the year.

Let’s break it all down, from Ironmouse’s bombshell announcement to Kson’s emotional livestream, the missing money, the legal fallout, and where the rest of VShojo’s talents actually stand.

Ironmouse Leaving VShojo: The Face of the Brand Is Gone

On July 21, 2025, Ironmouse released a YouTube video titled “Why I Left VShojo”, officially ending her nearly five-year run with the agency. In the first few seconds, she states plainly:

“I am leaving VShojo.” (0:00)

She went on to reveal serious allegations regarding missing payments and unfulfilled charity donations:

“I have been misled by VShojo… I believe that I am owed a significant amount of funds which I have not been paid. And most importantly… the Immune Deficiency Foundation… is owed over half a million dollars from VShojo.” (0:05–0:36)

The charity in question is extremely personal to her. She explained that the foundation was instrumental in helping her cope with CVID, a severe primary immune deficiency, and that she had raised over $500,000 during her most recent subathon. Because the donations were part of her Twitch revenue and not routed through Tiltify, VShojo was responsible for sending them, but allegedly they never did.

“Unfortunately, still a year later, VShojo has not paid the charity.” (7:17)

Ironmouse also addressed the emotional toll this has taken on her, stating:

“This entire situation has broken me. I just wanted to do something good and to give back to a community that helped me.” (8:36)

She emphasized that she was advised not to share the full story at this time, but made it clear she plans to do so:

“I really wish that I could tell you more, but right now I have been advised to wait for legal proceedings.” (9:17)

Ironmouse closed the video visibly upset, confirming her departure and stating she is now an independent VTuber. All ad revenue from the video and a linked Tiltify campaign are being directed to the Immune Deficiency Foundation.

With Ironmouse’s words now public, VShojo’s internal conflicts are under global scrutiny.

More VShojo Members Leaving (Or Quiet Quitting)

After Ironmouse’s departure, several prominent VShojo talents publicly distanced themselves from the agency. Some announced formal resignations, while others quietly removed “VShojo” from their social media names.

Zentreya, a founding member, posted on X:

“On July 11th, I will be leaving VSHOJO for new opportunities and a new adventure. My time here was long, and I had many fun moments.”

AmaLee (Monarch) also issued a formal statement:

“As of today I will be terminating my contract with VShojo effective immediately and I will be returning to being an independent VTuber and content creator… My love goes out to the talents, I wish you all the best.”

Projekt Melody, another founding member of VShojo, shared a more emotional and candid response via X:

“I waited to make a statement, cuz I’m always anxious & struggle to find my words. But, yes, I’m leaving VShojo. I was an OG talent, put my everything into this comp. But I’m beyond devastated at what happened. & I never in a million years thought I’d be saying these words. 💔”

Other English and Japanese talents including Kuro Kurenai, Froot, Henya the Genius, Hime Hajime, Michi Mochievee, and more quietly removed “VShojo” from their X handles in protest or silent solidarity. (sportskeeda.com)

Kson, part of the VShojo Japan branch, confirmed her departure during a livestream while discussing missed payments:

“VShojo hasn’t paid a significant amount of money to me too. They haven’t paid me since last year… I planned to leave on July 31, 2025.”

She also tweeted:

“VShojo’s IP belongs to the talent; so rest assured that the activities of former VShojo talents themselves will remain unchanged.”

This wave of departures and public statements highlights a sharp breakdown in trust.

Kson Confronts VShojo CEO Live Over Missing Funds

The backlash from Ironmouse’s accusations was immediate and intense. Fans, creators, and industry figures began questioning how such a critical charity donation could go missing and whether it had been used to prop up the company’s operating costs instead.

That concern was echoed in a July 22 livestream hosted by Kson, a VShojo Japan member who had originally planned to leave quietly on July 31. But following Ironmouse’s departure, she revealed she hadn’t been paid since September 2024 and could no longer stay silent:

“The reason why I waited so long was that… if I reveal this and say I’m going to quit, they might… not pay me. That was scary for me.”

She invited VShojo Japan CEO Koshi Makino onto the stream for transparency. During the live conversation, he confirmed:

• Makino had not been paid properly himself.
• Staff salaries were reduced to less than half starting in early 2025.
• Funds intended for charity and talent “may have been used for operational costs.”
• Global VShojo money was pooled and not tracked by region, leading to serious accountability issues.

Makino admitted bluntly: “They probably weren’t doing anything like tracking the money properly.”

When Kson asked what happened to the $500K owed to the Immune Deficiency Foundation, Makino said it may have been spent as part of VShojo’s U.S. operational costs. He could not confirm when or if the funds would be returned.

The financial mismanagement has sparked widespread concerns about VShojo’s solvency. One fan summarized the feeling bluntly: “It sounds 10000% like insolvency.”

For Kson, the emotional impact was as severe as the financial one. She told viewers:

“Trust is my heart… and they lost it.”

She also confirmed that all future sponsorships and merchandise would now be handled via direct deals between talent and vendors, bypassing VShojo entirely. The Japan branch is moving toward independent agreements and the company’s future remains uncertain.

In the meantime, Kson encouraged fans to continue supporting former talents as individuals and reaffirmed her support for Ironmouse and the Immune Deficiency Foundation.

Ironmouse’s Fans Rally to Raise Over $700,000 for the Immune Deficiency Foundation

In the days following her announcement, the community rallied hard. Ironmouse launched a verified Tiltify campaign for the Immune Deficiency Foundation and within days, it soared past $740,000 raised, obliterating the original $10,000 goal.

On X, Ironmouse posted:

“I don’t really have words that can properly express how I feel… My heart is so full it feels like it’s going to explode. You all are truly amazing. I’m gonna go cry now 🥹💖”

Even in the middle of a scandal, the VTuber community turned heartbreak into healing, showing that the real power behind these brands is the fans and creators themselves.

Legal Mindset Breaks Down the Fallout

Andrew Esquire, the American attorney and content creator behind Legal Mindset, released a video titled “VShojo Might Be Finished After This” offering a legal breakdown of the growing disaster. In it, he outlines why the situation could go far beyond simple mismanagement, potentially leading to civil suits, regulatory intervention, and even criminal charges.

Esquire specifically focuses on two serious claims: unpaid wages to multiple talents and the mysterious disappearance of $500,000 raised for charity. According to Ironmouse and Kson, VShojo failed to pay them for months (possibly over a year in Kson’s case) while still paying staff and executives.

As for the charity funds, Esquire speculates that the half-million dollars raised for the Immune Deficiency Foundation (a cause deeply tied to Ironmouse’s condition) was quietly withheld and never delivered. While no direct accusation has been made on-stream, he believes the company may have used the money to cover payroll or debts, a move that could constitute charity fraud, misrepresentation, or even embezzlement.

“That money was supposed to go to charity, and they didn’t give it to charity. That’s deplorable. That’s disgusting.” Esquire said, adding that it could result in FTC investigations, state-level scrutiny, or federal wire fraud charges if proven.

He also emphasized that many VShojo talents were likely misclassified as independent contractors, potentially allowing the company to avoid labor laws until challenged. However, because VShojo is based in California, and several talents (like Ironmouse) are U.S. citizens, they could file labor claims that pierce the “independent contractor” label and trigger whistleblower protections.

Esquire predicts a strong likelihood of bankruptcy, warning that VShojo may be withholding payments as part of a planned Chapter 7 filing to discharge what they owe to talents. If that happens, only certain debts, such as employee wages or secured loans, would get priority in repayment.

“This is not like Nijisanji or Hololive. This could be the end of VShojo.” he concluded. The possibility of litigation, regulatory action, or even prison time for executives was not off the table in his assessment.