The ongoing legal battle between the co-founders of Unknown Worlds and Krafton is intensifying, as new allegations emerge regarding an alleged plot to delay the release of Subnautica 2. The plaintiffs, Charlie Cleveland, Max McGuire, and Ted Gill, assert that Krafton initiated a covert operation called ‘Project X’ to strategize ways to avoid a substantial earnout tied to the game’s launch.
Key Allegations Against Krafton
In a recent filing submitted by Fortis Advisors, the co-founders accuse Krafton’s CEO, Changhan ‘CH’ Kim, of using deceptive practices to postpone Subnautica 2’s launch. They claim this delay is designed to sidestep a projected earnout estimated at approximately $191 million, linked to the game’s performance following its early access debut.
- Project X: Alleged secret task force aimed at negotiating with founders or taking control of Unknown Worlds.
- Claims of Deception: Krafton reportedly pressured the founders to delay the game’s release under false pretenses, citing unsubstantiated readiness concerns.
- Insider Communications: Messages between Kim and Krafton’s CFO, Richard Yoon, suggest discussions about a potential takeover.
The Plaintiffs’ Position
The plaintiffs argue that Krafton unjustly terminated their contracts to avoid paying the earnout. According to the filing, they contend that the game was ready for its planned early access launch by August 2025. During an internal review on May 27, 2025, Krafton’s creative director, Hyeon-gyu Park, reportedly concurred with the decision to proceed with the launch.
The founders also claim that after a meeting in Los Angeles on May 20, Kim expressed significant concerns about the earnout and its implications for his role and Krafton’s overall value. They noted that Kim even consulted ChatGPT for advice on the matter, which indicated it would be complicated to cancel the payout.
Timeline of Events
| Date | Event |
|---|---|
| May 20, 2025 | Kim meets with Cleveland to discuss the potential impact of the earnout. |
| May 27, 2025 | Krafton conducts an internal milestone review indicating readiness for launch. |
| August 2025 | Planned early access launch for Subnautica 2. |
| November 17, 2025 | Trial expected to commence in Delaware Chancery Court. |
The controversy surrounding these allegations adds to an already complicated relationship between the former executives and Krafton. The plaintiffs maintain that they are seeking reinstatement to their roles, emphasizing that Krafton has not provided adequate justification for their termination. As the November trial date approaches, these claims will be scrutinized in court, potentially illuminating further details of Krafton’s actions and intentions regarding Subnautica 2.
