Krafton Highlights Co-Founders’ Testimonies as Crucial in Legal Dispute

The ongoing legal dispute between Krafton and the co-founders of Unknown Worlds is intensifying. The testimonies of Ted Gill, Charlie Cleveland, and Max McGuire from a November trial in Delaware have become pivotal to the case. Krafton claims that these statements reveal its intention not to remove the studio’s leadership to circumvent their earnout payments.
Krafton’s Allegations Against Co-Founders
Krafton asserts that the testimonies demonstrate no premeditated plan to replace Unknown Worlds’ leaders. The company stated, “It became unequivocally clear there was no preconceived plan by Krafton to remove Unknown Worlds’ leadership.” Krafton further alleges that the three co-founders attempted to conceal their decreasing involvement with Subnautica 2 to extract financial rewards from the company.
- Ted Gill: Suggested that if Krafton planned to delay Subnautica 2, they should simply pay the earnout.
- Charlie Cleveland: Admitted he had not informed Krafton CEO Changham Kim about his absence from studio operations.
- Max McGuire: Indicated he had transitioned away from his role as technical director, stepping back from active contributions.
Key Testimonies and Statements
Several key statements emerged during the trial:
- On January 8, 2024, Cleveland communicated in a private message that he had “stopped working” and had entered “semi-retirement.”
- McGuire noted on January 10, 2024, that he had ceased using his job title as it no longer matched his contributions.
- By April 29, 2024, discussions among Gill, Cleveland, and McGuire revealed plans of leaving the company.
- Anthony Gallegos, the lead designer for Subnautica 2, expressed frustration over McGuire’s lack of feedback and engagement.
Krafton’s Legal Strategy
Krafton is constructing a narrative around the events leading up to their acquisition negotiations. The publisher claims it first became aware of the co-founders’ diminished roles on May 20. This timeline is critical in their assertion that the co-founders prioritized potential earnout earnings over their responsibilities to the studio. In response to questioning, Cleveland acknowledged that not informing Kim about his limited involvement was not justified.
Accusations of Unprofessional Conduct
Recently, the trio accused Krafton’s CEO of employing ChatGPT as a means to find ways to reduce their earnout payments. This claim adds another layer of intrigue to the ongoing legal battle.
As the dispute unfolds, the focus remains on the testimonies of Krafton’s former leadership and their obligations to Unknown Worlds. The implications of this case could significantly impact the future of both parties involved.



