The ousted founders of Subnautica developer Unknown Worlds claim Crafton created a secret task force called “Project X” to hold up Subnautica 2 and avoid paying out the multimillion-dollar profits associated with a successful Early Access launch.
The pre-trial brief filed by Fortis Advisors on behalf of Unknown World co-founders Charlie Cleveland, Max McGuire and Ted Gill (plaintiffs) accuses Krafton CEO Changhan “CH” Kim of using any means necessary to delay title in an attempt to avoid embarrassment and possibly even save his job.
The lawsuit is the latest development in a public legal spat between former Unknown Worlds executives and the studio's parent company Krafton.
former claim they were unfairly fired after Crafton decided to postpone Subnautica 2 to avoid paying the aforementioned fee despite the project supposedly being in good shape ahead of its supposed Early Access launch in 2025.
Crafton, however, claims that the three co-founders knocked down instruments after acquiring the Unknown Worlds and this Subnautica 2 needs more time in the oven. It was also said that all three leaders stole information that was a “blueprint” for Subnautica. on the way out the door.
“Crafton fired the Founders and delayed the launch Subnautica 2 so as not to pay wages. That is what the plaintiff alleged in his complaint, and that is what the evidence will show at trial,” the preliminary briefing outlining the plaintiffs’ case reads. “After Krafton's finance team projected base case earnings of $191 million in May 2025, Krafton needed a way to 'reverse the payout.'
Crafton is accused of initially trying to convince the Unknown Worlds founders to shelve the project. Subnautica 2 Based on “now abandoned claims”, the game was not ready for release. When this failed, Crafton allegedly created a secret task force, dubbed “Project X”, with a specific mandate: either make a deal with the founders for profits or carry out a takeover of the Unknown Worlds.
Slack messages between Krafton CEO C. Kim and newly appointed Unknown Worlds CFO Richard Yun, included in the preview summary (and posted below), appear to show the pair discussing the prospect of a takeover.
In addition, the plaintiffs claim that Kim was disappointed by the contract, which gave the head and development team of Unknown Worlds the right to large profits. They claim that Kim understood that this was a “bad deal” for Krafton that could reduce the company's “corporate value” and lead to the CEO being viewed as a “dummy.”
“Kim expressed his disappointment to Charlie Cleveland at a meeting on May 20 in Los Angeles. He told Cleveland that issuing the “payout” could cause the “studio's value” to “fall significantly” and that “he, as the person responsible for the investment, would have to accept responsibility,” according to the preliminary description.
“Kim later told his colleague that if Cleveland had 'looked sorry' when Kim told him this, he 'wouldn't have it.'[e] I thought I’d take my earnings.”
The preview notes that Kim's contract as Krafton CEO will be renewed in 2026 and claims the situation has become “personal” for him. It also states that Kim contacted ChatGPT for advice on how to avoid paying the reward. The generative artificial intelligence tool reportedly told Kim it would be “difficult to reverse” the payout.
“It wasn't just Crafton's profits that were at stake; earnings posed a threat to Kim's job. Accordingly, Crafton took action to neutralize the earnings threat,” the preliminary review continues.
Once this was realized, Crafton and Kim are accused of terminating the plaintiffs' activities by falsely accusing them of attempting to proceed with a “premature” release. Subnautica 2. However, the preview states that during the discovery phase of the litigation, Krafton CFO and designated corporate representative Yoon “could not identify a single Krafton employee who truly believed the game was not ready for release.”
Plaintiffs also note that following an internal substantive review on May 27, 2025, Krafton Creative Director Park Hyun Kyu agreed that Subnautica 2 should go into early access in August 2025, as previously planned. He is said to have told Kim that Gill's dismissal would “add two years to the length of the development period.”
Ultimately, the legal team representing Cleveland, McGuire and Gill argue that Crafton failed to provide a clear and consistent justification for why the trio was fired and is demanding that all three be reinstated to their positions at Unknown Worlds.
The lawsuit, filed by Fortis Advisors on behalf of former Unknown Worlds executives, is expected to begin on November 17, 2025 in the Delaware Chancery Court. We've made the full preliminary brief available to view on Scribd..
