Unknown Worlds co-founder Charlie Cleveland allegedly put together a ruthless plan to fight former employer Crafton in court, who admitted the legal dispute would cost CEO Changhan Kim his job, and sought to capitalize on negative stereotyping of South Korea.
In a new document entitled “Litigation Assistance,” authored by Cleveland and introduced into evidence during (quite revealing) lawsuit between Crafton and the three co-founders of Unknown Worlds (Charlie Cleveland, Max McGuire and Ted Gill) the publisher was fired earlier this yearTaking the case to trial in Delaware is expected to prevent Crafton from calling Koreans “sadists.” […] assholes.”
Exhibition (posted on Bluesky by Game Developer News Editor Chris Kerr) includes notes allegedly taken by Cleveland after conversations with former Nexon CEO Owen Mahoney and other confidants.
When asked about the document during cross-examination, Cleveland confirmed it was written on June 28, 2025 — before Crafton fired him — but said the words “are not my thoughts.” Instead, Cleveland stated that he “literally wrote down” what was said to him during the conversations.
When pressed, he repeated this statement, saying that most of these notes were “what Owen told us” and “have nothing to do with my opinion at all.” However, he admitted that he decided to document these opinions in his notes.
In a huge stream of thoughts entitled “The Owen Mahoney Memos” (Jun 28, 25), the document indicates that Krafton would struggle to win the case if it went to court in Delaware.
“Delaware? Oh, they're fucked up. You don't even need a Korean lawyer. Dissolution of any kind (marriage, company) is just a transaction,” the exhibition says. “Stop worrying about what others think of you. When there's big money on the line, big knives will come out. This is the toughest time in video games since the 80s. It will cost CH his job. And the chairman will be happy to throw him under the bus.”
“Delaware will say it's a bunch of sadistic Korean idiots.”
The document also suggests that Cleveland, McGuire and Gill could start a new company and rehire some of the employees who are leaving Krafton and Unknown Worlds due to low morale.
“Once we are fired, we will be able to take care of those employees who are suicidal. Create a new company and hire them. Patrick Sutherland[sic] did this with EA (Landmark). So Owen put him on the line while he started his new company. He did the right thing by his employees. He bought their undying loyalty,” the document further states. (Editor's note: This comment refers to Embark Studios Patrick Soderlund.)
“[…] All our employees can resign within 6 months. We can rehire them. Don't lose sleep over this. Don't worry about what you can't control. It will be much worse.”
Ultimately, the document begins to negatively characterize Koreans and indicates that former leaders may benefit as a result.
“Korea is Joe Pesci country. Charming, not yet incredible. [sic] nasty. It quickly goes up to 11. No filter,” he adds. “It can be emotionally draining, especially for Western men. Men can solve problems better and be less emotional. [sic] biological reasons for this. Making games is about solving problems.
“Korea is surrounded by enemies who want to kill it. These are fighters. She's small and nasty. Every year some major movie star commits suicide over sex, drugs or something else, persecuted by the press. Wear your safety helmet and keep your cool, but don't let it scare you away. You will receive 250 million dollars. Put a wall around your emotions.”
“Delaware will say that these are a bunch of sadistic Korean idiots (like Samsung – John Pleasance). [sic] like villains, and the job is done.”
Again, these remarks were placed under the heading “Owen Mahoney's Notes.”
Crafton believes that the above document, which was again drawn up before Cleveland's dismissal, shows that he had no genuine interest in working on Subnautica 2 or the leading Unknown Worlds.
“Plaintiffs who asked to be reinstated to work they did not perform stated they were not interested in it and had previously denied requests that they return and do the work. We look forward to a decision,” the company said in a statement. “We've made incredible progress over the past few months, and we're excited to share it with all Subnautica fans.”
The trial ended on November 19, 2025. Both sides will now submit post-trial briefings. A post-trial hearing is scheduled for January 9, 2026. The court's decision will follow.
Update November 20: This story has been updated to indicate the correct spelling of Patrick Soderlund's name.
