{"id":10253,"date":"2025-11-18T12:33:10","date_gmt":"2025-11-18T12:33:10","guid":{"rendered":"https:\/\/www.jubi24.com\/?p=10253"},"modified":"2025-11-18T12:33:14","modified_gmt":"2025-11-18T12:33:14","slug":"court-filing-details-new-allegations-against-krafton","status":"publish","type":"post","link":"https:\/\/www.jubi24.com\/?p=10253","title":{"rendered":"Court filing details new allegations against Krafton"},"content":{"rendered":"<p><br \/>\n<\/p>\n<div data-module=\"content\">\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The ousted founders of Subnautica developer Unknown Worlds claim Krafton established a secret task force called &#8216;Project X&#8217; in an effort to delay <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2 <\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">and avoid paying a multi-million dollar earnout tied to its successful early access launch.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">In a pre-trial brief filed by Fortis Advisors on behalf of the Unknown World co-founders Charlie Cleveland, Max McGuire, and Ted Gill (the plaintiffs), Krafton CEO Changhan &#8216;CH&#8217; Kim is accused of using any means necessary to delay the title in an effort to avoid embarrassment and potentially even save his job.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The filing is the latest development in an very public legal spat between the former Unknown Worlds executive team and the studio&#8217;s parent company, Krafton.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The former <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" target=\"_self\" href=\"https:\/\/www.gamedeveloper.com\/business\/ousted-unknown-worlds-founders-former-ceo-sue-krafton-for-breach-of-contract\">claim they were unjustly fired<\/a><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> after Krafton chose to delay <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> to avoid paying that aforementioned earnout, despite the project purportedly being in good shape ahead of its proposed 2025 early access launch.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">Krafton, however, claims the three co-founders <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" target=\"_self\" href=\"https:\/\/www.gamedeveloper.com\/business\/-we-would-be-in-development-for-30-years-krafton-reiterates-that-unknown-worlds-founders-abandoned-subnautica-2\">downed tools after it acquired Unknown Worlds<\/a><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> and that <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> needs more time in the oven. It also said all three execs <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" target=\"_self\" href=\"https:\/\/www.gamedeveloper.com\/business\/krafton-claims-unknown-world-founders-stole-what-essentially-amounts-to-a-blueprint-for-subnautica-\">stole information that amounted to a &#8220;blueprint&#8221; for Subnautica<\/a><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> on their way out of the door.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">&#8220;Krafton fired the Founders and delayed the launch of <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> to avoid paying the earnout. That is what Plaintiff alleged in its complaint, and that is what the evidence will show at trial,&#8221; reads the pre-trial briefing, laying out the plaintiffs&#8217; case. &#8220;After Krafton\u2019s finance department, in May 2025, forecast a base-case earnout of $191 million, Krafton needed a way to &#8216;cancel the earn-out.'&#8221;<\/span><\/p>\n<p data-component=\"related-article\" class=\"RelatedArticle\"><span data-testid=\"related-article-title\" class=\"RelatedArticle-Title\">Related:<\/span><a class=\"RelatedArticle-RelatedContent\" href=\"https:\/\/www.gamedeveloper.com\/business\/overwatch-2-co-developer-redhill-games-is-making-layoffs\" target=\"_self\" data-discover=\"true\">Overwatch 2 co-developer Redhill Games is making layoffs<\/a><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">Krafton is accused of initially attempting to persuade Unknown Worlds&#8217; founders to delay <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> based on &#8220;now-abandoned claims&#8221; the title was not ready for release. When that failed, Krafton purportedly established a secret task force dubbed &#8216;Project X&#8217; with a singular mandate: either make a deal with the founders over the earnout or execute a takeover of Unknown Worlds.\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">Slack messages between Krafton CEO CH Kim and Unknown Worlds newly-appointed CFO Richard Yoon included in the pre-brief (and posted below) appear to show the pair discussing the prospect of a takeover.\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\">\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">In addition, the plaintiffs claim Kim had become frustrated with a contract that entitled Unknown Worlds&#8217; executive and development team to major earnouts. They state Kim understood it had become a &#8220;bad deal&#8221; for Krafton that could diminish the company&#8217;s &#8220;corporate value&#8221; and result in the CEO being viewed as a &#8220;pushover.&#8221;\u00a0<\/span><\/p>\n<p data-component=\"related-article\" class=\"RelatedArticle\"><span data-testid=\"related-article-title\" class=\"RelatedArticle-Title\">Related:<\/span><a class=\"RelatedArticle-RelatedContent\" href=\"https:\/\/www.gamedeveloper.com\/business\/ubisoft-says-ai-generated-placeholder-artwork-slipped-into-anno-117-pax-romana\" target=\"_self\" data-discover=\"true\">Ubisoft says AI-generated placeholder artwork &#8216;slipped&#8217; into Anno 117: Pax Romana<\/a><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">&#8220;Kim expressed his frustrations to Charlie Cleveland at a May 20 meeting in Los Angeles. He told Cleveland that paying the &#8216;earnout&#8217; could cause &#8216;the value of the studio&#8217; to &#8216;drop significantly,&#8217; and that &#8216;he, as the person responsible for the investment, would have to take responsibility,'&#8221; reads the pre-brief.\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">&#8220;Kim later told a colleague that if Cleveland had &#8216;looked sorry&#8217; when Kim told him this, he &#8216;wouldn\u2019t have th[e] thought&#8217; to take away the earnout.&#8221;\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The pre-brief notes that Kim&#8217;s contract as Krafton CEO is up for renewal in 2026 and claims the situation had become &#8220;personal&#8221; for him. It also states that Kim asked ChatGPT for advice on how to avoid paying the earnout. The generative AI tool reportedly told Kim it would be &#8220;difficult to cancel&#8221; the payout.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">&#8220;Not only was Krafton\u2019s bottom line at stake; the earnout was a threat to Kim&#8217;s job. Krafton thus took action to neutralize the threat of paying the earnout,&#8221; continues the pre-brief.\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">After that realisation sunk in, Krafton and Kim are accused of terminating the plaintiffs by falsely accusing them of attempting to proceed with the &#8220;premature&#8221; release of <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">. The pre-brief, however, states that during the discovery phase of the legal battle, Krafton CFO and corporate designee Yoon &#8220;could not name a single Krafton employee who actually thought the game was unready for release.&#8221;\u00a0<\/span><\/p>\n<p data-component=\"related-article\" class=\"RelatedArticle\"><span data-testid=\"related-article-title\" class=\"RelatedArticle-Title\">Related:<\/span><a class=\"RelatedArticle-RelatedContent\" href=\"https:\/\/www.gamedeveloper.com\/business\/microsoft-releases-xbox-game-publishing-guide-make-it-easier-for-devs-to-ship-on-xbox\" target=\"_self\" data-discover=\"true\">Microsoft releases Xbox Game Publishing Guide to help devs ship on Xbox<\/a><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The plaintiffs also note that, following an internal milestone review on May 27, 2025, Krafton creative director Hyeon-gyu Park agreed that <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><span class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_italic\">Subnautica 2<\/span><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"> should launch into early access in August 2025 as previously planned. It&#8217;s claimed he told Kim that firing Gill would &#8220;add two years to the length of the development period.&#8221;\u00a0<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">Ultimately, the legal team representing Cleveland, McGuire, and Gill asserts that Krafton has failed to provide a clear and consistent justification as to why the trio were fired and is demanding all three be restored to their positions at Unknown Worlds.<\/span><\/p>\n<p class=\"ContentParagraph ContentParagraph_align_left\" data-testid=\"content-paragraph\"><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">The lawsuit brought by Fortis Advisors on behalf of the former Unknown Worlds executives is expected to be tried starting on November 17, 2025, at the Delaware Chancery Court. <\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\"><a class=\"ContentText-BodyTextChunk ContentText-BodyTextChunk_link\" target=\"_blank\" href=\"https:\/\/www.scribd.com\/document\/950200391\/Public-Version-Plaintiff-s-Pre-Trial-Brief\">We have made the complete pre-brief available to view on Scribd<\/a><\/span><span class=\"ContentText ContentText_variant_bodyNormal\" data-testid=\"content-text\">.<\/span><\/p>\n<\/div>\n<p><a href=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;version=v18.0\">https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;version=v18.0<\/a><br \/>\n<br \/><br \/>\n<br \/><a href=\"https:\/\/www.gamedeveloper.com\/business\/krafton-ceo-accused-of-forming-secret-taskforce-project-x-to-seize-control-of-unknown-worlds\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The ousted founders of Subnautica developer Unknown Worlds claim Krafton established a secret task force called &#8216;Project X&#8217; in an effort to delay Subnautica 2 and avoid paying a multi-million dollar earnout tied to its successful early access launch. In a pre-trial brief filed by Fortis Advisors on behalf of the Unknown World co-founders Charlie &#8230; <a title=\"Court filing details new allegations against Krafton\" class=\"read-more\" href=\"https:\/\/www.jubi24.com\/?p=10253\" aria-label=\"Read more about Court filing details new allegations against Krafton\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":10254,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"","fifu_image_alt":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-10253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/www.jubi24.com\/wp-content\/uploads\/2025\/11\/Court-filing-details-new-allegations-against-Krafton.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10253"}],"version-history":[{"count":1,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10253\/revisions"}],"predecessor-version":[{"id":10255,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/posts\/10253\/revisions\/10255"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=\/wp\/v2\/media\/10254"}],"wp:attachment":[{"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.jubi24.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}