Legal Battle Erupts Over Subnautica 2 Delays and Bonuses

WILMINGTON, Del. — A legal dispute has emerged between the founders of game development studio Unknown Worlds and its parent company, Krafton, over the delayed release of Subnautica 2 and alleged financial misconduct. The case, which is set to begin trial on November 17, 2025, centers around claims that Krafton delayed the game to avoid paying a multi-million dollar earnout to the former executives.

The pre-trial brief, filed by Fortis Advisors on behalf of Unknown Worlds co-founders Charlie Cleveland, Max McGuire, and Ted Gill, alleges that Krafton CEO Changhan ‘CH’ Kim established a covert task force dubbed ‘Project X’ to manipulate the launch schedule. The original early access release was slated for 2025. The plaintiffs claim Kim is desperate to avoid embarrassment and maintain his position, asserting that he used any means necessary to push back the game’s launch.

In May 2025, Krafton’s finance team predicted a $191 million earnout if the game launched successfully. From that moment, the plaintiffs contend that the company sought ways to ‘cancel the earn-out,’ including firing the founders. The brief suggests that Krafton initially approached the executives about delaying the launch based on unfounded concerns that the game was not ready for release.

When the founders resisted, according to the filing, Krafton allegedly resorted to deceptive tactics. Internal communications between Kim and the newly appointed CFO of Unknown Worlds, Richard Yoon, discuss the possibility of a takeover if the negotiations failed. Kim purportedly feared losing authority at Krafton if he agreed to pay out the earnout.

The plaintiffs note that during meetings, Kim openly expressed concerns about how paying the earnout could damage the studio’s value and his reputation. The brief further reveals that Kim attempted to seek advice from ChatGPT on how to navigate the financial obligations, with the AI suggesting that cancelling the earnout would be complicated.

Following these events, the plaintiffs were dismissed from their positions, accused of trying to release Subnautica 2 prematurely. However, during discovery, it was revealed that no Krafton employees believed the game was unready. On May 27, 2025, the creative director had already agreed that the game could proceed to early access.

As the trial date approaches, Krafton has publicly denied the allegations, claiming the founders engaged in misconduct that justified their termination. The outcome of the legal proceedings is anticipated to provide clarity on the contractual obligations and the leadership dynamics within Krafton and Unknown Worlds.