The trial that will decide the future of hit online game franchise Subnautica has ended with a quantity of severe allegations made by Korean mega corp Krafton towards the ousted former bosses of developer Unknown Worlds.
Unknown Worlds co-founders Charlie Cleveland, Max McGuire, and Ted Gill sued Krafton, claiming the firm fired the trio to keep away from paying an allegedly owed $250 million bonus, regardless of, the founders say, Subnautica 2 being prepared for an early entry launch this yr. They now need to be reinstated at Unknown Worlds.
Krafton claims the co-founders had already downed instruments lengthy earlier than they had been fired, whereas additionally insisting Subnautica 2 was not prepared for launch this yr. Krafton additionally alleges the executives stole info relating to Subnautica whereas nonetheless at the firm in anticipation of subsequent authorized motion.
Former CEO of Unknown Worlds, Charlie Cleveland, appeared in a Delaware courtroom on Wednesday, November 19 to reply questions from Krafton’s authorized workforce as half of a cross examination.
Throughout the trial, a doc titled ‘Litigation Assist’ was proven to the courtroom. In it are notes written by Cleveland relating to recommendation given to him by Owen Mahoney, who was CEO and President of South Korean online game firm Nexon, for a decade (2014–2024), as half of an alleged plan drawn up by the Unknown World co-founders to tackle Krafton in courtroom.
The notes, dated June 28, 2025, include a quantity of phrases Krafton alleged had been “racist views towards Korea and Korean individuals.” Throughout cross examination, Cleveland admitted writing the notes, however insisted they had been a transcription of recommendation issued by Mahoney solely, and not phrases he himself stated. IGN has requested Mahoney for remark.
“So these are usually not my phrases,” he stated. “These are all transcriptions from what we had been suggested by — suggested to do. Like these are phrases popping out of two different individuals’s mouths not mine.”
And: “Once more each single phrase as far as I do know in this doc is one thing that Owen stated, not what I stated.”
And: “… I am writing down what Owen instructed us. So it has nothing to do with my opinions in any respect.”
Key excerpts from the ‘Litigation Assist’ doc, reviewed by IGN, embrace:
“Delaware? Oh, they’re f***ed. You don’t even want a Korean lawyer.”
“We simply want a listing of issues from them. We’re taking part in the home’s cash and we’re the house workforce. We don’t want to fear about these guys or our popularity. Historical past will keep in mind that Krafton was unhealthy. Even the Reddit crowd hates them as a result of of Darkish & Darker.”
“Korea — they’re the Joe Pesci of international locations. Charming till they’re unimaginable nasty. It goes to 11 shortly. No filter. It may be emotionally draining coping with this, particularly as male westerners. Males could be extra problem-solvers and deliver much less emotion — they’re organic causes for this.”
“It’s small and nasty. Yearly some large movie star commits suicide as a result of of intercourse, medication or one thing, hounded by press.”
“Delaware will say this can be a bunch of Sadistic Korean assholes (like Samsung — John Pleasance). They’ve solid as villains and it’s completed.”
Krafton accused Cleveland of writing in the notes that Delaware courts might be disadvantageous to Krafton, “suggesting an absence of judicial equity towards overseas corporations.” Krafton additionally alleged that Cleveland “referenced racist views towards Korea and Korean individuals, speculating on organic causes for Korean males to be ‘much less emotional.’”
Krafton stated Cleveland’s notes “devolve into name-calling and prejudicial views, suggesting biases that might forestall Krafton from receiving honest remedy in a Delaware courtroom.”
Krafton additionally alleged that in the notes, Cleveland “outlines a plan to pursue $1 billion by means of litigation — a determine far exceeding the $250 million earnout initially agreed upon.”
“Don’t simply go for the earn-out,” the notes learn, “go for $1B in emotional misery and harm. That is the mindset we want to have. Nuclear.”
Once more, throughout the trial Cleveland responded to the doc to say: “These are all transcriptions from what we had been suggested by — suggested to do. Like these are phrases popping out of two different individuals’s mouths not mine.”
“Remarkably, the notes made public seem to be a set of actual time messages, centered on and prepping litigation even earlier than his employment at UW was terminated,” Krafton stated in an announcement issued to IGN.
“In additional exchanges that increase questions on Cleveland’s character, he repeated racist views towards Koreans and repeatedly mentioned making an attempt to get as a lot cash as he might from Krafton.
“Additional, in sworn testimony on Wednesday, Cleveland reiterated that he was not in creating video games for Unknown Worlds, thought of himself semi-retired, wasn’t really working laborious on the Subnautica film, regarded to delete his personal ChatGPT data and flirted with beginning a brand new firm. The testimony got here from cross examination the place he was typically requested to reply to his prior statements.”
On this level, right here’s the related alternate between Krafton’s legal professional, John Del Monaco, and Unknown Worlds co-founder Charlie Cleveland, throughout cross-examination at the trial:
Q. On the right-hand facet you wrote, “Fast reminder: test your organization ChatGPT account to be certain there’s nothing incriminating there.” Proper?
A. Sure.
Q. So in addition to indiscriminately downloading all of the firm’s recordsdata that you would get your palms on, you had been additionally checking to see what incriminating info could be on the market; proper?
A. Like I stated, I needed to be certain we knew how they had been going to assault us.
Q. You had been getting forward of the sport is your testimony?
A. We needed to look and see what was up there, sure.
Later in the day, Krafton referred to as on Aaryn Flynn, present CEO of Inflexion Video games, maker of Nightingale, and former Basic Supervisor at Mass Impact and Dragon Age developer BioWare, as an business skilled witness. Flynn testified that the actions of the former Unknown Worlds bosses weren’t in preserving with business norms, and they didn’t meet the expectations the business would count on of individuals in their roles.
With the trial now at an finish, January 9, 2026 was set as a post-trial argument date. Following that, the supply of the judgment is anticipated. All the whereas, the two events might settle out of courtroom.
“We’re grateful to the courtroom for its thorough dedication to understanding the information, and we’re assured we have now demonstrated our dedication to delivering the finest sport attainable to our followers,” Krafton stated. “We made clear to the courtroom that we had been compelled to make a change when the former leaders confirmed little curiosity in the growth of Subnautica 2, which has all the time been our prime precedence.
“Now, this trial comes down to plaintiffs asking to be restored to jobs they weren’t doing, stated they’d no curiosity in doing, and had beforehand declined requests that they arrive again and do these jobs. We glance ahead to receiving a choice. We now have made unimaginable progress in the previous few months, and we’re excited to share with all the Subnautica followers.”
Amid the high-profile authorized spat, fan concern over the destiny of Subnautica 2 stays, with many inside the sport’s group apprehensive that it’ll not meet their expectations due to the authorized drama surrounding it — irrespective of when it’s launched.
Wesley is Director, Information at IGN. Discover him on Twitter at @wyp100. You possibly can attain Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.