Former executive sues Krafton for $250 million

Krafton faces a $250 million lawsuit from former the Unknown Worlds CEO over contractual disputes and the delay of an upcoming game release.

Subnautica 2, developed by Krafton subsidiary Unknown Worlds [UNKNOWN WORLDS]

Krafton is being sued for $250 million by the former CEO of its U.S.-based subsidiary, Unknown Worlds.

In a disclosure filed Thursday, Krafton said that Fortis Advisors LLC, representing former shareholders of Unknown Worlds Entertainment, filed a lawsuit on July 10 in the Delaware Court of Chancery. The complaint demands the enforcement of contractual obligations and compensation for damages.

The claims include earn-out payments stipulated in the share purchase agreement, additional damages to be proved in court and a court order mandating the fulfillment of contractual obligations. The total claim amounts to $250 million.

A dispute between Krafton and Unknown Worlds’ former management escalated earlier this month when Krafton delayed the early access release of the subsidiary's upcoming title Subnautica 2 and dismissed its executive leadership. Krafton postponed the release — originally scheduled for later this year — to next year and removed founding members from their management roles.

On July 11, Krafton posted a statement to English-language website explaining that the absence of core leadership within Unknown Worlds had repeatedly caused confusion in operations and significantly delayed the overall project timeline. It also stated that the early access version currently lacks sufficient content volume.

The post appeared to respond to a claim made the same day by former CEO Charlie Cleveland, who disclosed the lawsuit on social media and asserted, “We know in our souls that the game is ready for early access.”

Krafton said in response, “We are disappointed that the plaintiffs have chosen to pursue litigation for personal financial gain,” but added, “We welcome the opportunity to set the record straight.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff. BY KIM MIN-JEONG [yoon.soyeon@joongang.co.kr]