Bloomberg report: The former leadership of Unknown Worlds is suing South Korean publisher Krafton, claiming the company sabotaged Subnautica 2 to avoid paying a $250 million earnout.

According to a newly unsealed lawsuit, Krafton allegedly dismissed CEO Ted Gill and founders Charlie Cleveland and Max McGuire after they presented strong revenue forecasts that would trigger the massive bonus. The complaint accuses Krafton of delaying Subnautica 2 — originally slated for early access in 2025 — by halting marketing efforts, pulling resources, and pressuring the team to push the release to 2026.

Krafton Lawsuit Over Subnautica 2 Explained

Krafton denies the allegations, citing “slow and underwhelming progress” and claiming the executives “abandoned their responsibilities.” The lawsuit counters, stating internal tests and external previews praised the game’s readiness, with millions of Steam wishlist adds signaling strong demand.

The dispute centers on Krafton’s 2021 acquisition of Unknown Worlds for $500 million, with an additional $250 million tied to performance milestones. Former leaders now seek damages, while Krafton has extended the bonus period and offered a reduced $25 million pool for employees.

Journalist Jason Schreier, who shared details of the lawsuit, noted that the situation stemmed from the “COVID fever,” when companies like Krafton were spending too aggressively on various acquisitions.

Subnautica 2 remains one of the most anticipated survival titles, but the legal battle threatens to overshadow its future.