Subnautica Co-Founder's Legal Battle Against Krafton

The Complexities of a Delayed Sequel and Legal Allegations

As the release of the eagerly awaited Subnautica 2 faces prolonged delays, co-founder of Unknown Worlds Entertainment, Charlie Cleveland, alongside others, has taken legal action against their parent company, Krafton, which joined them in 2021.

Just last week, Krafton relieved Cleveland, Ted Gill, and Max McGuire from their leadership positions at Unknown Worlds. This changeover happened right before Krafton would have been responsible for a $250 million bonus to the company’s leaders, as reported by Bloomberg.

The legal move comes on the heels of Krafton's accusations, suggesting that Cleveland and other executives have neglected their duties. They assert that this led to serious postponements in Subnautica 2's early access debut, now forecasted for early 2026. Krafton also mentioned that about 90% of this bonus sum had already been granted to the founders.

In a public statement, Cleveland categorically dismissed these allegations, arguing that Subnautica 2 is actually ready for early access and that the claims of neglect and financial misdeeds are unfounded. Highlighting his dedication, Cleveland said, "Creating Subnautica has been my life’s mission, and I would never willingly forsake it."

He strenuously denied suggestions that he and his colleagues had any intention of withholding the bonus, stating, "I joined this industry out of passion, not greed. We've consistently shared profits with our team even after selling the studio, and we will continue to honor the earnout and bonuses."

While details of the lawsuit remain uncertain—including the jurisdiction, named defendants, or specific legal claims—the release of Subnautica 2 in early access remains planned for 2026. However, the unfolding legal situation may cause further setbacks.