A legal dispute has erupted between Krafton and three former executives of its subsidiary, Unknown Worlds Entertainment (UWE), over the development of Subnautica 2. The primary points of contention are project delays and the distribution of earn-out bonuses.

Krafton released an official statement claiming that the three former UWE executives—Charlie Cleveland, Max McGuire, and Ted Gill—failed to uphold their commitments to lead and actively participate in the development of Subnautica 2. Krafton stated that at the time of the UWE acquisition, in addition to the initial purchase price of $500 million (approx. 688.3 billion KRW), they allocated approximately 90% of the potential $250 million (approx. 344.1 billion KRW) earn-out bonus to these former executives.

Krafton pointed out that the former executives' avoidance of responsibility led to significant delays in the development of Subnautica 2. The early access release, originally scheduled for early 2024, was postponed. Specifically, Krafton added that after the failure of Moonbreaker, they requested Charlie Cleveland to focus entirely on Subnautica 2, but he prioritized a personal film project instead of participating in game development. Krafton explained that they decided to replace the leadership team, determining that the absence of core leadership caused project chaos and delays.

Meanwhile, Charlie Cleveland strongly refuted Krafton's claims, calling them baseless. He denied the allegation that the three individuals intended to monopolize the earn-out bonuses, stating that the funds were intended to be shared with the team. Cleveland emphasized that Subnautica is his life's work and that he would never abandon the team or the project, confirming that he has initiated legal action against Krafton.

The two sides hold starkly different views regarding the distribution of earn-out bonuses and the level of development participation by the former executives. Regarding Krafton's claim that 90% of the earn-out was allocated to the former executives, Charlie Cleveland countered by pointing out that those terms were originally set by Krafton. However, the truth remains unclear. As no concrete data regarding the extent of the three executives' participation or the current state of the game's completion has been disclosed, it appears that the validity of each side's claims will be determined in court.