What started as whispers of trouble at Intrepid Studios has exploded into a full-blown catastrophe for Ashes of Creation, the ambitious MMORPG that raised millions through Kickstarter promises back in 2017. Recent revelations paint a picture far grimmer than initial reports of layoffs and a founder resignation. With mounting lawsuits over unpaid debts, staff left without final paychecks or severance, and allegations of a hidden private equity takeover, the situation increasingly resembles a classic rug pull scheme, where developers hype a project, extract funds, and abruptly shut down, leaving backers empty-handed. The whole situation does not look good at all.
The game's early access launch on Steam in December 2025 now looks like a desperate last-minute revenue grab rather than a genuine milestone. Pulled from the platform just two months later amid mixed reviews criticizing its alpha-state bugs and unfinished features, the release came hot on the heels of undisclosed financial woes. Insiders and public records show Intrepid was already drowning in debt by then, including a lawsuit from Sada Systems filed December 1st, 2025, for $852,630 in unpaid Google Cloud services dating back to a September 2022 agreement. Services were canceled in April 2025 after repeated demands went ignored, with the suit claiming breach of contract, unjust enrichment, and promissory estoppel. That's on top of an earlier complaint from Aetna Life Insurance Company in June 2025, seeking $81,004 for unpaid insurance premiums under claims of open book account and account stated. Combined, these debts exceed $933,000, a staggering sum for a studio that Sharif repeatedly claimed was self-funded without external investors or a board.
By late January 2026, the house of cards finally collapsed. Sharif announced his resignation on Discord January 29th, citing loss of control to the board and ethical disagreements with their actions, which included issuing WARN notices for mass layoffs. Senior leadership followed suit, and on January 31st, a confusing email informed the entire staff of 123 permanent closures under the WARN Act. Yet, as former director of communications Margaret Krohn detailed in a heartfelt X post, none received final paychecks, 60 days' notice pay, PTO payouts, or other owed compensation. "What is being done is illegal," Krohn replied to a concerned fan, emphasizing the human cost to a team she described as family. She's now organizing a job fair for ex-employees, pleading with recruiters to recognize their talent amid the wreckage.
Streamers and content creators like DustyWhy, who poured 3,500 hours into promoting the game, shared leaked emails confirming wages, 401k matches, and benefits were withheld. "Ashes of Creation may very well be dead," he posted on X, encapsulating the shock rippling through the community. Krohn defended Sharif as "kind, generous, and looked out for us," but the narrative from sources like Bellular News suggests deeper deception. The video alleges a private equity group quietly assumed ownership, with plans to offshore production before opting for full shutdown. This contradicts Sharif's long-standing claims of independence, fueling scam accusations. Kickstarter backers, who funded $3.22 million on promises of a dynamic world-shaping MMO, feel particularly betrayed. The original pledge included a full refund if the game failed to launch, yet with servers still online but development halted, refunds remain elusive. Steam buyers are pursuing Valve for returns, but older backers face slim odds, drawing parallels to failed projects like Chronicles of Elyria.
The community sentiment has turned bitter. On Reddit and X, players call the early access as a "scumbag move" to scam more funds before the inevitable pull. Frustrations with rampant RMT, bots, and cheating during the brief EA window only compound the sense of betrayal. As one commenter put it, "The rug has officially been pulled." The rushed launch, hidden debts, and abrupt end after years of hype and delays scream rug pull to many, where funds were siphoned without delivering the promised product. Sharif has hinted at upcoming legal filings to clarify his side however he has been silent the last few days, but with the studio effectively shuttered and staff scrambling, trust is shattered anyways.
All of this isn't just a development hiccup; it's a cautionary tale for crowdfunded games that teaches us the lesson once again, do not pre-order games and buy into wishes and hype. Wait for developers to deliver good content or else you won't get it. Ashes of Creation promised innovation in a genre starved for it, with player-driven economies and node systems. Instead, it leaves behind a trail of unpaid workers, furious backers, and unanswered questions about where the money went. As lawsuits proceed and investigations loom, the full extent of the mismanagement may yet unfold. There are also small rumors of developers taking a hand in the RWT and unbanning cheaters, however that is a tale for another day. For now, players are advised to seek refunds if possible on Steam, while the MMO community mourns what could have been and vows greater scrutiny for the next big promise. Trashes And Stagnation is now effectively in the dirt. Maybe the Riot MMO is the last hope for MMO gamers? Only time will tell.