A lawsuit against Fenix Games has come to an amicable conclusion. Mythical Games announced that its lawsuit against fellow Blockchain game publisher Fenix Games has ended amicably between the two companies.
The lawsuit was initially announced in December 2022, with Mythical accusing its former executives Rudy Koch, Matthew Nutt, and Chris Ko of diverting funds dedicated towards a different venture towards Fenix Games while still being employed at their former studio.
This was seen as a direct violation of trust and a misuse of resources intended for Mythical Ventures, a fund to support blockchain game development
According to GamesBeat, while employed at Mythical Koch, Nutt, and Ko were in charge of developing plans for Mythical Ventures, a fund dedicated to help Blockchain games break into the market. This included securing investors for the fund. In the press release, Cypher Capital and Phoenix Group were among the group of investors named.
Then Koch, Nutt and Ko had abruptly quit Mythical in November 2022, before announcing the creation of Fenix Games a short time later, alleging to have acquired $150 million for Fenix with the help of Phoenix Group and Cypher Capital.
“You can think of us as like a VC fund,” said Ko in a previous interview with GamesBeat. “…We’re actually going to start off with a huge base of capital to invest in those studios. We’re also looking to use our balance sheet to acquire a bunch of existing games in the Web2 space to build a portfolio. And that will be the right base for our portfolio.”
According to the press release, it was revealed that Fenix had failed to raise the previously announced $150 million. Additionally, it was noted that neither Cypher Capital or Phoenix Group had contributed towards those funds. Both companies have settled amicably, but the agreement has remained strictly confidential.
As for Koch, Ko, and Nutt, it was noted that they were no longer working at Fenix or affiliated with Phoenix Group and Cypher Capital. It’s currently unknown who will step up to take their roles.