Important Message for all IncGamers Readers!

From 26 May this site is no longer being updated. Why? Because we have a new home for PC gaming goodness.

The IncGamers team bas now moved to PCInvasion.com which is all shiny and new.

If you have an IncGamers.com site account it will be active on the new site. Head there now for our welcome post.

Note: All IncGamers content will remain live on this site but the main page will change shortly.

38 Studios is bankrupt and under FBI investigation

7 Jun 2012 by Peter Parrish
38 Studios is bankrupt and under FBI investigation

With all the E3 2012 business going on, it’d be easy to forget about the ever-growing whiff of scandal around ’s and its ill-fated MMO project ‘Copernicus’. Troubles began in May for the Rhode Island based studio when it failed to make a basic loan repayment to the state of around $1.125 million USD ( had relocated to the area with the promise of a $75 million USD loan).

Later in the month the entire workforce was unceremoniously laid off by email, and a few staff members began to uncover nasty surprises like second mortgages and a lack of health coverage.

It has now been revealed that (to no-one’s surprise) 38 Studios has declared bankruptcy. The company has ceased operations and will be liquidated. Court documents from the bankruptcy filing reportedly show ’38 Studios LLC’ owing between $100-500 million USD to over 1,000 creditors, mostly situated in Rhode Island. Unfortunately, the company’s remaining assets are only listed as $10-50 million USD, so unsecured creditors are unlikely to see any money.

A formal investigation has been launched into 38 Studios handling of its finances.

“The state police, the attorney general’s office, the U.S. Attorney’s office and the FBI are opening an investigation into 38 Studios, both the money that came from the state as well as the money that came from Bank Rhode Island,” Rhode Island State Police Col. Steven O’Donnell has said.

In somewhat more cheerful news, many of the staff who worked for 38 Studios subsidiary in Maryland (the team behind the bulk of ) have been rehired by under the umbrella of ‘ Baltimore’.

Source: wpri.com

Related to this story
Register an IncGamers account to post comments or use Disqus.
You can also post via a social network.