Ashes of Creation Investor Alleges Steven Sharif Commited Fraud, Details The Turmoil And Timeline Of Studio's Final Days

Why It Matters

The fallout highlights severe governance failures in high‑profile game development, threatening investor confidence and prompting industry‑wide scrutiny of MMO funding structures.

Key Takeaways

• Investor Jason Caramanis lost $12.5 million
• Sharif allegedly never invested personal funds
• CFO John Moore earned $500 K yearly salary
• Lawsuits filed; assets transferred to Robert Dawson

Pulse Analysis

The Ashes of Creation saga began as a highly anticipated MMO backed by more than $100 million from private investors, venture capital, and crowdfunding. Early hype centered on founder Steven Sharif’s reputation and promises of self‑funding, which attracted high‑net‑worth backers seeking exposure to a next‑generation sandbox world. However, the lack of transparent financial reporting and reliance on a single charismatic leader left the studio vulnerable to unchecked spending and strategic missteps, setting the stage for the eventual collapse.

Recent investigative videos by YouTube creator NefasQS, supported by documents from investor Jason Caramanis, allege that Sharif and CFO John Moore drew substantial salaries while the company’s books remained sealed for nine years. Allegations include a $500 K annual salary for Moore, Sharif’s refusal to inject personal capital, and a controversial maneuver to divert $3.7 million early‑access revenue to repay a personal mortgage, leaving payroll unfunded. The proposed rescue plan—requiring investors to reinvest 25 % of their stakes and slashing staff by up to 70 %—was rejected, prompting Sharif’s resignation and the studio’s shutdown.

The legal fallout is now unfolding, with multiple lawsuits from investors, former employees, and backers seeking class‑action status. The transfer of the Ashes of Creation intellectual property to investor Robert Dawson adds another layer of uncertainty about the game's future. For the broader gaming industry, this case underscores the importance of robust corporate governance, transparent financial disclosures, and realistic funding models for ambitious MMO projects. Stakeholders are likely to demand stricter oversight and clearer accountability mechanisms to protect capital and maintain consumer trust in large‑scale game developments.

Ashes of Creation Investor Alleges Steven Sharif Commited Fraud, Details The Turmoil And Timeline Of Studio's Final Days

By Joseph Bradford · Posted Feb 16, 2026 5:00 PM ET

Late last week, YouTube creator NefasQS released a rather damning video, in which he claims to have spoken with one of Ashes of Creation investors, Jason Caramanis. Caramanis, who earned his money through his work with MLM companies, primarily Jeunesse Global, claims to have lost $12.5 million through his investment in Intrepid Studios.

The video, which is over an hour long, and we first became aware of it on Friday afternoon, cites documents provided to NefasQS by Caramanis, and more, alleging that the health of Steven Sharif’s Intrepid Studios strayed on the edge of collapse for quite a long time.

Editor’s Note: As I mentioned on our forums over the weekend, we became aware of this video on Friday, but hesitated to report it as we were not familiar with NefasQS’ track record of reporting, instead opting to do our own due diligence. However, as more reporters we trust ran the information, including MOP’s Chris Neal and WCCFTech’s Alessio Palumbo (thanks for the link, Slapshot), as well as this morning’s video from Legal Mindset, we felt comfortable running this, even though it is now “late” by games‑reporting standards.

The video (as well as a subsequent livestream where Caramanis calls in and details even more info) pores over documents provided to the YouTube creator by Caramanis, who alleges the company raised over a hundred million dollars over its lifetime. NefasQS also alleges that, based on his own research of the documents Caramanis provided, Sharif himself never invested a dime of his own money, contrary to the public perception and statements that Ashes of Creation was being self‑funded by Sharif’s own fortune.

The video also claims that Sharif and Intrepid’s CFO (and Sharif’s partner), John Moore, took home a $500 K/year salary in payment for services to the MMO developer Sharif founded.

The video also breaks down a few other investors, including Tom Alkazin, who invested $2 million in the MMO project, as well as an alleged $80 million from Robert Dawson, whom Caramanis personally introduced to Steven Sharif.

NefasQS’s reporting also alleges that Sharif refused to release financial books and tax records for nine years, as well as the fact that there were zero board meetings called, which Caramanis also states to NefasQS that he was promised a board seat back in 2019.

Caramanis filed a lawsuit against Sharif for access to the company records, and only received the QuickBooks files thanks to Robert Dawson’s accountant, the video states. This was provided only a few days before NefasQS’ recent livestream, in which he talks on the phone with Caramanis about the Ashes collapse.

The video goes on to talk about the final days of Intrepid, including the actions by the board that Steven presumably referenced as ones he could “not ethically agree with or carry out.” Caramanis details to NefasQS that the plan was initially for each investor to inject 25 % of their original investment amount back into Intrepid in order to keep their current levels of equity. They also proposed laying off 60‑70 % of the staff in order to keep the company running, keeping the “skeleton crew” immediately after the studio imploded.

The proposal also would have kept Sharif as Creative Director for Ashes of Creation, but switched his payout to be dependent on company performance instead of ownership. In response, Steven demanded ownership equity, and when that was refused he resigned and, in Caramanis’ words to NefasQS during the livestream, Sharif then carried out an “act of sabotage,” specifically that a letter was sent from Commerce Bank to Valve to get the $3.7 million from the Early Access launch to pay off the loan on Sharif’s house. Meanwhile, this was the money Caramanis states was meant to go towards payroll on February 1st, and this alleged act by Steven is the reason why Intrepid’s laid‑off studio wasn’t paid.

Caramanis also states in the livestream that the Ashes of Creation IP and assets are now owned by Robert Dawson, who is exploring his options with regard to future development of the game.

Multiple lawsuits have been filed since Intrepid Studios closed up shop, and those are broken down by legal‑themed YouTube channel, Legal Minded. We spotted this video early this morning (though appreciate the reminder on the forums, Zorvan), in which the channel breaks down the various lawsuits that we know of as of now and what is possibly in store for Sharif, based largely on NefasQS’s reporting and Caramanis’ description of events. NefasQS himself has posted another video breaking down some new info and the lawsuits, including a letter sent by Caramanis’ legal team to Valve in connection to the letter sent by CommerceWest Bank at Sharif’s direction.

It stands to reason that we won’t know all the details of what went on behind the scenes (if we ever do) as the legal process begins. The victims, which do include the investors but most importantly the developers and the backers of the project, however, shouldn’t be lost here. In addition to the investor lawsuits, class‑action lawsuits are being talked about by backers, which Legal Minded, while it doesn’t give outright legal advice, does recommend to Kickstarter backers to start documenting their pledges and the statements Sharif has publicly said, and consider joining a class action against the MMO developer. However, the allegations by this investor, as well as all the documented proof we’re able to pore over thanks to NefasQS’ reporting, do paint a grim picture of how the studio was run over the last nine years, especially if it all proves out to be true in the coming weeks and months.