Investor Accuses Ashes of Creation Founder of Orchestrating $140 Million Fraud
Recent allegations against Steven Sharif, the founder of Intrepid Studios and the crowdfunded MMORPG Ashes of Creation, have raised serious concerns about a $140 million fraud scheme. These claims were made by investor Jason Caramanis during a revealing interview, painting a troubling picture of mismanagement and deception at the studio.
Background of the Allegations
Intrepid Studios collapsed shortly after its game launched on Steam Early Access, leaving backers and fans bewildered. Caramanis alleges that Sharif orchestrated a fraudulent scheme that spanned several years. As a seasoned entrepreneur, Caramanis claims he lost $12.5 million due to his investments in the project.
The Claims Against Steven Sharif
Central to the allegations, Caramanis asserts that Sharif never invested any personal funds into Intrepid Studios, despite his claims of contributing between $30 million and $60 million. According to Caramanis, financial records reveal that Sharif and Chief Financial Officer John Moore withdrew $500,000 annually in salaries while the company struggled.
Financial Mismanagement
Public reports indicated that Intrepid Studios raised between $109 million and $115 million. However, Caramanis states that this figure could actually be upwards of $140 million, accounting for various funding sources, including Kickstarter and loans. Notably, a significant sum came from Tom Alkazin, who invested his life savings in the project.
Investors at Risk
- Caramanis’s allegations point to multiple investors who suffered substantial losses.
- Robert Dawson, another key investor, injected approximately $80 million from 2022 to 2025.
- Alkazin, who also lost $2 million, has faced legal issues related to previous pyramid schemes.
Lack of Transparency and Governance
Caramanis insists that Sharif neglected investor demands for transparency. For nine years, Sharif allegedly failed to provide financial records or adhere to promised board meetings. Even a lawsuit seeking access to company records yielded no results, further complicating the situation.
The House and Financial Crisis
Sharif’s lavish lifestyle became a point of contention. Caramanis claims that a California mansion, from which Sharif livestreamed updates, was purchased with company funds, undermining their financial stability. By 2025, Intrepid Studios faced significant operational losses, reaching monthly expenses of $2.5 million.
Legal and Financial Troubles
Amid the financial crisis, Intrepid was unable to pay its debts, leading to a lawsuit from SADA Systems for nearly $852,630 in unpaid services. The situation worsened when Sharif allegedly misappropriated $3.7 million in Steam revenue intended for payroll, effectively dooming the company.
The Fallout
With the company unable to continue operations, Caramanis has indicated that multiple lawsuits against Sharif and others are expected. He claims Sharif’s actions could amount to fraud and federal crimes related to investor loans. There are discussions about continuing development for Ashes of Creation, but the future remains uncertain.
The Human Cost
The fallout from these allegations extends beyond financial losses. Many employees and supporters of Ashes of Creation feel deeply betrayed. The gaming community’s hopes for a promising MMORPG have been shattered, highlighting the perilous trust placed in financial and operational leadership.
Conclusion
The unfolding saga of Intrepid Studios serves as a stark reminder of the importance of trust and transparency in business. As the legal battle looms, the repercussions of Sharif’s alleged actions are far-reaching and may define the future of not just Ashes of Creation, but also the broader gaming industry.
