In a notable development in the blockchain gaming industry, Mythical Games has officially settled its legal dispute with Fenix Games. This comes after Fenix Games, founded by former Mythical Games executives Rudy Koch, Matthew Nutt, and Chris Ko, claimed to secure $150 million in funding in November 2022 for a new blockchain gaming publisher.

Mythical Games filed a lawsuit in December 2023, alleging that the founders had taken a strategic business plan while still employed, diverting funds intended for Mythical Ventures, a support fund for individual developers in the blockchain gaming market.

Today's settlement announcement confirms that Koch, Nutt, and Ko are no longer associated with Fenix Games, and the company did not secure the initially announced $150 million funding. The terms remain confidential, with neither party admitting fault.

The lawsuit outlined that, while at Mythical Games, the founders were entrusted with developing Mythical Ventures but allegedly diverted investor money to establish Fenix Games after leaving abruptly in November 2022.

Chris Ko, Fenix Games' former CEO, previously described the company as a venture capital fund, aiming to support the next generation of blockchain games and build a diverse portfolio. Ko left the CEO position in July 2023, and Fenix Games has been quiet since its partnership announcement with Immutable in June 2023.

Mythical Games IP

Seattle-based web3 gaming studio, Mythical Games, recently raised an impressive $37 million as the initial part of its Series C extension round. The round saw contributions from significant players in the tech investment field, with digital asset manager Scytale Digital leading and prominent firms ARK Invest, Andreessen Horowitz, and Animoca Brands participating.

The funding extends from a $150 million Series C round in November 2021, where a16z took the lead and valued Mythical Games at $1.25 billion. The company plans to conclude the extension round later this year, with expectations to raise an additional $20 million to $30 million in capital.

Known for the Mythical Chain blockchain, the Mythical Marketplace, and popular blockchain-based games such as NFL Rivals, Nitro Nation, and Blankos Block Party, Mythical Games has made significant strides in the gaming industry. In particular, NFL Rivals crossed a million downloads just two months post-launch.

The Fenix Games incident reflects challenges in the blockchain gaming sector, including regulatory issues and the broader impact of industry developments. With the failed funding and founders' departure, Fenix Games stands out as a venture that fell short of its promised success.