Indie Studio Dynasty Loop Owes Employees Over $2 Million in Missed Payments

Key insights

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Key number

Dynasty Loop owes over $2 million to its employees and contractors.

Approximately 20 full-time employees and contractors are owed unpaid wages, bonuses, and expenses. This financial instability began in late 2022.

Timeline of events

Dynasty Loop's operational instability became apparent in late 2022.

Management initially cited technical software issues for payment delays. Despite these internal struggles, the studio continued to recruit new personnel.

Initial explanation. Financial instability began in late 2022, with management initially blaming technical software issues for payment delays while continuing to recruit new staff.

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Summary

The Montreal-based independent game studio Dynasty Loop is currently facing a severe financial crisis, with approximately 20 full-time employees and contractors owed over $2 million in unpaid wages, bonuses, and expenses. The situation, which began in late 2022, has left staff without compensation for months, while simultaneously dealing with restricted access to office facilities and internal business software.

Operational instability became apparent in December 2022 when management cited technical issues with financial software as the cause for delayed payments. Despite these internal struggles, the studio continued to recruit new personnel. By February 2023, employees were instructed to return company equipment, though management stopped short of formally declaring layoffs. Leadership later attributed the inability to pay staff to an indefinite freeze on company funds by the Canadian government, potentially linked to the immigration status of the studio’s founder, Rania Oueslati.

Management attempted to mitigate the fallout by proposing a lien agreement that would have guaranteed future payment in exchange for a six-month moratorium on legal action and a non-disclosure clause regarding the company's financial state. However, the studio ultimately declined to register this agreement, effectively releasing employees from the terms. As of March 2023, the studio remains in a state of uncertainty, with the founder providing no direct comment on the allegations. Founded in 2020, Dynasty Loop has yet to publicly announce or release any of its video game or NFT projects.