38 Studios files for bankruptcy, FBI investigating

Kingdoms of Amalur developer 38 Studios has declared bankruptcy, and that may not even be the worst news surrounding the company in the past 24 hours.

Both state and federal officials have launched an investigation into the studio, following the series of events that brought about the MMO developer’s sudden demise.

Rhode Island State Police superintendent Colonel Steven O’Donnell announced that state police, the FBI, the U.S. Attorney’s office, and the Rhode Island attorney general are all working together to investigate the company. O’Donnell stated the investigation centers on ‘activities that have recently come to light at 38 Studios.’

Meanwhile a 38 Studios representative released the following statement to The Providence Journal regarding the company’s bankruptcy filing:

"This action comes after several weeks when the company has reviewed, considered and received the recommendations and advice with respect to potential avenues for relief that are currently available. After ongoing negotiations with the State of Rhode Island and potential investors and other interested parties, the Company has been unable to find a solution to the current stalemate."