Back in June 2014, Eric Terenshiki and his partners at ETeeski raised $4,459 to work on a series of game development tutorials that walked you through making a game called Ant Simulator. On January 30th, Terenshiki announced that he was resigning from the project. He alleges that his business partners were secretly stealing all the company money and spending it on "liquor, restaurants, bars, and even strippers."
In a video he posted to his YouTube channel, Terenshiki claims "I recently found out that my ex-business partners were secretly stealing company money. They had secretly spent the overwhelming majority of both our Kickstarter money and the Ant Simulator investment money on liquor, restaurants, bars, and even strippers. This, among many other reasons, is the reason why it has become exceedingly clear to me why I cannot have my career associated with these guys. My ex-business partners directly said to me 'If you release Ant Simulator without us [we] will sue you.' I really don't have any options."
Ternshiki has also posted in the video's comments to elaborate that:
A lot of people are telling me to seek legal advice. I have. The problem is that these guys covered their asses in the contract. They'll say the drinks were for business meetings, and they have the paperwork/minutes to prove they had meetings (even though I know they were bullshit meetings). They went over the contract line by line with me and I reviewed the whole thing twice. I just didn't realize they had protected themselves, screwed me (like the fact that they listed themselves as consultants, so they aren't legally obligated to work on anything, but still have the rights to spend money ect.), and I had no idea what their plan was until it was too late.
I could try to sue them, yes. The problem is that the most likely outcome is that things will end up more or less the same as they are now. The only difference is that I would have wasted a lot of time and money on court and lawyer fees. Cutting ties with them is just faster, simpler, and safer. Besides, I'm really damn good at making games. I will make other games. They won't.
Since leaving the team, ETeeski's website has gone from having pages detailing the game, press contact details, and Terenshiki's Gamedev Tutorials series to simply having a page that offers bios on Tyler Monce and Devon Staley, the studio's director of finance and director of operations respectively.
Update: Monce has responded to Terenshiki's claims, calling them "100 percent bullshit" and paints a very different picture of events.