Eurogamer was contacted by a current employee of Crytek's main office in Frankfurt, who said staff there had not been paid for two months, and pay over the previous five months had been delayed by up to four weeks.
The source accused Crytek's embattled founders, brothers Cevat and Avni Yerli of failing to communicate properly with the company's increasingly angry workforce.
The source said the current belief is that Crytek has simply run out of cash, and while management are working on new deals, a rescue plan is taking longer than expected.
One source told Eurogamer staff aren't even sure if Cevat's still with the company, as he hasn't been seen in employee update meetings for months. His brother, Avni, has been the primary point of contact.