The update was posted on the effort’s Discord and reads,
“As of today, 04/27/2020, we've received a response from the Washington Attorney General on Soulbound Studio's status. Specifically, Caspian has typed up a general FaQ in response to the most commonly asked questions on the status of Chronicles of Elyria and presented it to the department for distribution. This FaQ will supposedly be posted to the site later today, but we wanted to present the version that's been given to the legal departments without any potential modifications or changes.”
It continues, citing that the document essentially states that Soulbound Studios is technically still in operation, and Chronicles of Elyria is technically still in development with only one developer from the company. That developer, of course, is Caspian who announced that the game was shuttering.
It also explains that there are around five to six volunteers staying on. As the Discord post puts it,
“This is the justification they're giving Xsolla and the Attorney General for not issuing refunds on the game, as the project the funds were supposedly used for is still in development. In addition, factors such as this community and the moderators/developers who were let go are being blamed for the delays and shutdown in communications.”
The post concludes indicating that efforts will not be stopped to, “bring a satisfactory conclusion to this debacle.” You check out the full document here. Note, if this link doesn’t work properly, click on the Discord link above. The PDF document is attached there.