It began approximately 4 days after the kickstarter announcement. Eevee will have to send you to both sources about what has transpired, both his words which is on his patreon page and what the others have in possession which is a very lengthy digital snapshots, resources, speculations and accusations. You will have to come up with your own conclusion about the situation.
Recent community posts
Hate to break it to you but floraverse and any product relating to it is dead, due to the controversy that had started two months prior up til now. Many of the people that was inspired by the company are effected by the situation with both feelings of betrayal as well as being heart broken. There is no 'kickstarter'. Even the toys that is based on have been slammed to a stop by the toy makers. And as far as I personally know, may be permanent.
I personally do not like how the entire thing ended which gave no true closer. Those that are inspired by the beautiful concept and idea of the creation of the open world in which the community gets to grow and share together.. will leave with a feeling of being dirty. As in to be inspired by the creator into being a better artist and be left to share those same convictions as if you've done them as well. This wouldn't have been, if they done anything about it and not let it effect their lives and well-being (easier said then done). Taking proactive steps into debunking, reforming, and resolving whether if the conviction is true or not, but not leave with empty promises and lack of effort, especially when you have two contradicting expressed ideas not being clarified in parts what is and what isn't. I just found out yesterday and it's disheartening. A dream is worth protecting, not to run away from it.