Game of Silks Hit With Class Action Lawsuit Over NFT Sales
Feb 26
2 min read
On February 24, 2025, a class action lawsuit was filed against Game of Silks, Inc. and Tropical Racing, Inc. by prominent law firms Wolf Popper LLP and Burwick Law PLLC. The lawsuit alleges that the companies violated federal securities laws in their sale of non-fungible tokens (NFTs) related to a metaverse game that simulates real-life horse racing.
Key Takeaways
Lawsuit Filed: Class action lawsuit filed in the U.S. District Court for the Southern District of Florida.
Allegations: Game of Silks NFTs classified as unregistered securities.
Defendants: Includes Game of Silks, its executives, and Tropical Racing.
Investor Impact: Affected investors can file to be lead plaintiffs by April 25, 2025.
Background of Game of Silks
Game of Silks is a metaverse platform that allows users to invest in virtual representations of real racehorses. Players can earn money based on the performance of these horses in actual races. The NFTs, which include Silks Avatar NFTs, Silks Horse NFTs, and Silks Land NFTs, were first sold in April 2022.
Allegations in the Lawsuit
The lawsuit claims that:
Unregistered Securities: The NFTs sold by Game of Silks are considered securities under the Securities Act of 1933. The company allegedly failed to file the necessary registration statements with the U.S. Securities and Exchange Commission (SEC).
Material Misstatements: The complaint asserts that Game of Silks made significant misstatements and omissions regarding its business model and financial sustainability, misleading investors about the viability of their investments.
Control Persons: Key executives, including Dan Nissanoff, Troy Levy, Ron Luniewski, and Derek Cribbs, are named as control persons and are jointly liable for the alleged violations.
Implications for Investors
Investors who purchased Game of Silks NFTs and believe they have been harmed by these actions are encouraged to take action. They can file a motion to be appointed as lead plaintiff, which allows them to represent the interests of the class in the ongoing litigation. The deadline for filing this motion is April 25, 2025.
Conclusion
The filing of this class action lawsuit marks a significant moment in the intersection of digital assets and securities law. As the NFT market continues to grow, regulatory scrutiny is likely to increase, and cases like this may set important precedents for how NFTs are treated under existing laws. Investors are advised to stay informed and consider their options carefully as the situation develops.
Sources
Game of Silks NFT Investors Notice: Wolf Popper LLP and Burwick Law Announce the Filing of a Class Action Lawsuit Against Game of Silks, Inc. and Tropical Racing, Inc., SiouxlandProud.