Game of Silks NFT Investors Unite in Class Action Lawsuit Against Company
Mar 1
3 min read
On February 24, 2025, a class action lawsuit was filed against Game of Silks, Inc. and Tropical Racing, Inc. by prominent investor rights law firms Wolf Popper LLP and Burwick Law PLLC. The lawsuit alleges violations of federal securities laws related to the sale of non-fungible tokens (NFTs) associated with a metaverse horse racing game.
Key Takeaways
Lawsuit Filed: A class action lawsuit has been initiated in the U.S. District Court for the Southern District of Florida.
Allegations: Game of Silks is accused of selling unregistered securities and misleading investors about the viability of its business model.
NFTs Defined as Securities: The lawsuit claims that the NFTs sold by Game of Silks are classified as securities under the Securities Act of 1933.
Investor Participation: Affected investors have the opportunity to join the lawsuit and potentially serve as lead plaintiffs.
Background of Game of Silks
Game of Silks is a digital platform that allows users to invest in virtual representations of real racehorses, with the promise of earning returns 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.
The lawsuit claims that the company failed to register these NFTs as securities with the U.S. Securities and Exchange Commission (SEC), violating Sections 5 and 12(a)(1) of the Securities Act. Furthermore, the complaint alleges that Game of Silks made material misstatements and omissions regarding its financial health and business sustainability.
Allegations Against Game of Silks
The lawsuit outlines several key allegations against Game of Silks and its executives:
Unregistered Securities: The NFTs sold are considered securities and should have been registered with the SEC.
Misleading Information: The company allegedly failed to disclose critical financial information, misleading investors about the sustainability of its business model.
Control Persons: Executives Dan Nissanoff, Troy Levy, Ron Luniewski, and Derek Cribbs are accused of being control persons and are jointly liable for the company's violations.
Implications for Investors
Investors who purchased Game of Silks NFTs and believe they have been harmed by the company's actions are encouraged to join the class action. They have until April 25, 2025, to file a motion to be appointed as lead plaintiffs, representing the interests of the class in the litigation.
Conclusion
The filing of this class action lawsuit marks a significant moment for NFT investors, particularly in the context of evolving regulations surrounding digital assets. As the legal landscape continues to develop, the outcome of this case could set important precedents for the treatment of NFTs as securities and the responsibilities of companies in the blockchain space. Investors are advised to stay informed and consider their options as the case progresses.
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., www.yourcentralvalley.com.
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., www.nbc4i.com.
Game of Silks NFT Investors Have Opportunity to Lead Game of Silks, Inc. Securities Lawsuit, WesternSlopeNow.com.
SEC's New Stance Won't Impact Investor Lawsuit Against NFT Horse Racing Platform Game of Silks, Lawyer Says, Law.com.
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., FOX40 News.