As such, a class action lawsuit has been filed against Game of Silks. The metaverse game that introduced real-life horse racing to the blockchain was sued for violating the Securities Act of 1933. The Rosen Law Firm, the same firm leading a lawsuit against Game of Silks, argues the company unlawfully sold unregistered securities disguised as NFTs and that they misrepresented their financial condition and business plan. If you purchased Game of Silks NFTs, including Silks Avatar NFTs, Silks Horse NFTs, or Silks Land NFTs anytime from April 2022 to present, you may be eligible to participate in the class action. Find out if you’re eligible right now!
Game of Silks launched something completely new, giving participants the ability to own virtual avatars of actual racehorses. The platform allowed its users to literally put their money where their mouth is and fund these digital horses while profiting off their real-world performance. Due to the nature of this activity, the suit contends that selling these Game of Silks NFTs constitutes selling securities. This claim is brought pursuant to the Securities Act.
The complaint alleges that Game of Silks failed to disclose material financial information. This data was wildly important for determining the viability and sustainability of its business model. The complaint claims that this failure to disclose is a legally actionable material misstatement and omission. It dupes investors into believing that they understand the real risk of their investment.
Rosen Law Firm represents investors worldwide with class action recoveries of always no upfront fee. Phillip Kim, Esq., is leading the case.
"If you purchased Game of Silks NFTs you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement." - Phillip Kim, Esq.
Investors that want to participate in the class action have until April 25, 2025 to file a motion for lead plaintiff status. People who wish to participate in the Game of Silks class action can do so by reaching out to Phillip Kim, Esq.
Regardless of the outcomes of either case, the lawsuit illustrates the growing attention around NFTs and their potential classification as securities. We know the digital asset landscape is changing every day. Now, regulators and plaintiff’s litigation firms are taking a hard look at the use of NFTs to deliver project investment opportunities. If that’s the case, it would lay the groundwork for other legal action against NFTs and against the application of the securities laws more generally.
