Game of Silks NFT Investment Fraud and Collapse Case
Investors filed a lawsuit against Game of Silks for selling unregistered securities and misleading buyers about NFT rewards, financial viability, and insider activity.
After rewards stopped and leadership admitted the business was unsustainable in mid-2024, Silks NFTs became worthless.
Game of Silks investors can join this case to stay updated on potential recovery.
Case Details:
Game of Silks marketed itself as a metaverse horse racing game where users could purchase NFTs tied to real racehorses. When the real horse won, NFT holders were promised a share of the earnings. Investors also bought Silks NFTs representing land, stables, and avatars, expecting rental income, passive rewards, and long-term value.
From 2022 through 2024, Game of Silks raised millions by selling NFTs and promoting them as investment opportunities. The company claimed rewards would grow over time and backed these promises with high-profile partnerships, including the New York Racing Association (NYRA), FOX Sports, and Tropical Racing.
By mid-2024, the project collapsed. The Season 2 horse NFTs failed to sell, rewards from Season 1 NFTs stopped without warning, and development was abandoned. During a private meeting with investors, co-founder Troy Levy admitted that:
The business needed $20+ million per year to survive, but had only brought in around $7 million.
NFT rewards were never sustainable and depended on continuous new sales.
Tropical Racing had exited months earlier, despite being featured in promotional materials.
Based on these events, investors filed a lawsuit against Game of Silks, claiming the company:
It sold unregistered securities by promoting NFTs as passive income investments.
It misled buyers about financial sustainability, reward reliability, and insider exits.
It failed to disclose that payouts would collapse without continued NFT sales.
Investors believe Game of Silks used deceptive marketing to raise funds, leaving them with worthless NFTs once the project failed.