Plaintiff brings this lawsuit against two corporate Defendants and four individual Defendants on behalf of purchasers of Game of Silks NFTs.

According to the Complaint, Defendants created a company to build a computer game called Game of Silks that brought real-life horse racing to the metaverse. Participants could invest in virtual versions of real racehorses and, when the racehorses won at the race track, the owners of the virtual horses would win real money—roughly 1% of the racehorse’s real earnings. Defendants promoted the game as a way for investors like the Plaintiff and the Class to get the virtual experience of owning and managing racehorses and see a healthy return on their investment as the game succeeded.

The Complaint alleges that the Game of Silks NFTs, which were first sold beginning in April 2022, are securities as defined by the Securities Act of 1933 and that required registration statements for the Securities were never filed with the U.S. SEC. The Complaint further alleges that Game of Silks violated Sections 5 and 12(a)(1) of the Securities Act by selling and soliciting the sale of unregistered Game of Silks NFT securities. Finally, the Complaint alleges that Defendants made material misstatements and omissions in connection with the sale of the Securities, including failing to disclose critical financial information about the company's business model and sustainability.