Game of Silks NFT Lawsuit: Cantner v. Game of Silks, Inc.
Game of Silks NFT class action against Nissanoff, Levy, and Tropical Racing for unregistered securities. Burwick Law represents investors.
On June 26, 2025, a second amended class action complaint was filed in the United States District Court for the Southern District of Florida, captioned Cantner v. Game of Silks, Inc. et al., Case No. 9:25-cv-80262, alleging that Game of Silks, Inc. and its executives sold unregistered securities in violation of the Securities Act of 1933. The lawsuit names as defendants Game of Silks, Inc., CEO and founder Dan Nissanoff, vice president and co-founder Troy Levy, Tropical Racing, Inc., COO Ron Luniewski, and CFO Derek Cribbs.
According to the complaint, defendants created a blockchain-based metaverse game that allowed participants to purchase NFTs representing virtual racehorses, avatars, and land parcels using Ether (ETH) on the Ethereum blockchain. The virtual horses were tied to real-world thoroughbreds, and purchasers were told they would receive payouts based on the real horses' race winnings. Defendants allegedly raised millions of dollars through successive public offerings of Avatar NFTs, Season 1 and Season 2 Horse NFTs, and Land NFTs, none of which were registered with the SEC. Defendants allegedly promoted the NFTs as investments, telling purchasers that the proceeds would fund platform development, that NFT values would increase as the game grew, and that payouts would eventually reach parity with real-world purses over six to seven years.
The complaint alleges that defendants touted high-profile partnerships with the New York Racing Association (NYRA), The Jockey Club, and Fox Sports, and highlighted a $2 million investment by Tropical Racing, controlled by co-founder Troy Levy, as a signal of legitimacy. Defendants allegedly promised transparency through a DAO structure but never provided meaningful financial disclosures. After the Season 2 Horse NFTs failed to sell, defendants stopped making payouts on Season 1 Horse NFTs by July 2024. A subsequent call with community members allegedly revealed that the company needed over $20 million per year to sustain operations, that Tropical Racing had quietly exited its investment months earlier, and that the board had determined no amount of capital could save the project. The platform was suspended and the NFTs became worthless.
The complaint asserts claims under Sections 5, 12(a)(1), and 12(a)(2) of the Securities Act of 1933 for the sale of unregistered securities and material omissions, Section 15 control person liability against the individual defendants, and, in the alternative, violations of the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) and unjust enrichment. The complaint seeks rescissory damages, disgorgement, attorneys' fees, and other relief.
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