Five State Regulators Have Ordered Metaverse Casino to Shut Down Immediately

On Wednesday, five US states issued cease-and-desist orders against a supposedly Russian-linked metaverse casino. The Flamingo Casino Club, a virtual casino, was ordered by five state securities regulators to stop selling non-fungible tokens immediately. The Flamingo Casino is accused of “fraudulently recruiting” NFTs in Russia, according to simultaneous filings by agencies in Texas, Wisconsin, Kentucky, Alabama, and New Jersey. Metaverse Casino Ordered By Five State Regulators To Shut Down Immediately The Russian Connections of Metaverse Casino The proprietors of the online casino allegedly failed to disclose their ties to Russia and falsely claimed to be linked with legitimate businesses, according to state law enforcement officials. The Flamingo Casino offered NFT holders metaverse concerts, tennis courts, and poker tournaments as incentives for owning NFTs. According to the regulators, these NFTs “appear to convey ownership of a metaverse casino as well as the right to share in the metaverse casino’s earnings.” No Telephone, No Office “The offering is effectively a high-tech swindle,” according to the 22-page order. Investors win when clients pay to play virtual craps, roulette, blackjack, and other games using avatars, according to regulators. The regulators further claim that the online casino’s operators concealed their Russian ties by using a false business address and an out-of-service phone number. False claims of af...