Five states move to shut down a metaverse casino that investigators allege is run by 'Russian scammers' who claimed they were buying digital land from Snoop Dogg
- Regulators in five US states filed cease-and-desist orders against Flamingo
CasinoClub on Wednesday.
- The orders allege the
metaversecasino promoted fraudulent NFT investments to US residents.
Five states have accused a metaverse company called Flamingo Casino Club of concealing alleged ties to
Securities regulators in Texas, Wisconsin, Kentucky, New Jersey and Alabama filed emergency orders Wednesday requiring the digital casino to cease its NFT business. The coordinated, cross-state effort is an example of how local laws may be enforced in the metaverse going forward as the tech industry continues to invest heavily in the concept.
"Although advances in technologies create exciting new opportunities for many businesses, scammers are already attempting to capitalize on the hype associated with metaverses and NFTs," the Texas State Securities Board said in a statement Wednesday. "Today's action may well be just the tip of the iceberg."
Regulators said Flamingo Casino Club concealed connections to Russia by using a fake office address, out-of-service phone number, and hiding the brand's actual physical location, which investigators say is in Moscow. The club also lied about having a partnership with the physical Flamingo Casino in Las Vegas and failed to back claims that it is buying digital land from Snoop Dogg, regulators allege.
Online scammers often hide their identities to allow them to "go dark" when the scheme is exposed, Texas regulators said. A spokesperson for Flamingo Casino Club could not be reached for comment.
According to the club's website, its NFT holders receive a share of the profits generated by the online casino. The NFT collection currently appears to be delisted from OpenSea. On April 13, the company tweeted it was experiencing technical issues due to website maintenance and could not mint its NFTs as a result.
- Kellyanne Conway says her husband was 'cheating by tweeting' his disdain for former President Trump in her new memoir
- Putin's leadership is unraveling as he takes regular breaks for medical treatment and is constantly surrounded by doctors, says British ex-spy
- The worst for Indian startups is yet to come — be prepared for layoffs, unicorn slowdown and startup shutdowns in 2022
- What would happen to Twitter if Elon Musk backs out now?
- Researchers develop a virus that works even when iPhone is switched off
- Supreme Court of India extends time for submitting Pegasus probe report
- Chopper services launched in Goa for tourists, locals
- Both Ambuja Cements and ACC are bet worth investing with strong parent Adani