Another Metaverse-Based Casino on The Spotlight Over NFTs

A 22-page emergency cease-and-desist order has been issued against the metaverse-based Flamingo Casino Club. The order came from state securities boards in Texas, Wisconsin, Kentucky, New Jersey, and Alabama. The order lays out the boards’ allegations of fraudulent assertions. The casino, they claim, is nothing more than a “high-tech con”. As a result, they have demanded that the site immediately stop selling non-fungible tokens (NFT).

The Metaverse casino is accused of, among other things, making misleading assertions about its association with the Flamingo Las Vegas Casino and Hotel, which were later proved to be false. With that, the operator has basically been attempting to lure and deceive investors.

Users would have had access to virtual concerts, poker games, and tennis courts, according to the organization’s website. On the same note, NFT holders would get 50% of the casino’s earnings as passive income. It also attempted to appease customers by conducting randomized lotteries in which users might win high-value prizes.

Overall, the casino delivered securitized NFTs but without the backing of any fundamental information. There are no names, addresses, or phone numbers listed as well as no indication of legitimate leadership.

After considering all the factors, especially the lack of openness, it is evident that Flamingo Casino Club is untrustworthy in any jurisdiction. But that is not all.

The Casino’s Russian Ties

To make matters even more bizarre, state law enforcement officers stated that the Flamingo Casino Club’s managers failed to declare their Russian links. That is in addition to falsely claiming to have partnerships with respectable firms.

Investigators began looking into the casino in March, just a few months after it opened for operation. Through a series of subpoenas, regulators learned that Flamingo Casino Club’s mobile and desktop IP addresses were traced back to Moscow. This decreases the likelihood of any potential investors obtaining a return on their investments.

Keeping NFTs and the Metaverse Safe

The Metaverse, the next-generation digital universe, is occasionally fruitful ground for crooks, but regulators may work together to shut them down. Most regulators and governments are still undecided on the issue of regulating NFTs and the Metaverse.

They have been watching what other nations do and monitoring how the market evolves. In certain situations, they are striving to deal with this issue more aggressively, although with inconsistent outcomes. The five states’ coordinated effort shows what can be achieved when governments work together to solve a problem, and it is a huge step forward.