Regulators still don't want scams to take place, even if it's in a digital world. Authorities in five US states have filed enforcement actions against the Flamingo Casino Club.
Authorities in the U.S. states of Alabama, Kentucky, New Jersey, Texas and Wisconsin have filed enforcement actions against the Flamingo Casino Club for allegedly perpetrating a scam through nonfungible tokens tied to a metaverse casino.
In a Wednesday announcement, the Alabama Securities Commission, Kentucky Department of Financial Institutions, New Jersey Bureau of Securities, Texas State Securities Board and Wisconsin Department of Financial Institutionsthe Flamingo Casino Club has been “fraudulently soliciting NFTs” it claims are tied to ownership rights of a casino in the metaverse, thereby giving token holders a share of any profits.
The state authorities also alleged the club began operating in Russia in March 2022 and made a “simply false” claim that it was partnered with the Flamingo Las Vegas, a brick and mortar casino whose namesake dates back to 1946. In addition, the enforcement actions accused the Flamingo Casino Club of “deception and fraud” for claiming partnerships with Yahoo and MarketWatch.
“Not only is it allegedly concealing its connection to Russia, but the Flamingo Casino Club is also allegedly using a phony office address, providing a telephone number that is not in service, concealing its actual physical location and hiding material information about its principals,” said the five state regulators.
BREAKING: Five states order metaverse casino with alleged ties to Russia to halt sale of NFTs. Texas State Securities Board says casino’s pledge to donate portion of NFT profits to victims in Ukraine is false. My latest w/