The accused metaverse project, Flamingo Casino Club, has reportedly perpetrated the scam by selling NFTs to US residents.
Five US states announced plans to take immediate action against a Russian organization allegedly selling fraudulent NFTs to US investors for funding a metaverse casino called Flamingo Casino Club. The authorities required the entity to stop selling such digital assets, accusing it of committing fraud and selling unregistered securities.that Flamingo Casino Club had solicited unlawful investments since it started operating from Russia in March.
According to the joint statement by regulators, Flamingo Casino Club has promoted numerous falsified claims for scamming people to buy their NFTs. The project claimed it had a partnership with the Nevada-based casino Flamingo Las Vegas, but it later proved that there was no such affiliation. The action also found out that the Club even lied that it had partnered with Yahoo and Marketwatch with the purpose of validating its scheme.
Operators of the alleged scam promised investors their funds would be used to build a functioning casino and entertainment facility in The Sandbox. To further entice potential investors to get on board, the project