A nonexistent metaverse on line casino dealing in NFTs relies out of Russia and is scamming folks within the U.S., in accordance with regulators in a handful of states.
CNBC reported that regulators in Texas, Wisconsin, Kentucky, New Jersey, and Alabama collectively filed emergency cease-and-desist orders on Wednesday towards an upstart metaverse on line casino undertaking.
The metaverse on line casino is known as Flamingo Casino Club, and it claims on its web site that it’s affiliated with the Flamingo Casino on the Las Vegas Strip in Nevada. The on line casino mentioned that it has no relation to the Russian metaverse on line casino.
The digital on line casino, purportedly deliberate to be constructed on the metaverse platform The Sandbox, doesn’t really exist and certain by no means will, in accordance with the states.
“The green light was given on January 21, 2022,” mentioned a press release from the alleged rip-off in March. “The company is planning to build gaming facilities in a partnership with one of the oldest industry representatives in Las Vegas. Further, an entertainment center, a sports arena with a hockey team, golf courses, and horse racing in the Sandbox metaverse are also in the works.”
The 22-page emergency cease-and-desist order requires that the metaverse on line casino instantly halt the sale of its non-fungible tokens (NFTs), which states say is scamming Americans.
The metaverse on line casino started its rip-off earlier this 12 months, in accordance with the report.
Regulators mentioned that the digital on line casino advised “NFT holders they would receive 50% of the profits generated from the casino as passive income. It further enticed patrons by offering a chance to win exorbitant prizes such as Teslas and iPhones in its randomized lotteries.”
The press launch from the on line casino acknowledged that “every Flamingo club NFT holder will get a share of the profits generated in the Flamingo gaming club.”
Flamingo Casino Club additionally allegedly mentioned it has relationships with Yahoo and MarketWatch.
It’s not but clear how a lot Americans have invested into the Flamingo Casino Club.