Regulators in four U.S. states have submitted Their actions against their alleged virtual casino, Slotie, lured investors into an illegal gambling operation built into the Metaverse.
Slotie has sold over 10,000 NFTs to domestic and international investors, according to regulators in Texas, Kentucky, Alabama and New Jersey. These NFTs entitle investors to a portion of the company’s profits, they argued, effectively turning them into stock in the company.
Despite selling the securities, the company failed to register the securities with the U.S. Securities and Exchange Commission (SEC). Furthermore, it failed to provide investors with the necessary information such as company and founder addresses, assets, liabilities and earnings.
Slotie is based in Georgia and began operations in October 2021, according to the Texas Securities Commission. The company still pitches NFTs as investors’ “ticket to the largest and fastest growing online casino network on the blockchain.”
The four watchdogs want Slotie to stop and stop selling securitized assets immediately. NFTs Until regulatory approval from the SEC. Their court filing gave him one month to request a hearing on the matter by the company. Founders are liable to pay fines of up to $10,000 if they violate the order.
Regarding the crackdown, TSSB’s Joe Rotunda said: metaverse It can be abused by scammers to target unsuspecting investors.
“Modern metaverse investment products — NFTs that purport to provide passive income — often carry significant undisclosed risks. It could effectively bankrupt the house,” he said in a statement to the media.
Slotie is not the first Metaverse casino to be cracked down by US regulators. In May of this year, five U.S. state regulators, including the TSSB and the Wisconsin Department of Financial Institutions, Submission of enforcement action Play against Flamingo Casino Club. The project has a name similar to a legit physical casino based in Vegas, and the Metaverse claims he is building a casino, selling his securitized NFTs to fund development. procured. In addition to securities law violations, the company had strong ties to Russia.
A month ago, Texas and Alabama Ordered Sand Vegas Casino Club will stop selling NFTs. Over 11,000 of his NFTs sold by the company have led investors to believe they weren’t securities, regulators in two states said.
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