US regulators from several states have come together to push another metaverse casino out of its usual orbit by ordering Slotie to stop selling NFT to retail investors immediately. [Image: Shutterstock.com]
real world problem
The metaverse, known for its acid-colored, non-fouling cartoon characters (NFTs), has run into real-world trouble with government regulators in New Jersey, Alabama, Kentucky and Texas.
Emergency cease and desist orders
In a press release Thursday, the Texas Securities Commission said it and its counterparts, the Alabama Securities Commission and the Kentucky Department of Financial Institutions, simultaneously filed emergency cease orders and moratoriums on the Metaverse Casino Slotie NFT. On the same day, New Jersey Attorney General Matthew Platkin also confirmed that his state had issued a cease and desist.
according to CNBCRegulators have ordered Slotie to immediately stop selling NFTs to retail investors.
Law enforcement officials allege that Georgia-based Slotie sold illegal and fraudulent NFTs to investors in order to fund online casinos and metaverses. Officials said the owners of Slotie have asked online investors to participate in illegal gambling in the metaverse.
The regulator warns of dangers
In the multi-state order, officials also allege that Slotie failed to provide a physical address, phone number, or evidence that her promise of earnings to NFT holders was legitimate.
The The regime also accuses Slotie of hiding his assets and opponents, in addition to its expected use of capital. The European company is also accused of concealing:
The identity of partner casinos, and the main risks associated with metaverse casinos. “
While it is not yet certain that Slotie has heeded the regulators’ orders, the company appeared unfazed on Thursday, speaking about its casino-related NFT investments via Twitter:
CNBC He cited Texas State Securities Board Director Joe Rotunda, who advised investors to beware The risks posed by “the latest metaverse investment products.” Rotunda said that NFTs that claim to provide passive income often “bear significant undisclosed risks,” adding that “investing in hypothetical realities can leave investors virtually bankrupt.”
Organizers 3, metaverse casinos 0
This isn’t the only time two of the three regulators have tasked metaverse operators with a task. In an almost identical situation in April, Texas and Alabama ordered the virtual casino Sand Vegas Casino Club to stop selling NFT.
Donations for war victims in Ukraine
A month later, New Jersey, Kentucky, Wisconsin, and Alabama joined Texas in hitting the American Metaverse Casino Club’s Flamingo Casino Club with a multi-state hit and a stop. Organizers also accused Flamingo of falsifying donations to victims of the war in Ukraine.
