Five US States Order Fraudulent Metaverse Project To Stop Operating

Five US States order fraudulent metaverse Project Flamingo Casino Club to stop operating after he was selling NFTs to US residents maliciously so let’s read more today in our latest cryptocurrency news.

The accused metaverse proejct Flamingo Casino Club scammed investors by selling NFTs to US residents and the five US states annoucned more plans to take action against the Russian organization that sold fraudulent NFTs for funding a metaverse casino. The authorities required the entity to stop selling these assets and accused it of committing fraud and selling unregistered securities. The Securities Regulators from Alabama, New Jersey, Kentucky, and Wisconsin said that the Flamingo Casino Club solicited unlawful investmetns since it started operating from Russia and the project promised investors quite high profits via the sale of the NFTs which acted s proof of ownership of items and lands int he casino.

The Texas State Securities Board order indicated that the securities NFTs misled investors with the new opportunities to earn profits generated by the virtual casino and to enter the lotteries which offered lucrative prizes like iPhones, Teslas, and millions of dollars in cash. According to a joint statement by regulators, the Flamingo Casino Club promoted plenty of falsified claims for scamming people to buy their NFTs and the project claimed that it had a partnership with the casino in Las Vegas but then proved that there was no such affiliation. The action found out that the Club lied that it had partnered with MarketWatch with the purpose of validating the scheme.

The operators of the scam promised investors their funds will be used to build a functioning casino and entertainment facility in the Sandbox so as to furhter entice the investors to get on board, the proejct noted that it negotiated with Snoop Dogg to purchase some of the virtual lands but the regulators refuted this fraudulent claim. Most online scammers remain anonymous in case of going dark but the Club used a tactic by using phony office addresses and providing a telephone number that is not in service and concealing its physical location, hiding the material information abou tits principals. The team also concealed their true identities and their connections to Russia.

The regulators accused the project of developing high-tech tools to create a fake legitimacy and to deceive victims warning that the latest fraud only accounted for a small part of the crimes in the metaverse space:

“We are uncovering an increasing number of suspect solicitations for unregistered securities tied to the metaverse. Today’s action may well be just the tip of the iceberg.”