Metaverse Casino Served Emergency Shutdown and Refrains from Stopping NFT Sales

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A metaverse casino has been hit with concurrent cease and desist orders from four law enforcement agencies across the United States, who have ruled that the company non-fungible tokens (NFT) at be unregistered titles.

On two NFT collections offered by metaverse casino Slotie, the tokens would offer access to the metaverse casino, staking rewards, revenue distribution from its games, lotteries and native token WATT.

However, regulators seem unhappy with the way the platform has marketed NFTs and its alleged lack of title registration.

October 20, TexasKentucky, New Jersey and Alabama state securities boards ordered Slotie to cease and desist trading, citing the platform’s lack of state registration and securities offering not recorded via NFTs.

“The shares accuse Slotie of issuing 10,000 Slotie NFTs similar to shares and other stocks. Slotie NFTs are intended to provide investors with equity stakes in casinos and the right to passively share casino profits,” an October 20 statement from the Texas State Securities Board. bed.

The agencies also accused the organization — which it says is based in Georgia — of providing misleading promotional information and concealing key financial information, among other charges.

The New Jersey Bureau of Securities’ cease and desist order argues that Slotie is offering securities that are not registered with the Bureau, “federally covered,” or exempt from registration.

He also accuses the platform of failing to provide all the information required to operate a gambling platform while providing misleading information and failing to register as a broker.

In particular, the filing challenges Slotie’s claims that his initial collection of 10,000 NFTs sold out in less than five minutes, and his second batch of 5,000 NFTs sold out in less than two minutes, noting that there is no “proof on the blockchain” to support such claims. .

“In connection with the offer, sale or purchase of securities, Slotie makes materially false and misleading statements and/or omits to state material facts,” the filing reads.

Related: Texas Investigates FTX for Securities Violation After Objecting to Voyager Auction

According to an Oct. 20 CNBC report, Texas State Securities Board Director Joe Rotunda warned against metaverse-related NFTs, noting that “NFTs that claim to provide passive income – feature often significant undisclosed risks,” adding:

“These risks are often significant, and investing in virtual realities can leave investors virtually broke.”

The refusal by U.S. law enforcement agencies adds to similar cease and desist orders against Web3 game projects Flamingo Casino Club and the Sand Vegas Casino Club earlier this year.

Flamingo Casino Club, in particular, was accused by five US state agencies in May of being a operation run by Russian crooks who allegedly faked a partnership with a land-based casino and lied about buying Metaverse land from hip-hop artist Snoop Dogg.

The United States Securities and Exchange Commission (SEC) also looked into whether certain NFTs could be considered securities.

In March, unnamed sources told Bloomberg that the The SEC was investigating the creators of NFTs and marketplaces regarding whether “certain non-fungible tokens […] are used to raise funds like traditional securities.

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