Metaverse Casino ordered to halt NFT sales after alleged Russian ties reported

A man looks upset and leans up against a balcony railing while staring at his phone with his head resting in one hand.

Image Source: Getty Images

Problem in the metaverse, as a fraudulent casino gives false promises.


Key points

  • Five US states are simultaneously filing an emergency termination order against Flamingo Casino Club, a metaverse virtual casino.
  • The scam included false promises of NFT gifts, horse racing and lotteries.

On Wednesday, Texas, Wisconsin, Kentucky, New Jersey and Alabama filed emergency orders against the virtual Flamingo Casino Club. The 22-page order filed a fraud complaint against the site, which proclaimed itself to be a leading virtual casino. This order revealed the fact that the club’s website omitted key information such as address, location and qualifications.

Flamingo Casino Club also claimed to be affiliated with Flamingo Las Vegas hotel and casino, which turned out to be false. It touted features like poker tournaments, tennis courts and virtual concerts. Even telling its NFT holders that they would receive passive income of up to 50% of the profits generated by the casino.

Regulators to the rescue

The scam was originally discovered by Joe Rotunda, who sits on the Texas State Securities Board as director of enforcement. While scanning pages in the meta verse, he came across Flamingo Casino Club. As they began to dig deeper, the site was eventually traced back to Russia. During the discovery phase, they realized that the IP addresses could be traced back to Moscow, which ultimately revealed the scam to deceive investors.

Although we love the decentralized world, which is Metaverset, it brings the need for regulation into play. It was Rotunda and the subsequent team of investors who not only were able to detect the scam but also began to intervene against it and ordered them to immediately suspend NFT sales.

Mistakes and all that, the meta-verse is becoming more and more relevant in our world. You may be wondering how to avoid scams such as “Flamingo Casino Club”. One way to do this is to do your due diligence before investing money. Often scammers want you to click on a link to receive land or non-fungible tokens, do not blindly follow these instructions. It is important to do research to know that the company is legitimate and backed by credible sources.

Want to buy NFTs but do not have a place to store them? Check out our guide to the best NFT wallets to start storing today!

Our best crypto game is not a symbol – here’s why

We found a company that positions itself perfectly as a long-term solution for the broader crypto market – Bitcoin, Dogecoin and all the others. In fact, you’ve probably used technology from this company in the last few days, even though you’ve never had an account or even heard of the company before. It has become so common.

Sign up today Stock Advisor and access our exclusive report where you can get the full scoop on this business and its benefits as a long-term investment. Learn more and get started today with one special discount for new members.

Begin

Earn a $ 100 bitcoin bonus

Our updated list of the best cryptocurrency apps for 2022 is packed with the best choices in the class. The cryptocurrency apps that landed on our shortlist include perks like $ 0 commission and a choice that offers a $ 100 bitcoin bonus. Check out the list here and start your cryptocurrency journey today.

Get the best choices

Leave a Comment