On Wednesday, orders were issued to five different metaverse casinos, instructing them to stop the sales of NFTs. Five US regulatory authorities acted fast to close a metaverse casino suspected of having relations with Russia and forced the casino to cease selling NFTs. Five jurisdictions throughout the country collaborated to simultaneously fulfill the orders. State regulatory bodies in Kentucky, Alabama, Texas, New Jersey, and Wisconsin delivered the order.
The casino was shut down due to allegations that it had relations with Russia and had also begun operations in the country.
Russia and Casino Ties
The state regulatory bodies allege that the brains heading Flamingo casino decided not to mention their relations with Russia and went on to disguise themselves as being associated with a highly valued business to conceal their involvement with Russia.
As an incentive for NFT ownership, the Casino made available to its customers access to different bonuses and events. This was the casino’s effort to promote NFT ownership.
There is a graphic on the site that explains how they distribute fifty percent of the earnings to their NFT holders. This affords those who hold NFTs the chance to earn even without active employment.
According to a press statement from the regulatory bodies, these non-fungible tokens appear to transmit sections of a metaverse casino as well as the right to share in the casino’s earnings.
The claim that the casino is a virtual scam was made in the document that was twenty-two pages long. They continued by saying that stakeholders are only compensated when casino customers pay to participate in one or more of the virtual games using an alias that they have created for themselves.
Lack of Contact Address
In addition, the order stated that the proprietors denied having any connection with Russia. They came to the conclusion that the best way to conceal this was to create a fictitious office address and use an old telephone number. To make matters even worse for themselves, they also claimed to be associated with the Flamingo Casino and hotel in Las Vegas, which is an actual casino and has no connection whatsoever with the scam casino that they had created.
Breeding Ground for Fraud
The order demonstrates a new and focused effort by regulatory bodies to combat the recent happenings in the rise of the metaverse, which is a place where technology coupled with the innovative thinking of people has led to a breeding ground for criminals and fraudsters who are looking for people to scam. The order was issued as a result of the recent happenings in the rise of the metaverse.
The dangers posed by newly emerging scams in the metaverse are made worse by the fact that once funds have been stolen, it is extremely unlikely that those funds will ever be retrieved and returned.