This week, it was revealed that authorities in five states and the United States issued an emergency cease-and-desist order against a metaverse company they believe has unsavoury connections to Russia and is nothing more than "a high-tech scam."
Authorities in Wisconsin, Texas, New Jersey, Alabama, and Kentucky simultaneously ordered the Flamingo Casino Club-branded domain to stop allowing users to buy non-fungible tokens, according to a report from NBCNews.com. The 22-page order, according to reports, was issued after an official inquiry found that the website was disseminating false information about its affiliation with the Flamingo Las Vegas Hotel and Casino while using a Moscow-registered IP address.
opacity in operation
According to the injunction, Flamingo Casino Club was allegedly declared ineligible for failing to provide its physical location, phone number, and any proof that the members of its leadership team truly exist. Additionally, according to the decision, the undertaking was accused of "intentionally failing to disclose assets, liabilities, revenues, and other financial information" pertinent to its operations and "the development and management of the metaverse casino."
cunning deceit
Joe Rotunda, the Enforcement Director for the Texas State Securities Board, allegedly informed the source that Flamingo Casino Club's conduct and lack of openness had left him "absolutely shocked." The knowledgeable regulator allegedly claimed that the domain was only employing clever visuals, false connections to well-known supporters, and enigmatic profit guarantees to trick investors into buying non-fungible tokens.
According to Rotunda, she told NBCNews.com
"You're bringing up digital assets and anonymous people hiding their locations. We might not be able to retrieve the money back once it has been transmitted, therefore. People could lose everything when it enters a black hole via the blockchain. If the money is heading to Moscow, investors will not be able to recover from their losses since they would have to go after those ghosts.
attractive assurance
According to reports, Flamingo Casino Club had been falsely promising a variety of benefits to those who bought its non-fungible tokens, from access to private poker tournaments and virtual concerts to the chance to take part in unique lotteries where winners could win expensive iPhones and Tesla cars. Additionally, the domain allegedly promised these investors that they would earn 50% of any proceeds from an online casino it planned to develop on The Sandbox metaverse platform.
Stalled plan:
However, Flamingo Casino Club, which mobilised at the same time that Russia invaded the nearby Ukraine, is said to still be in talks with American artist and tycoon Snoop Dogg and has not yet made any digital land purchases on The Sandbox platform. Although the cease-and-desist order alleges that the suspect business was "intentionally failing to disclose the status of negotiations for the purchase of virtual land" along with "the anticipated or projected cost of purchasing the virtual land," the 50-year-old businessman allegedly owns a portion of the virtual world where the planned online casino was to be located.
