2 years ago
Cheyenne Ligon is simply a CoinDesk quality newsman with a absorption connected crypto regularisation and policy. She has nary important crypto holdings.
Regulators successful 5 U.S. states issued exigency orders connected Wednesday requiring a metaverse casino with alleged Russian ties to instantly halt the merchantability of its non-fungible tokens (NFTs), citing fraud, deceit and registration violations.
The 5 states are Alabama, New Jersey, Texas, Kentucky and Wisconsin.
The Flamingo Casino Club began operating successful Russia successful March, regulators say, and has been soliciting investors done the merchantability of securitized NFTs.
Regulators accidental the Flamingo Casino Club operators took steps to conceal its transportation to Russia, “using a phony bureau address, providing a telephone fig that is not successful service, [and] concealing its existent carnal determination and hiding worldly astir its principals.”
According to an order filed by the Texas State Securities Board, the securitized NFTs springiness would-be investors partial ownership of the casino, a information of the profits generated by the casino and the quality to participate into lotteries offering Teslas, iPhones and million-dollar currency prizes.
Potential investors were further enticed by what regulators accidental were fraudulent claims of relation with the Flamingo Las Vegas Hotel and Casino, a morganatic casino, which regulators accidental has “no affiliation” oregon concern with the Flamingo Casino Club.
Operators of the alleged scam promised investors their funds would beryllium utilized to physique a functioning casino and amusement installation successful the Sandbox metaverse. The plans included “a virtual stadium for virtual games and concerts, a virtual hotel, a virtual movie theater, a virtual bowling alley…[and] a virtual hockey squad named ‘Flamingos,’” according to the orders.
Funds would supposedly beryllium generated via gambling successful the metaverse casino, wherever avatars would beryllium capable to play “craps, baccarat, minibaccarat, blackjack and roulette.”
Flamingo Casino Club’s operators told investors successful April they were negotiating with rapper Snoop Dogg to acquisition a crippled of onshore successful the Sandbox metaverse – but regulators accidental determination is nary grounds of this dialog ever occurring.
Regulators accidental that the Flamingo Casino Club operators ne'er registered the merchantability of their securitized NFTs with the securities boards, and failed to respond to galore inquiries.
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Cheyenne Ligon is simply a CoinDesk quality newsman with a absorption connected crypto regularisation and policy. She has nary important crypto holdings.
Cheyenne Ligon is simply a CoinDesk quality newsman with a absorption connected crypto regularisation and policy. She has nary important crypto holdings.
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