State Regulators Say Russian Metaverse Casino Project Is Scamming Americans

State Regulators Say Russian Metaverse Casino Project Is Scamming Americans

Regulators Say Flamingo Club Is A High-Tech ScamA nonexistent metaverse casino dealing in NFTs is primarily based out of Russia and is scamming people in the U.S., according to regulators in a handful of states.

CNBC reported that regulators in Texas, Wisconsin, Kentucky, New Jersey, and Alabama together filed emergency cease-and-desist orders on Wednesday against an upstart metaverse casino project.

The metaverse casino is called Flamingo Casino Club, and it claims on its site that it is affiliated with the Flamingo Casino on the Las Vegas Strip in Nevada. The casino stated that it has no relation to the Russian metaverse casino.

The virtual casino, purportedly planned to be built on the metaverse platform The Sandbox, doesn’t truly exist and most likely in no way will, according to the states.

“The green light was provided on January 21, 2022,” said a press release from the alleged scam in March. “The firm is planning to build gaming facilities in a partnership with one particular of the oldest sector representatives in Las Vegas. Further, an entertainment center, a sports arena with a hockey team, golf courses, and horse racing in the Sandbox metaverse are also in the performs.”

The 22-page emergency cease-and-desist order needs that the metaverse casino instantly halt the sale of its non-fungible tokens (NFTs), which states say is scamming Americans.

The metaverse casino started its scam earlier this year, according to the report.

Regulators stated that the virtual casino told “NFT holders they would obtain 50% of the earnings generated from the casino as passive earnings. It further enticed patrons by supplying a opportunity to win exorbitant prizes such as Teslas and iPhones in its randomized lotteries.”

The press release from the casino stated that “every Flamingo club NFT holder will get a share of the earnings generated in the Flamingo gaming club.”

Flamingo Casino Club also allegedly stated it has relationships with Yahoo and MarketWatch.

It’s not however clear how much Americans have invested into the Flamingo Casino Club.