State Securities Regulators Move to Shut Down NFT Scam Tied to Metaverse Casino

The action comes as states are increasingly joining forces to tackle crypto crimes.

AccessTimeIconOct 20, 2022 at 5:39 p.m. UTC
Updated Oct 20, 2022 at 6:30 p.m. UTC

Elizabeth Napolitano is a news reporter at CoinDesk.

Officials from Alabama, Kentucky and Texas filed cease-and-desist orders against Slotie NFT, alleging the illegal and fraudulent sales of non-fungible tokens (NFT), according to a Tuesday press release.

Based in the country of Georgia, Slotie was accused by the group of funneling proceeds from the NFT sales into online and metaverse casinos.

According to the regulators, the company issued 10,000 Slotie NFTs that provided investors with ownership interests in the casinos and opportunities to earn passive income from their operations. The filings also accuse Slotie of violating state registration laws by failing to register their securitized NFTs with the appropriate securities boards.

The coordinated filings are the latest in what’s been a number of state regulator initiatives to team up to tackle metaverse crimes. In May, officials in five states combined forces to stop a similar scheme promoted by the Flamingo Casino Club and Sand Vegas Casino Club.

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Elizabeth Napolitano is a news reporter at CoinDesk.

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Elizabeth Napolitano is a news reporter at CoinDesk.