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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.

By Elizabeth Napolitano
AccessTimeIconOct 20, 2022 at 5:39 p.m. UTC
Updated May 9, 2023 at 4:00 a.m. UTC
Slotie stands accused of funneling proceeds from the NFT sales into online and metaverse casinos. (Pixabay)
Slotie stands accused of funneling proceeds from the NFT sales into online and metaverse casinos. (Pixabay)
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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.

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    • 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.

    Read More: Metaverse Scammers Have a Bridge to Sell You. This Alabama Regulator Is Fighting Back

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Elizabeth Napolitano
    Elizabeth Napolitano

    Elizabeth Napolitano was a news reporter at CoinDesk.

    Follow @LizKNapolitano on Twitter

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