State securities authorities have filed coordinated enforcement measures to prevent a Georgian group from selling NFTs connected to metaverse casino gaming.
The lawsuits accuse Slotie NFT of unlawfully and fraudulently selling nonfungible tokens, often known as NFTs, to fund online and metaverse casinos. These complaints were filed by the Alabama Securities Commission, the Kentucky Department of Financial Institutions, and the Texas State Securities Board.
The complaints accuse Slotie of issuing 10,000 Slotie NFTs that resemble stocks and other securities.
A joint release said, “The Slotie NFTs reportedly give investors with ownership rights in the casinos and the chance to passively partake in the earnings of the casinos.” “However, it is believed that the rarity of each Slotie NFT impacts the amount of passive money due to the owner. Slotie NFTs with rarer qualities supposedly provide greater passive revenue than those with more common traits.”
Allegedly, Slotie also issued WATTs, an ERC-721 token on the Ethereum blockchain that played a crucial part in the unlawful scam. According to regulatory measures, Slotie advertised the NFTs by informing investors that each Slotie NFT produces 10 WATTS per day. Investors in possession of 2 Slotie NFTs and 1,800 WATTs were allegedly able to manufacture a new NFT, a process described to by Slotie as “breeding.”
The new NFT, known as Slotie Junior NFTs, allegedly doubles the income provided to Slotie NFTs owners and entitles investors to a piece of land in a metaverse.
State securities officials asserted that Slotie improperly traded Slotie NFTs and Slotie Junior NFTs. For instance, they accused Slotie of hiding its assets and obligations, its projected use of funds, the names of its partner casinos, and the hazards associated with metaverse casinos. In addition, they claimed that Slotie violated state registration requirements.
State securities authorities have warned investors about growing metaverse-related investment scams. State securities authorities have lately taken steps to halt illicit offers offered by the Flamingo Casino Club and the Sand Vegas Casino Club. In these recent enforcement operations, unlawful fundraising for online and metaverse casinos was also a factor.