Securities Regulators from five different states simultaneously filed an emergency cease and desist order against the Flamingo Casino Club, a virtual casino that operates in the metaverse, a digital world where participants can interact, purchase, and even gamble.
Regulators still don’t want scams to take place, even if it’s in a digital world.
Authorities in five US states have filed enforcement actions against the Flamingo Casino Club. https://t.co/BXJ3TUaJy4
— Cointelegraph (@Cointelegraph) May 11, 2022
The 22-page emergency cease-and-desist order, which came from agencies in Alabama, Kentucky, New Jersey, Texas, and Wisconsin outlined the false claims of the Flamingo Casino Club and instructed it to stop the sale of non-fungible tokens or NFTs.
Non-fungible tokens are digital assets created using blockchain technology. These are designated ownership of virtual property, in this case, proprietorship to a virtual casino. Each NFT has a unique property that cannot be replicated to prove its authenticity.
According to the regulators, they began investigating the virtual casino last March or shortly after it began operating....
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