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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.

Updated May 9, 2023, 4:00 a.m. Published Oct 20, 2022, 5:39 p.m.

Slotie stands accused of funneling proceeds from the NFT sales into online and metaverse casinos. (Pixabay)

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.

NFTs Regulators Securities Fraud US Metaverse

Elizabeth Napolitano

Elizabeth Napolitano was a data journalist at CoinDesk, where she reported on topics such as decentralized finance, centralized cryptocurrency exchanges, altcoins, and Web3. She has covered technology and business for NBC News and CBS News. In 2022, she received an ACP national award for breaking news reporting.