Authorities in the US states of Alabama, Kentucky, New Jersey, Texas and Wisconsin have filed lawsuits against Flamingo Casino Club for the alleged execution of a non-fungible token (NFT) scam linked to a digital casino.
In an announcement Wednesday, the Alabama Securities Commission, the Kentucky Department of Financial Institutions, the New Jersey Bureau of Securities, the Texas State Securities Board and the Wisconsin Department of Financial Institutions alleged that Flamingo Casino Club has been “fraudulently soliciting NFTs” which it claims are tied to the property rights of a casino in the metaverse, thereby giving token holders a share of the profits generated. The organization has allegedly solicited investors directly through social media, enlisting influencers to promote NFT sales for the casino.
State authorities also alleged that the club began operations in Russia in March 2022 and made a “simply false” claim that it was associated with the Flamingo Las Vegas, a real casino whose name dates back to 1946. Additionally, the enforcement action charged Flamingo Casino Club with “deception and fraud” for claiming to be associated with Yahoo and MarketWatch.
“Not only is it allegedly concealing its connection to Russia, but Flamingo Casino Club is also allegedly using a false office address, providing a phone number that is not operational, concealing its actual physical location, and concealing material information about its executives.”, the five state regulators said. “Flamingo Casino Club is also accused of withholding other material information, such as the use of its funds and material information about its land purchase negotiations, which it claims to be purchasing from Snoop Dogg.”
BREAKING: Five states order metaverse casino with alleged ties to Russia to halt sale of NFTs. Texas State Securities Board says casino’s pledge to donate portion of NFT profits to victims in Ukraine is false. My latest w/@TortorelliPaige + @scottzamost https://t.co/J4P69xUPaX
— Eamon Javers (@EamonJavers) May 11, 2022
CNBC reported Wednesday that The “use of funds” included Flamingo Casino Club donating a portion of the proceeds from sales of its NFTs to victims of the war in Ukraine, a claim Texas State Securities Board Enforcement Director Joe Rotunda, said it was false. According to a Texas State Securities Board document, the organization allegedly claimed that NFTs would give users “the right to enter various sweepstakes and raffles,” including Tesla vehicles, iPhones, and cash prizes.
Since we felt like giving you just a wordly apology due to yesterday’s issues wasn’t enough, we have decided to hold a giveaway that includes everyone who decided to buy one of our NFTs! pic.twitter.com/pIfTNwSJpf
— Flamingo casino (@Flamingocasino3) April 14, 2022
The five authorities added:
“The same rules that apply to investments in the real world still apply to investments in virtual worlds. Screen names are not a substitute for real names. Qualifications and experience are important. There are no virtual risks, only virtual risks.” of losing real money on a real scam.
According to their website, Flamingo Casino Club started minting NFTs on April 12. At press time, the site featured illustrations showing the Flamingo Las Vegas Hotel and Casino and said the project was in the process of “acquiring land for the Flamingo Casino Club.”
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.