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Metaverse Casino with alleged Ties to Russia Forced To Halt NFT Sales

The Flamingo Casino Club Faces Tough Allegations

Emergency cease-and-desist orders were filed in five states this week against Flamingo Casino Club. The charges were due to the metaverse casino allegedly having ties to Russia that they failed to disclose. Additionally, Flamingo Casino Club is accused of lying about having legitimate partnerships. 

Wisconsin, New Jersey, Alabama, Texas and Kentucky are accusing the virtual casino of making false claims. The twenty-two-page order also demands that it cease NFT sales immediately. An investigation into the casino found that it is run by residents of Moscow with the alleged intention of defrauding investors.

“You’re talking about digital assets and anonymous individuals who are concealing their location,” Director of Enforcement at the Texas State Securities Board, Joe Rotunda, told CNBC. “So once the money is transferred … we may not be able to get it back, right? It goes into a black hole through the blockchain, and people may lose everything.”

Flamingo Casino Club’s False Affiliations

The metaverse casino claimed affiliation with the Flamingo Las Vegas Hotel and Casino to appear authentic and gain investors’ trust. However, according to the famous Las Vegas casino, the claims of affiliation were fabricated, and relationships with MarketWatch and Yahoo were also falsified.

The casino also failed to provide clients with essential information like an address that could be used to verify the authenticity of the casino’s leadership. Additionally, the casino claimed it would purchase virtual land from the Sandbox, but, as of yet, nothing has been built. Unfortunately, for investors, it’s unlikely that they will reclaim their investment.

Even more unsettling, the casino also made allegedly false claims about donating money to aid Ukraine against Russia’s attacks.

“And they didn’t just talk about how they were going to donate to Ukrainian civilians to one person or two people, they publicly proclaimed it,” Rotunda told CNBC. “I haven’t seen any money going to benefit Ukrainians.”

Written By

Jack Brassell is a freelance journalist and aspiring novelist. Jack is a self-proclaimed nerd with a lifelong passion for storytelling. As an author, Jack writes mostly horror and young adult fantasy. Also an avid gamer, she works as the lead news editor at Hardcore Droid. When she isn't writing or playing games, she can often be found binge-watching Parks & Rec or The Office, proudly considering herself to be a cross between Leslie Knope and Pam Beasley.

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