(WFRV) – A metaverse casino that allegedly started operating from Russia in March, known as the Flamingo Casino Club, has been asked to stop its sale of nonfungible tokens (NFT’s) by five state security regulators, including the Wisconsin Department of Financial Institutions (DFI).
The Flamingo Casino Club has been fraudulently soliciting NFT’s that allegedly convey ownership of a ‘metaverse casino’, along with the right to share in the profits of the casino. Investors then can profit when customers pay to play the virtual casino games.
According to the report from the Wisconsin DFI, numerous red flags are connected to the virtual casino including its provenly false claim to develop its establishment through a partnership with the established casino in Nevada, Flamingo Las Vegas; as well them allegedly using a fake office address and phone number.
Perhaps the largest red flag involving this investment scheme is the Flamingo Casino Club’s lack of engaging financial professionals to market their NFT’s. Instead they solicit investors through their website, social media platforms and anonymous social media influencers, with two of those videos being viewed more than 40,000 times each.
The five state actions against Flamingo Casino Club are an attempt to put a stop to these fraudulent investment schemes from preying on the public. According to a report from the Wisconsin DFI, it reminds investors to put aside emotion, investigate red flags of fraud and objectively consider all material information before purchasing securities.
The actions were filed by the:
- Alabama Securities Commission
- Kentucky Department of Financial Institutions
- New Jersey Bureau of Securities
- Texas State Securities Board
- Wisconsin Department of Financial Institutions