Metaverse casino slammed by US regulators

A metaverse casino projects with ties to Russia has been handed a cease-and-decease letter by five US state regulators.

The Flamingo Casino Club is accused of misleading investors into believing that the online casino is linked to the iconic Flamingo Las Vegas property.

The connection has been implied across the metaverse project to build up investor confidence and extract bigger investments.

However, the states of New Jersey, Texas, Kentucky, Alabama and Wisconsin have prepared a 22-page letter in which they address the fraudulent claims, and reveal it has ties to Russia.

The website IP of the NFT-inspired casino can be traced back to Moscow, raising another red flag.

The Flamingo Casino Club has made several false claims, including that it’s associated and in partnerships with Yahoo and MarketWatch.

Both claims have been disproved by the state regulators. In their letter, the watchdogs argued that the property is purposefully concealing its connection to Russia.

“Not only is it allegedly concealing its connection to Russia, but the Flamingo Casino Club is also allegedly using a phony office address, providing a telephone number that is not in service, concealing its actual physical location and hiding material information about its principals”, the letter reads.

The website is also suspected of other serious breaches, such as concealing information about use and origin of funds.

There is a lot of uncertainty around the project which has made several ambiguous claims. Flamingo Casino Club has been telling participants that they will be entitled to 50% of the casino’s income by purchasing NFTs and participating in what now appears to be a Ponzi scheme.

The project’s website still displays the Las Vegas casino property which has denied all and any association.

If you are keen to use cryptocurrencies to participate in blockchain casinos, we recommend that you stay away from fraudulent projects and trust the all-time favorites, such as Bitcasino, 1xBit or FortuneJack instead.

Source

Updated: 05/12/2022 — 11:00

Leave a Reply