Surprisingly, this NFT Metaverse casino is already in big trouble

“Investing in virtual realities can leave investors virtually broke.”

not like other girls

An advice? Maybe you’ll avoid giving some of your hard-earned money to Slotie, a “metaverse casino” that just received an emergency cease and desist order from four different US states, according to CNBCOfficials in Texas, Kentucky, New Jersey, and Alabama have accused the digital sportsbook of soliciting and defrauding retail investors through its Slotie NFTs, creatively dubbed “Sloties.”

“Slots are your gateway to the largest and fastest growing online casino network on the blockchain,” reads the company’s site. “This is not your average slot machine – with Sloties it’s your house, your rules.”

Unfortunately, although Slotie is not the “average” slot machine, investors probably made a bad bet.

betrayal slots

The alleged Slotie scam looks like a pretty run-of-the-mill web3 securities fraud. The site, which operates out of the country of Georgia, effectively traded its NFTs as stock, promising users a share of casino profits in exchange for purchasing their digital assets. Which, well, would make those NFTs securities; Slotie, however, did not record them as such.

“The actions accuse Slotie of issuing 10,000 Slotie NFTs that are similar to shares and other shares”, _____. “Slotie NFTs purportedly provide investors with ownership interests in casinos and the right to passively share in casino winnings.”

The site has also been accused of bolstering its alleged investments through fabricated hype, claiming that in a product crash, 10,000 of its assets were depleted in less than 10 minutes.

“There is no evidence on the blockchain,” the New Jersey filing read, “of 10,000 Slotie NFTs being sold in less than 5 minutes.”

Another telltale warning sign? Buyers of NFTs were not given any way to contact the company or its owners.

red flags

But while there were clearly some red flags here, Slotie was really capitalizing on the same tactics used by even the most conventional crypto operations: convincing people they’re coming in from the ground floor of something big, even if they really aren’t. understand what it is to start with.

“The latest investment products of the metaverse, NFTs that purport to provide passive income, often carry significant undisclosed risks,” said Joe Rotunda, director of the Texas Securities Board. CNBC in a sentence.

“These risks are often significant,” he continued, “and investing in virtual realities can leave investors virtually broke.”

READ MORE: Four US States Order Metaverse Casino to Stop NFT Sale [[[[

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