Watchdogs in five American states have released emergency decrees to halt the activities of a metaverse-based casino, Flamingo Casino Club. The virtual casino has been suspected to have connections with Russia and is involved in a list of fraudulent operations.
New Jersey, Wisconsin, Alabama, Kentucky, and Texas are the five states that have demystified the operations of the virtual casino and issued a cease-and-desist order.
Flamingo Casino Club is paraded as a casino house that has affiliations with reputable businesses and this has boosted the sales of its non-fungible tokens (NFTs) which were portrayed to be very secure.
Phishing Activities of the Flamingo Casino Club
The Club had started its operations a few months ago, although in Russia but had tried to shield the users and investors from genuine key information by providing a false office address, unreachable contact number, and hiding the location of its real-life office. The information about its proprietors and stakeholders was withheld from the users.
Investors were deceived into believing that the Flamingo Casino Club is linked with the prestigious Flamingo Las Vegas Hotel and Casino in the United States. Upon investigation, it was discovered that both entities had no relationship whatsoever.
The victims of this deceptive act were promised a fraction of the casino, a percentage of the income realized from the operations of the casino, and entrance into a lottery pick where prizes like iPhones, automobiles from Tesla, and cash prizes would be won.
The casino had also earlier announced its plan to purchase a landed property from The Sandbox, a metaverse platform. That plan seemed to have been hampered and when approached for an explanation, it was attributed to a delayed decision for Snoop Dogg whom the casino claimed to have been in discussions.
NFT Sales Muted
While the government agencies are aware of the looming danger as advancement and expansion take place in the metaverse, the state regulators are making huge efforts to unravel this trail down to Russia, the sales of its NFT would have to stop as the sanction has named it a ‘high tech scam’.
Although, there is high skepticism about recovering the already embezzled funds put in by investors.