Texas, Wisconsin, Kentucky, New Jersey, and Alabama regulators have issued a cease-and-desist order against Flamingo Casino Club, a virtual platform where users may acquire non-fungible tokens (NFTs) and enter lotteries.
The Texas State Securities Board issued the order on Wednesday, alleging that the virtual casino is linked to Russia. Regulators stated in their reasons for seeking the order that the virtual casino utilized its website to entice investors with deceptive promises.
According to the decision, Flamingo agreed to provide consumers who purchased NFTs via the site 50% of its proceeds. The casino also encouraged customers to participate in its organized lotteries in order to win massive jackpots.
The inspectors further said that the casino claimed to be supported by large genuine firms such as the renowned Flamingo Las Vegas Hotel and Casino.
The order noted that all of these were incorrect and were essentially fabrications utilized to market the securitized NFTs supplied by the casino in order to recruit investors.
The decision also ruled that Flamingo failed to offer authentic vital information to the public. As a result, there was no way to confirm that the persons claiming to be behind the platform were real.
Overall, the judgment referred to the virtual casino as a “high tech swindle” that regulators are attempting to protect the public from in order to avert immediate and irreversible harm to individuals.
Following an inquiry, law enforcement officials determined that the claims of riches made by Flamingo to investors, as well as the backers portrayed to the public, were all part of a Russian conspiracy to deceive investors.
The detectives were able to link the mysterious person(s) behind the platform to Moscow, Russia’s capital city, using the IP addresses of the desktop and mobile devices connected to the casino, according to the ruling.
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