Shockingly, this NFT Metaverse Casino is already in big trouble

“Investing in virtual realities can make investors almost broke.”

Not like other girls

An advice? Maybe avoid giving any of your hard earned money to Slotie, a “metaverse casino” that was just issued an emergency cease and desist order from four different US states. In accordance CNBCofficials in Texas, Kentucky, New Jersey and Alabama have accused the digital gambling house of soliciting and defrauding retail investors using Slotie NFTs, creatively called “Sloties”.

“Sloties is your ticket to the largest and fastest growing online casino network on the blockchain,” says the company’s website. “This is not your average slot machine: with Sloties, it’s your house, your rules.”

Unfortunately, even if Slotie is not the “average” slot, investors have probably placed a bad bet.

Slotie treason

Slotie’s alleged scam seems like a pretty run-of-the-mill web3 securities scam. The site, which operates out of the country of Georgia, effectively marketed its NFTs as stocks, promising users a stake in the casino’s profits in exchange for the purchase of their digital assets. Which, well, would make these NFTs securities; However, Slotie failed to register them as such.

“The actions accuse Slotie of issuing 10,000 Slotie NFTs that look like stocks and other stocks,” _____. “Slotie NFTs allegedly give investors ownership stakes in the casinos and the right to passively share in the profits of the casinos.”

The site has also been accused of boosting its so-called investments via manufactured hype, claiming that in one product case 10,000 of its assets sold out in under 10 minutes.

“There is no evidence on the blockchain,” the New Jersey filing says, “of 10,000 Slotie NFTs selling out in under 5 minutes.”

Another telltale warning sign? NFT buyers were given no way to actually contact the company or its owners.

Red flags

But while there were clearly some red flags here, Slotie was really just exploiting the same tactic used by even the most mainstream crypto operations: convincing people that they’re getting in on the ground floor of something big, when they really aren’t the. understand what it is to begin with.

“The latest metaverse investment products — NFTs purporting to provide passive income — often carry significant unknown risks,” said Joe Rotunda, Texas’ securities board director. CNBC in a statement.

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

READ MORE: Four US states order a metaverse casino to stop the sale of NFTs [[[[