- Slotie was accused of reinvesting proceeds from NFT sales in online and metaverse casinos.
- Alabama, Kentucky, and Texas officials served cease-and-desist orders on Slotie NFT.
- They claimed that the sale of non-fungible tokens was illegal and fraudulent.
Metaverse Casino had been accused by regulators in four states of selling NFTs that contravene securities laws.
State Securities Regulators have filed enforcement actions against @SlotieNft! Claiming they are engaging in fraud by selling securitized #nfts. The project could be facing a sentence of 2 to 10 years and a fine if they don’t comply pic.twitter.com/qypcwJeqyA
— OKHotshot (@NFTherder) October 21, 2022
State securities regulators in Texas, New Jersey, Kentucky, and Alabama revealed that a Georgia-based virtual gaming corporation claiming to be the “largest and fastest growing online casino network” registered an enforcement action against a Slotty NFT, asserting they are intriguing in fraud by selling securitized NFTs.
According to state regulators, NFTs are unauthorized securities issuances that violate state law. He directed Slotty to immediately cease and desist from selling its NFTs in the four states where orders had been issued.
Also, the company has recently issued 10,000 Slotie NFTs to investors, offering them ownership stakes in the casinos along with opportunities to create additional income from their operational processes, according to regulators. Furthermore, Slotie is charged with breaking state registration laws by not registering their securitized NFTs with adequate securities boards.
The coordinated filings represent the most recent of several state regulator initiatives to work together to combat metaverse crimes. The Flamingo Casino Club and Sand Vegas Casino Club elevated a similar approach that was prevented in May by officials from five states working together.
The determination was taken at a time when discontent over US regulators’ stance on NFTs has never been higher. Regulators have thus far been particularly quiet about their desire to regulate NFTs as securities, but recent events suggest that may soon change.
The gambling corporation, in comparison, has not yet openly acknowledged the allegations and has instead backtracked on the allegations on Twitter.
More than utilities, what makes Sloties special is the conviction of the team and community 💪
We’re all pushing towards massive success. We’re all in 🎰
— Slotie (@SlotieNft) October 21, 2022
Slotie added to their official Twitter handle that what contributes to the specialty of Sloties is the conviction of the team and the community, even more than utilities. They revealed that they are all pushing towards huge success, and they are all in. Community members addressed on Twitter that they are with Sloties.