Five states from the US declared a strategy to instantly take adequate measures to confront a Russia-based institution accused of trading fake NFTs (non-fungible tokens) to investors across the country to fund a metaverse-based casino named Flamingo Casino Club. The respective organization has been ordered by the authorities to abandon trading the respective assets, alleging it of performing fraud along with trading unregistered securities.
Deceptive assertions
Securities watchdogs based in Texas, Wisconsin, New Jersey, Kentucky, and Alabama stated that illegal investments had been solicited by Flamingo Casino Club since it initiated running in Russia from March onwards. The investors were promised by the project to obtain lucrative gains via the trade of the non-fungible tokens which played the part of being proof of ownership of the lands and objects available at the virtual casino as well as participating in lotteries offering worthwhile prizes such as cash in million dollars, iPhones, and Teslas.
As per the mutual statement given by the watchdogs, several falsified assertions have been promoted by Flamingo Casino Club to defraud people to purchase NFTs. the project pointed out that it has a collaboration with Flamingo Las Vegas (a casino based in Nevada), however, it verified subsequently that no such association took place. The action additionally brought to the front that the Club had additionally lied saying that Marketwatch and Yahoo were the collaborators thereof, to make the scheme attractive.
The investors were assured by the people at the back of the scam that utilization of their funds would be focused on the construction of an entertainment facility as well as operating a casino in The Sandbox. To additionally tempt the investors to participate in the scheme, a Twitter post was shared by the project noting that it had conversed with Snoop Dogg, a well-known rapper, to buy a few of the virtual lands in his possession, nonetheless, such an assertion was refuted by the watchdogs.
Just a part of the matter
Several online operating fraudsters usually remain unknown to avoid being detected in the case of the exposition of their frauds. This type of approach was also chosen by the Club, as the watchdog mentioned, by utilizing a deceptive office address and offering a service-less telephone number to disguise the physical location as well as the material information regarding its principals. In addition to this, the group also hid their link with Russia as well as the real identities thereof.
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