NFT Casino Project Accused of Violating Securities Laws QuoteCoin
New York City: A casino in the metaverse is being accused of selling non-fungible tokens (NFTs) in violation of the laws governing securities by regulators in four different jurisdictions.
State securities regulators from Texas, New Jersey, Kentucky, and Alabama filed emergency cease-and-desist orders against Slotie NFT on Thursday. Slotie NFT is a virtual gambling entity based in Tbilisi, Georgia, and markets itself as “the largest and fastest growing online casino network on the blockchain.” State securities regulators from Texas, New Jersey, Kentucky, and Alabama filed the orders.
Slotie is a company that runs gambling games in more than 150 online casinos. Slotie also offers non-fungible tokens (NFTs) that promise to provide holders ownership interests in those casinos as well as the option to partake in Slotie’s gaming revenues in a passive manner. The NFTs, of which Slotie issued 10,000, are differentiated by their rarity; the bigger the proportion of casino profits to which the holder of a Slotie NFT is reportedly entitled, the rarer the Slotie NFT. It is only one of many other NFT initiatives that are now available on the market and give holders benefits and services that are comparable to revenue sharing.
According to the findings of state authorities, the NFTs are unregistered securities that were issued in defiance of state legislation. They have issued an order for Slotie to immediately stop selling its NFTs in the four states that have filed orders, and it specifies that Slotie must comply.
If Slotie does not comply with the demands during the next thirty days, the owners of the company face the possibility of being prosecuted and fined in addition to serving a prison sentence ranging from two to ten years.
