State Regulators Charge Metaverse Casino With Selling NFTs That Violated Securities Laws

Slotie NFT, a metaverse casino, is accused by regulators in Texas, New Jersey, Kentucky, and Alabama of illegally offering NFTs that guaranteed investors a part of casino revenues

Texas, New Jersey, Kentucky, and Alabama state securities regulators issued emergency cease-and-desist orders on Thursday against Slotie NFT, a Tbilisi, Georgia-based virtual gaming company that bills itself as the largest and fastest-growing online casino network on the blockchain.

Slotie, which operates over 150 virtual casinos, provides NFTs that purport to give investors interest in those casinos as well as the option to passively partake in Slotie’s gaming revenues.

The NFTs were discovered by state regulators to be unregistered securities offered in contravention of state legislation. They have ordered Slotie to immediately cease and desist from selling its NFTs in the four states that have filed orders.

Slotie has 30 days to comply with the instructions, or its operators face a jail term of two to ten years, as well as penalties if tried and convicted.

Meanwhile, the gaming corporation has made no public acknowledgment of the claims, instead pressing down on its potentially unlawful operations on Twitter.

The lawsuit comes at a time when relations between American authorities and NFTs appear to be at an all-time high. Until date, authorities have been especially tight-lipped about their desire to regulate NFTs as securities, but recent events suggest that this may soon change.

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Harold

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