Texas, Alabama Regulators Ask ‘Metaverse’ Sand Vegas Casino to Stop Selling NFTs

Texas and Alabama Regulators ask ‘Metaverse’ Sand Vegas Casino to stop selling NFTs

Texas and Alabama securities regulators ordered an online casino developer to cease selling NFTs on Wednesday, claiming the company was illegally marketing unregistered securities and defrauding the public.

Sand Vegas Casino Club and co-founders Martin Schwarzberger and Finn Ruben Warnke reportedly raised funds for virtual casinos in the metaverse by selling 11,111 NFTs in a “high-tech fraudulent securities offering.” They allegedly deceived potential buyers into believing the tokens were not securities, according to the Texas State Securities Board.

“What happens in the Metaverse, does not stay in the Metaverse,” says Texas Securities Commissioner.

According to the authorities, Sand Vegas promised buyers of its Gambler and Golden Gambler NFTs a part of virtual casino profits, with annual profits of up to $81,000.

There are currently 4,200 Gambler NFT holders and 624 Golden Gambler NFT holders, according to on-chain statistics. The Gambler NFT has a 30-day average price of 0.3293 ETH (approximately $1030), while the Golden Gambler NFT has a 30-day average price of 1.89 ETH (about $5900).

The cease-and-desist order showed that US officials want to put a stop to NFT. Two men were arrested and charged with defrauding NFT purchasers out of $1.1 million last month.

According to Wednesday’s order, Sand Vegas tokens have been listed on OpenSea, the largest NFT marketplace.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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