US-based virtual casino Slotie had been operating for roughly a year, offering users access to an interactive Metaverse and NFTs that gave holders admission to its gambling network. Now, Slotie has found itself in hot water with the law as it has been ordered to stop the sale of its NFTs by regulators in four different states.
As per recent reports, Slotie has been hit with cease-and-desist orders from regulators in Texas, Kentucky, New Jersey and Alabama. The reason for this is that Slotie has been running what is being called an illegal gambling operation.
Prior to this, Slotie had sold about 10,000 of its NFTs, which it described as “your ticket into the largest and fastest-growing online casino network on the blockchain.”
Unfortunately, the company had neglected to provide some vital information to its investors and regulators, including its assets, liabilities, revenue, and the contact information of the business and its founders. Now, it has been ordered to cease NFT trading until its due registration is completed. If it does not, Slothie faces up to $10,000 in fines.
According to the Texas state securities board director, Joe Rotunda, regulators and the public need to be cautious about Metaverse and NFT-backed investments as they become more popular.
“The latest metaverse investment products — NFTs that purport to provide passive income — often bear significant undisclosed risks. These risks are often significant, and investing in virtual realities can leave investors virtually broke,” he said.