Metaverse casino served emergency cease and desist to halt NFT sales
A metaverse casino has been hit with simultaneous cease and desist orders from four state enforcement bodies across the United States, who have deemed the firm’s nonfungible tokens (NFTs) to be unregistered securities.
Over two NFT collections offered by metaverse casino Slotie, the tokens are said to offer access to the metaverse casino, staking rewards, revenue split from its games, lotteries, and native token WATT.
However, the regulators don't appear pleased with how the platform has marketed the NFTs and its alleged lack of securities registration.
On Oct. 20, Texas, Kentucky, New Jersey, and Alabama state securities boards submitted orders for Slotie to cease and desist its operations, citing the platform's lack of state registration and the offering of unregistered securities via NFTs.
“The actions accuse Slotie of issuing 10,000 Slotie NFTs that are similar to stock and other equities. The Slotie NFTs purportedly provide investors with ownership interests in the casinos and the right to passively share in the profits of the casinos,” an Oct. 20 statement by the Texas State Securities Board reads.
The agencies also accused the organization — which it believes to be based in the country of Georgia — of providing misleading promotional information and concealing key financial info among other accusations.
The cease and desist order of the New Jersey Bureau of Securities argues that Slotie is offering securities that are not registered with the Bureau, “federally covered,” nor exempt from registration.
It also accuses the platform of failing to provide all of the required disclosures of operating a gambling platform while also providing misleading information and failing to register as a broker-dealer.
In particular,
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