Five U.S. states have issued cease and desist orders against the Flamingo Casino Club in the VR world of the Metaverse. State securities boards in Alabama, Kentucky, New Jersey, Texas, and Wisconsin jointly filed a 22-page cease-and-desist order against the club which has been fishing around for investors.
Among the various accusations made by the state securities boards are that the Flamingo Casino Club failed to disclose its Russian ties to its investors, failed to make promised donations to Ukrainian relief efforts, and claimed to be associated with legitimate businesses when no such association existed.
One of these claims was that the Flamingo in Vegas was involved with the online project. The Flamingo Casino Club is not affiliated with the Flamingo Casino in Las Vegas in any way. Though they do share one similarity. The original Flamingo was in part the work of Bugsy Segal, an infamous gangster and a member of Murder, Inc. The online Flamingo also appears to stem from similar criminal origins according to the cease-and-desist order.
In an interview with CNBC, Joe Rotunda, director of enforcement at the Texas State Securities Board said that, “you’re talking about digital assets and anonymous individuals who are concealing their location. So once the money is transferred, we may not be able to get it back, right? It goes into a black hole through the blockchain. People may lose everything."
