MADISON, Wis. — The Wisconsin Department of Financial Institutions is warning of a scam involving a Russian-based organization.
The organization, Flamingo Casino Club, is selling nonfungible tokens, or NFTs, that they claim to be tied to a digital casino. The DFI and regulators from four other states allege that Flamingo Casino Club is lying about its operations.
In a statement Wednesday, the five regulators said they filed enforcement actions to “proactively stop this type of fraud and protect the public from irreparable harm.” They said scammers are trying to capitalize on the recent public interest in NFTs.
The DFI said the scam is based in the metaverse, a digital space where people can shop, meet up and work. In theory, users can purchase NFTs to unlock certain experiences and even business opportunities in the metaverse. Purchasing a Flamingo Casino Club NFT purportedly gave investors partial ownership of a metaverse casino. Investors would profit when other users played games at the casino.
The organization claimed that it was creating the digital casino in partnership with Flamingo Las Vegas, an actual brick-and-mortar casino located on the famed Las Vegas Strip. The DFI alleges that this partnership never existed. Flamingo Casino Club allegedly claimed to…
