Wisconsin files enforcement to stop metaverse investment fraud by Russian scammers

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Published: May. 11, 2022 at 10:16 PM CDT
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MADISON, Wis. (WMTV) - Wisconsin joins five other states in filing an enforcement against the company Flamingo Casino Club for scamming United States residents out of money using fraudulent investment schemes.

The company, which is based out of Russia, falsely claims to have a partnership with Flamingo Las Vegas, an established casino in Nevada, according to the state regulators.

The company invites users into a metaverse casino where they can play virtual craps, blackjack, roulette, and other common casino games with an avatar that they create. The Flamingo Casino Club then offers users nonfungible tokens, or NFT’s.

These NFT’s are then marketed by solicited investors through the company’s website and social media accounts instead of financial professionals.

The regulators also allege that the company uses a phony address and phone number and goes as far to even conceal its physical location and its Russian ties.

According to the regulators, it’s common for online scammers to remain anonymous so that when their schemes collapse, they can easily disappear. The orders filed by the states suggest that the Flamingo Casino Club is doing just that.

Other than Wisconsin, Alabama, Kentucky, Texas, and New Jersey all filed an action against the Russian company.

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