Flamingo Club was accused by U.S. authorities of scamming through the use nonfungible tokens, (NFTs), tied to a metaverse Casino.

On Wednesday, the Alabama Securities Commission (Kyle Department of Financial Institutions), New Jersey Bureau of Securities (Texas State Securities Board) and Wisconsin Department of Financial Institutions (Wisconsin Department of Financial Institutions) made an announcement. Alluvial the Flamingo Casino Club has been “fraudulently soliciting NFTs” it claims are tied to ownership rights of a casino in the metaverse, thereby giving token holders a share of any profits. According to the organization, it solicited investors via social media and recruited influencers in order to sell NFTs for the casino.