State securities regulators from Texas, New Jersey, Kentucky and Alabama have ordered the Slotie NFT Tbilisi virtual casino to be shut down.
US regulators considered that the non-fungible tokens offered by the Slotie NFT virtual casino were unregistered securities issued in violation of US laws. Slotie has 30 days to suspend operations, otherwise casino operators face a fine and imprisonment for a period of two to 10 years. The company has not yet commented on the decision of the regulatory authorities.
State Securities Regulators have filed enforcement actions against @SlotieNft! Claiming they are engaging in fraud by selling securitized #nfts. The project could be facing a sentence of 2 to 10 years and a fine if they don’t comply.
NFT Attorney Jeremy Goldman
declaredthat the Slotie virtual casino expectedly attracted the attention of supervisory authorities:
“Slotie NFTs position their tokens as providing their holders with passive income generated through the efforts of the casino and its partners, which is the definition of a security.”
Goldman believes that one of the reasons regulators have accused Slotie of violating securities laws has to do with gambling, which is heavily regulated by state law enforcement.
“I guess part of the reason the US regulators banned the NFT offer is because they are worried about gambling. I think in terms of litigation strategy and enforcement, they decided that the charge of violating the securities law is an easier way to stop the operation of the casino, ”the lawyer said.
According to Goldman, additional charges will be brought against the virtual casino. He believes that now there is a “struggle for power and control.” Regulators want to show: “when it comes to securities, then it is they who should control their supply, even in virtual space.”
Last week, the media reported that the US Securities and Exchange Commission (SEC) suspects Yuga Labs of violating US federal laws in trading the Bored Ape Yacht Club NFT collection and distributing ApeCoin tokens.
Source: Bits

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