Four US state regulators have filed actions against Slotie, a virtual casino that they say lured investors into an illegal gambling operation built in the metaverse.

According to regulators in Texas, Kentucky, Alabama, and New Jersey, Slotie sold more than 10,000 NFTs to investors in the US and beyond. These NFTs, he claimed, would entitle investors to a portion of the company’s profits, effectively converting them into company stock.

Despite selling securities, the company failed to register them with the US Securities and Exchange Commission (SEC). In addition, it did not provide investors with required information, such as the addresses, assets, liabilities, and income of the company or founders.

Slotie is based in Georgia and began operations in October 2021, according to…