Slotie NFT Charged with Selling Unregistered Securities in Four US States

Metaverse casino Slotie NFT, based in Tbilisi, Georgia, has been banned from selling NFTs in four U.S. states after being charged with violating their securities law. Thus, Slotie NFT is one of the first NFT projects to become a target of U.S. state regulators, specifically those from Kentucky, Alabama, Texas, and New Jersey.

Owners of one or more NFTs, out of the overall 10,000 unique ones that Slotie NFT is selling, received a portion of the income made by the corresponding virtual casino, of which there are 150 in total. However, U.S. regulators had an issue with this, as they deemed those NFTs to be unregistered securities. Slotie NFT now has 30 days to comply with the cease and desist order to avoid fines and possible jail time for its developers.

The U.S. government seems to be directing its attention toward NFT regulation. Two weeks ago, there was news of the Securities and Exchange Commission (SEC) looking into the possible breach of securities laws made by Yuga Labs, the issuer of the Bored Ape Yacht Club NFT collection. Just like Slotie NFT, Yuga Labs could be facing charges of selling unregistered securities.