N.J. Seeks to Shut Down Entity Selling NFTs as Unregistered Securities
New Jersey’s Bureau of Securities, coordinating with its counterparts in Alabama, Kentucky and Texas, issued a cease and desist order Thursday to halt an online entity operating from the former Soviet republic of Georgia from offering unregistered securities in the…
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form of non-fungible tokens tied to an online slots game and the metaverse, said the office of Attorney General Matthew Platkin. The order directed the online entity, Slotie, to immediately stop offering NFTs purported to raise capital relating to online gaming and a metaverse in violation of New Jersey securities laws. The offerings, called Slotie NFTs and Slotie Junior NFTs, provide investors the right to “passively share revenues from an online slots game distributed to third-party casinos and the right to passively share in the profits,” it said. The bureau found that Slotie NFTs are securities and are not registered with the state, as required by law, it said. The bureau also found that Slotie is offering the unregistered securities “while fraudulently concealing material information from investors, including Slotie’s assets and liabilities, its anticipated use of capital, and key risks tied to NFTs and metaverses,” it said.