In Short
The Situation: State securities regulators in Texas and Alabama filed two first-of-their kind enforcement actions against a company selling non-fungible tokens (“NFTs”) to operate casinos in a metaverse.
The Result: The cease and desist orders issued against the company allege various state law violations, including making deceptive and misleading representations to investors that constitute fraud and offering NFTs as securities to the public without first registering them with the state commissions.