Virtual casinos in the United States, maily located in Texas and Alabama, are defrauding the public as per the securities regulators in the states.
They were also reportedly selling non-fungible tokens and illegally offering unregistered securities.
According to the Texas Securities Board, in a "high-tech fraudulent securities offering" co-founders of the Sand Vegas Casino Club, Martin Schwarzberger and Finn Ruben Warnke allegedly conducted fundraisers to build virtual casinos.