State Regulators Warn Investors About The Metaverse

Posted on September 19th, 2022 at 12:51 PM
State Regulators Warn Investors About The Metaverse

From the Desk of Jim Eccleston at Eccleston Law.

While the metaverse is fake, real fraudsters within the virtual world can cause actual financial harm, according to state securities regulators.

The metaverse is an online immersive environment designed by augmented reality technology which permits people to live and interact as they would in the real world via personal representations, which are called avatars. However, the virtual reality world lacks financial regulation, which may encourage fraudsters to attempt to scam participants, according to the North American Securities Administrators Association (NASAA). “Scams inside metaverse virtual worlds can be similar to real-world scams, but they are likely to include a virtual component such as crypto assets or virtual real estate”, according to NASAA.

Metaverse participants can invest in virtual real estate, non-fungible tokens and businesses operating within the virtual world. However, state regulators are encouraging investors to remember that all investments feature some inherent risk, adding that “there’s no such thing as a sure thing”. While some legitimate investment advisors are open for business in the metaverse, NASAA has recommended that investors stick with firms that are registered with federal and state regulators.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, metaverse

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

November 7, 2025
FINRA Suspends Former Wells Fargo Broker Over Unapproved Real Estate Venture

The Financial Industry Regulatory Authority (FINRA) suspended former Wells Fargo broker George J. Cairnes for four months and fined him $25,000 for engaging in unapproved real estate outside business activity, according to a settlement letter issued.

November 6, 2025
Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.

November 5, 2025
Former Wells Fargo Representative Suspended for Unauthorized Texting and Obstruction

The Financial Industry Regulatory Authority (FINRA) has suspended former Wells Fargo representative Eyan M. Townsend for one year and fined him $10,000 for using personal text messages to conduct business and attempting to obstruct an internal investigation by deleting those communications.