Arcade.DAO, an NFT project that claims to offer a virtual arcade for Ethereum wallets, is under scrutiny from the crypto community for allegedly being a scam and committing copyright infringement. 

ZachXBT, a prominent on-chain sleuth, took to Twitter on March 29th to call out Arcade.DAO for being a possible scam and violating copyright laws by using copyrighted materials in their arcade games. He advised people to “avoid it at all costs.”

ZachXBT also referred to the history of NFT Machine, the alleged scammer behind Arcade.DAO, who threatened to harm ZachXBT in 2022. NFT Machine was previously accused of defrauding investors in a scam known as OpeNFT, which rug-pulled and left over 130 people who invested 277 ETH in it with nothing. Eventually, Tyler Gaye, the person behind NFT Machine, was ordered to pay $275,000 to seven investors.

The use of copyrighted materials in Arcade.DAO’s arcade games have also raised concerns about potential copyright infringement issues. The project claims that its next-generation games will comply with DMCA and will release an official statement later this week regarding its stance on copyright.

The attention drawn to Arcade.DAO’s alleged scam and copyright infringement highlight the risks associated with investing in NFT projects. Investors should exercise caution and conduct thorough due diligence before investing in any NFT project to avoid falling prey to scams and other fraudulent activities.

It is unclear at this time whether or not judicial action will be taken against Arcade.DAO for their claimed fraud and property violation. However, this will undoubtedly lead to even more criticism and scrutiny of the crypto industry.