FaZe clan expels one member, suspends three more over crypto scam

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The FaZe clan suspended 3 members and launched one entirely for their involvement in a shady “pump and dump” cryptocurrency program.

In June, FaZe members Kay, Jarvis, Nikan, and Teeqo were involved in launching an alt-coin (an alternative to things like Bitcoin and Ethereum) called Save The Kids. The big sale for this particular token was the promise that a percentage of the sales proceeds would go to charity, and Kotaku reports that the coin has attracted many influencers.

Naturally, fans of esports personalities signed up and paid to get their hands on these coins. A day or two later, however, and crypto has done what crypto does best. The coin’s value plummeted, hitting anyone still holding one with a massive loss.

In a statement this week, FaZe management announced that it was not involved in the project and condemned the behavior of the four members. Jarvis, Nikan and Teeqo were suspended indefinitely from the group, while Kay was removed entirely.

A statement from FaZe Clan. pic.twitter.com/HnPXpAoSYX July 1, 2021

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Following several investigative videos promoting YouTubers like Coffeeezilla and SomeOrdinaryGamers, Kay wrote that he had “no bad intentions” with the promotion, claiming that he simply did not do adequate research before proceeding. promote the token.

“I honestly and naively thought we all had a chance to win, which just isn’t the case,” Kay tweeted. “I haven’t checked any of this with my team at FaZe and now know I should have.”

But it has been suggested that this version had many of the characteristics of a ‘pump and dump’ system, a colloquial term to entice high-level buyers to promote and increase the value of a token before it is launched before launching. sell it as quickly as possible. , extracting as much money as possible before its value collapses.

Having previously been accused of being involved in shady crypto schemes, the founder of FaZe Banks distanced himself from these latest accusations by tweeting: “I have never been part of a pump and a dump. . This has never happened, please do your research. My public portfolios. I was not a part of any of this. “

None of the accused FaZe members have spoken in public since their suspension / dismissal.

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