FaZe Jarvis & Kay face the wrath of the Internet after their cryptocurrency scam comes to light

Earlier today, FaZe Clan released a statement announcing the removal of Frazier “Kay” Khattri from the organization along with suspensions for Jarvis “FaZe Jarvis” Khattri, Jacob “FaZe Teeqo,” and Nikan “FaZe Nikan” Nadim.

The four content creators have come under severe scrutiny in recent weeks following their involvement in an alleged scam that aims at “pumping and dumping” various cryptocurrency altcoins. Altcoins, also referred to as “memecoins” or “shitcoins,” are cryptocurrencies based on specific jokes or money-making schemes that are considered even more volatile than most cryptocurrencies.

FaZe Clan came under scrutiny when Richard "FaZe Banks" Bengston, one of the founders of the organization, posted a tweet promoting an altcoin named BankSocial. FaZe Kay had responded to the tweet and claimed that he has managed to turn a “2X” profit on the cryptocurrency.

I lost $8500 due to them promoting this coin, that was guaranteed to make me money. My wife is threatening to leave me. I don't know what to do anymore.

— Hydro (@hydrowyd) July 2, 2021

Im down $500k because of you, I also lost my wife, house, and car, thanks Faze jarvis

— 𝓦𝓾 (@WuGOAT) July 1, 2021

This led to accusations of “pumping and dumping” against FaZe clan members as the price of BankSocial dropped within 24 hours. People claimed that if FaZe Kay did indeed end up doubling his money, it could only be due to some “heads-up” that he got from FaZe Banks, or the cryptocurrency platform in question.

A statement from FaZe Clan. pic.twitter.com/HnPXpAoSYX

— FaZe Clan (@FaZeClan) July 1, 2021

Regardless, Kay has now been removed from FaZe clan. FaZe Jarvis, FaZe Teeqo and FaZe Nikan have been suspended until further notice.

FaZe clan embroiled in cryptocurrency scam/ FaZe Kay removed permanently after criticism from the internet

Initially, Matt Binder of the Mashable exposed the elaborate scam as well as the fact that most content creators promoting these altcoins tend to delete their social media activity within days of “making a quick buck.” The content creators were accused of buying coins on the cheap or receiving them for free and then selling it off to their followers when they showed a temporary spike in value. The temporary rise was, in most cases, a result of influencers/content creators pushing the altcoins in the first place.

PSA from insiders whove been offered these deals pic.twitter.com/MpdeWWismU

— NELK (@nelkboys) June 6, 2021

FaZe Banks did a giveaway of around $10k worth of BankSocial coins that are said to be worth less than $1k now. Additionally, he did not mention the cryptocurrency after May 28th despite a number of fans inquiring about it. Instead, FaZe Banks posted a response on 27th June and claimed that he did not sell even a dollar’s worth of his BankSocial coins to followers. He also claimed he did not make any money off the alleged scam and had no intention to dupe his followers.

@coffeebreak_YT pic.twitter.com/efh3Ni91Sx

— FaZe Banks (@Banks) June 26, 2021

And the $10,000 transfer was to giveaway winner @Skeeters99 in case you’re curious as to why that went somewhere

— FaZe Banks (@Banks) June 26, 2021

However, the same cannot be said about other FaZe clan members. FaZe Kay posted a tweet on 27th June claiming that he had no idea that the altcoin in question was part of a scam. The content creator claimed he did not vet the entire promotion with the organization and now knows that “he should have.”

I want you all to know that I had no ill intent promoting any crypto alt coins. I honestly & naively thought we all had a chance to win which just isn’t the case. I didn't vet any of this with my team at FaZe and I now know I should have.

— FaZe Kay (@FaZeKay) June 27, 2021

Again, Matt Binder of the Mashable also reported that FaZe Banks was paid to be an ambassador for BankSocial but later backed out after the first tweet due to a “loophole.” Regardless, the organization has now officially taken action against multiple creators.

Joined @FaZeClan as lead graphic designer 🥳 pic.twitter.com/KsT0ELB6bo

— Santar (@SantarFN) July 2, 2021

FaZe Kay being kicked from FaZe for savethekids coin should teach any new generation future “influencer” to do your research when your friends approach you with ideas for making money. Life is a long game, you might not realize how getting caught up works until it’s too late.

— Censor (@Censor) July 2, 2021

This isn’t the FaZe Clan we used to know and love anymore. It’s a clout scheme and scam. Sad. pic.twitter.com/IErwacIibM

— KJ (@KJTheGod) July 2, 2021

Faze Clan be like pic.twitter.com/UQQ4iYHg6K

— FrostedBlakes (@BlakeGarman09) July 2, 2021

FaZe Kay has been removed due to his involvement and claims, while Jarvis, Nikan and Teeqo have been suspended until further notice. Updates on the matter are expected to be released in the coming time.