The FaZe crypto catastrophe: An influencer "scam" that spiraled out of control

In the era of the crypto boom, piggybackers have always cropped up. This time, three FaZe Clan members bit off more than they could chew in the crypto "pump and dump" scandal.

While FaZe Kay has been permanently ejected from the clan, Jarvis, Nikan, and Teeqo have been suspended until further notice. Amidst the chaos, FaZe Clan co-founder Richard "Banks" Bengston has also been called out for lying about his involvement in the scam.

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A look into the FaZe Clan crypto scandal

While I’m very passionate about the crypto space, it's extremely complicated & I still have a lot to learn & I caution everyone to look closely before investing.

— Kay (@FrazierKay) June 27, 2021

I'm really struggling with the fact that I let you all down & more importantly anyone whose trust I've lost. My fans mean the world to me and I wouldn’t be where I am today without you.

— Kay (@FrazierKay) June 27, 2021

Capitalizing on the crypto boom, many influencers from FaZe took to social media to promote a token of their choice, namely "SaveTheKids."

After aggressively promoting the currency on social media, these influencers partook in what's called "pumping and dumping." This is a process of inflating a currency's value via false or misleading statements only to withdraw investment at a higher value causing the crypto's value to drop significantly.

FaZe Clan was forced to release a statement where they denied knowledge of the influencer's actions. Former members Kay and suspended members Jarvis, Nikan, and Teeqo, have been held accountable for the scheme. Fans who trust them are livid.

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

— FaZe Clan (@FaZeClan) July 1, 2021

FaZe Banks also made an effort to distance himself from the controversy by stating that he had nothing to do with any "SaveTheKids" dealings.

I don't know how this isn't 100% clear at this point, but I had zero involvement or knowledge of this SaveTheKids garbage and neither did FaZe Clan. The people involved acted as individuals and did all that shit on their own and have been removed as a result.

— FaZe Banks (@Banks) July 7, 2021

The statement would have gone over fine if eagle-eyed fans hadn't uncovered a now-deleted tweet by Banks:

“This is a project I f*** with heavily and truly believe it’s the next one to pop. $10,000 winner chosen at random in 24 hours. Good luck you sexy f****. #BSOCIAL (not financial advice lol).”

After denying the claims, it seems that Banks has been called out by Banksocial, who claim that they definitely "pumped it and dumped it." In an interview with Mashable, Banksocial CEO John Wingate claimed the promotion wasn't something Banks did for charity. Wingate said Banks signed a deal to be a brand ambassador for the token and made a certain number of promotional posts.

The now-deleted tweets by Banks

Banksocial's statement lays the debate of "whether or not they knew" to rest as signs of collusion are evident front and center. FaZe Clan has dug itself a deep hole that keeps getting deeper with every untruth they tell their audience, and it remains to be seen how far this goes.

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