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FaZe Banks accused of colluding with Banksocial amidst massive backlash over 'pump and dump' crypto scam

By Matthew Wilkins
Modified Jul 09, 2021 10:48 GMT
Loopholes and U-turns (Image via FaZe Banks/Instagram)
Loopholes and U-turns (Image via FaZe Banks/Instagram)

FaZe Banks, also known as Richard "Ricky" Bengston, has yet again come under fire following the "pump and dump" FaZe crypto scam, which involved several members of the FaZe Clan.

While action has been taken against the members, whether FaZe Banks had any involvement in the matter has left the internet divided.

FaZe Banks maintains that his wallet is public information and that he never asked people to "buy or invest" in any cryptocurrency. He also maintains that the entire FaZe Crypto scam fiasco cannot be pinned on him or the FaZe Clan.

While this is true now, an alleged collaborative partner known as Banksocial has recently spoken about prior allegations. New evidence has come to light, which holds Banks partly responsible for another "pump and dump" scheme that occurred a while ago.

Also Read: FaZe Crypto Scam - FaZe Banks denies involvement in Crypto "pump & dump" controversy

FaZe Banks x Banksocial

In an interview with Mashable, BankSocial CEO John Wingate had a lot to say about FaZe Banks and the entire fiasco. However, to sum up the situation, this was what Wingate had to say:

"They pumped it and then they dumped it. Then he (FaZe Banks) backed out of the deal."

According to his statement, Banks walked out of the deal midway with the money he was paid for the promotion. It sounds like the entire fiasco was an elaborate plan to "pump and dump" and make a profit. However, according to Banks, he never sold a single token. Hence he made zero profit.

While Banks' statement will have to be believed for now due to lack of evidence, what's rather strange is that after calling him out on social media, Banksocial now maintains that there are no hard feelings between them.

This is perplexing, to say the least, given that the company blamed FaZe Banks and his entourage for "pumping and dumping," which subsequently should've led to a loss for the company. Now, out of the blue, things are back to normal, and all blame has been dissolved.

The situation is so strange that even netizens cannot wrap their heads around the entire debacle. Everyone is looking for explanations for this unexpected turn of events.

By the looks of it, the entire FaZe Banks x Banksocial drama is far from over. It might just be the tip of the iceberg. Irrespective of the truth, for now, fans should probably stay away from any "get rich schemes" promoted by influencers or Esports personalities.

Should influencers vouch for or advertise cryptocurrency?

Based on the fact that influencers involved with the project get a chance to invest much before the currency goes public, it means that their investment is peanuts, to say the least. Any profit made is a huge amount, given how the value compounds.

Having said that, the main question that arises is, "Should influencers vouch for certain cryptocurrencies?" In legal terms, advertising is not wrong, and they are well within the norms of carrying out partnership deals.

While this is all great, contention arises when the average joe invests based on the ambassador's popularity and but loses out. While each investor enters knowing the risk, some blame must be shouldered by the brand ambassador who advocated for the coin.

Suffice to say, with the cryptocurrency market booming, this is not the last "crypto scam" that netizens will be reading about. Given how many people blindly rush into "get rich fast schemes," many more similar cases will crop up soon.

Also Read: Adin Ross banned on Twitch for texting while driving during a live stream

Disclaimer: Some aspects of this article reflect the personal opinions of the writer.