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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.
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.
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.
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.
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.”
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.
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.
