Two weeks ago, former Faze member Frazier "Kay" Khattri was ripped from the competitive gaming clan after he and three others were pushing a shady "pump and dump" cryptocurrency scheme. Now, the youtubers who helped break the story say Kay is hitting them and stopping receiving warnings to keep the news from spreading further.
Kay, along with three members of Faze, now suspended, helped promote a new “Save the Kids” cryptocurrency, the sales of which would be ceded in part to charity. Of course, shortly after the launch, the value of the sale crashed, leaving buyers with a massive loss while developers like Kay allegedly banked.
Coffeezilla, one of the YouTubers who made videos exposing the immediate collapse of the release of Save The Kids that Kay helped promote, wrote in Twitter yesterday the former Faze member threatened legal action if he did not withdraw his videos on the subject, claiming that they caused him to lose "millions of revenue".
BREAK: @FrazierKay sent me a letter of cessation and withdrawal yesterday for my SaveTheKids video. He says I lost him "millions of revenue" and if I don't delete my videos, he'll sue me. SEE 👇 https://t.co/EBkOZCZl3U pic.twitter.com/bB90t5cIHMJuly 14, 2021
The R&D letter, visible on Imgur (via Kotaku), accuses Coffeezilla of extortion for asking Kay to comment on his investigation. It is true that the message quoted has a somewhat threatening tone, with Coffeezilla supposedly writing:
"Kay, I'm a serious man. You have to start talking. We've found many more things about you, and if you hide behind these 2-minute statements, it'll never work."
He also cites several false and defamatory statements by Coffeezilla about his suggestion that Kay "threw all his tokens (Save the Kids) immediately" and that he has a history of "throwing away almost every cryptographic project he has participated in."
Kay's lawyers have demanded that Coffeezilla retract his statements and his videos, otherwise he will be sued for the alleged damages Kay is seeking, a lawsuit that, according to Coffeezilla, may also affect other YouTubers who covered the encryption scheme.
All this time, Kay himself has been trying to paint himself as a victim. In a dated video July 9th, Kay begs viewers that "please, please don't believe what you hear online," they explain that his team has discovered evidence that a third party allegedly ran this scheme and manipulated several members of Faze to make- ho.
“We’ve found significant evidence that indicates that a dishonest person has abused their trust in me to swindle everyone,” Kay explains. "This person won my trust and the trust of my friends, even though he encouraged us to be the public face of his plan."
With Coffeezilla it shows no sign of regression (having used the C&D warning to publish another YouTube video), there is a high probability that this procedure could reach the courts.