The FaZe clan has suspended 3 members and snatched one completely for their participation in a "pump and dump" cryptocurrency scheme.
In June, FaZe members Kay, Jarvis, Nikan and Teeqo participated in the launch of an alternative currency (an alternative to things like Bitcoin and Ethereum) called Save The Kids. The big sale of this particular testimony was the promise that a percentage of the proceeds from the sales would go to charity and Kotaku reports that the currency attracted many influencers.
Naturally, fans of sports personalities signed up and paid to get these coins. A day or two later, though, and crypto did what crypto works best. The value of the coin crashed and hit anyone who still grabbed one with a massive loss.
In a statement this week, FaZe's management announced that it had no involvement with the scheme and condemned the behavior of the four members. Jarvis, Nikan and Teeqo have been suspended indefinitely from the group, while Kay has been completely eliminated.
A statement from FaZe Clan. pic.twitter.com/HnPXpAoSYXJuly 1, 2021
After several research videos on the promotion of YouTubers, such as Coffeeezilla i SomeOrdinaryGamers, Kay wrote that he had "no ill intentions" with the promotion, stating that he simply did not do proper investigation before promoting the testimony.
"I honestly and naively thought we all had a chance to win, which is not the case," Kay said. he tweeted. "I didn't examine any of this with my FaZe team and now I know I should have it."
But it has been suggested that this version had many of the distinctive features of a "pump and dump" scheme, a colloquial term for getting high-profile buyers to promote and increase the value of a testimonial before. of the launch before selling as quickly as possible, taking out as much money as possible before its value falls.
To own previously charged involvement with shady cryptographic schemes, FaZe founder Banks distanced himself from the latter allegations, piulant: "I've never been part of a bomb and dump once. This has never happened, please investigate. My wallets are public. I wasn't part of that."
None of the accused FaZe members have spoken publicly since their suspension / dismissal.