FaZe Clan has announced the removal of member Kay from the esports organization due to crypto "pump and dump" allegations. Three members have likewise been suspended for their involvement.
"We have made the decision to remove Kay from FaZe Clan, and have suspended Jarvis, Nikan, and Teeqo until further notice," says the statement posted on FaZe Clan's Twitter. It further adds that the organization has "absolutely no involvement with other members' activity in the cryptocurrency space."
FaZe Clan also says that they "condemn" the behavior of the four involved in the alleged pump and dump scheme, and reiterated that the trust and respect of fans have always been their number one priority.
This is not the first time the organization has removed a member due to inappropriate behavior outside of the group. In 2020, FaZe Clan fired former member Barker after allegations of grave misconduct.
FaZe Clan Members' Crypto Pump and Dump Allegations: What Happened
FaZe Clan's decision to remove and suspend certain members of the group comes after allegations of a "pump and dump" scheme surfaced against them.
According to Kotaku, Kay, Jarvis, Nikan, and Teeqo all promoted an altcoin known as the "Save the Kids" token that was released in June. This particular token "promised users that a percentage of the proceeds would go to charity."
Altcoins are alternative cryptocurrencies that have been on the rise as of late.
What followed is an alleged "pump and dump" scheme. A "pump and dump" scheme starts with the value of an altcoin rising after being promoted by an influencer.
"The person paid to promote the coin then typically sells a massive amount of the coin while it's at its peak," according to Dot Esports. As a result, the paid influencer nets a significant amount of money just as the value of the altcoin crashes.
Related Article: Crypto 101 | How to Spot a Pump and Dump and Is It Dangerous?
The "Save the Kids" coin in particular has generated concern among FaZe Clan fans after YouTuber OrdinaryGamer posted a video titled "FaZe Clan and Ricegum Should be Investigated by the Feds..."
The YouTube video's description reads that while the "Save the Kids" charity token may seem like it's good, 'one cursory dive will tell you that this whole operation seems to spark a trove of red flags and abandonment.'
According to Dexerto, OrdinaryGamer's video expounds on the "suspicious background" of the "Save the Kids" token.
FaZe Kay's Twitter Statement
Prior to his removal from FaZe Clan, Kay posted a statement on June 28 regarding his involvement in the "pump and dump" allegations involving the "Save the Kids" charity token.
"I want you all to know that I had no ill intent promoting any crypto altcoins," the statement, which was posted on Twitter, reads. He also admitted that he did not "vet any of this with my team at FaZe."
In subsequent tweets, Kay called himself "irresponsible" for speaking publicly about coins without learning more about them. He also encouraged everyone to be more careful before investing, noting that the crypto space is "extremely complicated."
The suspended members, Jarvis, Nikan, and Teeqo, have yet to comment on their suspension as of writing.
FaZe Clan Founder Denies Involvement
FaZe Clan founder Banks has already previously denied any involvement in a "pump and dump" scheme after deleting a Twitter post published on May 27 that promoted another cryptocurrency.
"To suggest I would ever knowingly scam my following for a quick buck is unfair and simply not true," a statement posted on Banks' Twitter on June 27 reads."
Banks has claimed that he deleted the tweet promoting cryptocurrency two days after the giveaway ended because it is something he's done with all his giveaways. He also reiterated that he was "extremely clear that you shouldn't invest a dollar into this/anything else you can't afford to lose."
Following the news of the removal and suspension of FaZe Clan members, Banks had to defend himself once more, saying in a tweet reply that he has "never one time been part of a pump and dump."
This article is owned by Tech Times
Written by Isabella James
