FaZe Clan fires Kay over crypto scams and suspends Nikan, Jarvis & Teeqo. FaZe Clan has parted ways with Kay and suspended Jarvis, Nikan and Teeqo over cryptocurrency drama in which members promoted a “Save The Kids” altcoin before reportedly dumping their investments. YouTuber CoffeeZilla was the first to report on their machinations and involvement in the pump and dump scheme.
How does a pump and dump scheme work?
A pump and dump scam involves artificially inflating prices to lure new buyers into the project. Subsequently, the scammers dump their early-bought coins, causing the price to collapse again. Cryptocurrencies are a hot topic as always, but now many influencers have also jumped on the trend to promote various altcoins.
One particular altcoin, known as the “Save The Kids” tokens, has been promoted by some members of the FaZe Clan. Just a few days after promoting this cryptocurrency, Kay was removed from the organization, while Jarvis, Nikan, and Teeqo were suspended from FaZe Clan until further notice.
Here is what the organization had this to say about it: “FaZe Clan had absolutely nothing to do with our members’ activities in the cryptocurrency space. We do not condone their recent behavior. The trust and respect of our fans has always been and will always be our top priority.”
According to reports, the 4 players were paid to promote the altcoin before “dumping” their own investments. None of them have commented on the drama since their suspension.
Were more people involved?
“I didn’t clear any of this with FaZe and I know I should have,” Kay tweeted in an apology. “It was so irresponsible of me to speak publicly about any coins without knowing more. I know now they can do more harm than good.” From YouTube stars to the biggest Twitch streamers, many have jumped on the cryptocurrency trend in recent months. Even FaZe Clan founder and co-owner Banks promoted a particular cryptocurrency in a May 27 post. The post has since been deleted.
Here’s Banks’ tweet: “This is a project I fuck with heavily and truly believe it’s the next one to pop. $10,000 winner chosen at random in 24 hours. Good luck you sexy fucks. #BSOCIAL (not financial advice lol),”
While keeping quiet about the drama within the FaZe clan, Banks took to Twitter hours later to distance himself from the “pump and dump” allegations. “I have never been part of a pump and dump,” he said. “This never happened. My wallet is public. I was not part of anything.”
If you lost money using the “SaveTheKids” token, you can report it to www.IC3.gov, which will then go to the FBI and FTC.