FaZe Clan CEO Steps Down Amid $200M MLG Crypto Scandal, Denies Wrongdoing as Fallout Roils Esports Community
Richard “FaZe Banks” Bengtson, the co-founder and CEO of FaZe Clan, has resigned following explosive allegations linking him to a failed cryptocurrency project that has rocked both the gaming and crypto worlds.
Richard “FaZe Banks” Bengtson, the co-founder and CEO of FaZe Clan, has resigned following explosive allegations linking him to a failed cryptocurrency project that has rocked both the gaming and crypto worlds.
The controversy centers on MLG, a meme coin that surged from a few million to nearly $200 million in market capitalization, only to crash days later in what many are calling a textbook “pump and dump” scheme.
I’ve never scammed anyone a day in my fucking life. The entire narrative is unfair and part of the reason it exists is cause my “FaZe” name is so easily farmed and manipulated.
The fact this is affecting the guys at all, is whack. So for the time being I’m gunna be stepping away…
— Banks (@Banks) July 28, 2025
The drama began in early 2025 when Banks and popular streamer Adin Ross heavily promoted the new MLG token to their massive online audiences. Their endorsements sent the coin’s price soaring, drawing in countless retail investors and fans. However, the euphoria quickly faded as MLG’s value plummeted, wiping out millions in investor funds. Outrage erupted across social media, with accusations that insiders had orchestrated a “rug pull,” profiting at the expense of unsuspecting buyers.
Complicating matters further, leaked group chat messages surfaced on July 28, 2025, appearing to show Banks blaming Ross for the token’s collapse and claiming his own buy-in was used as “exit liquidity.” Ross admitted the message’s authenticity but denied benefiting from the implosion, stating he also lost money live on stream and had no knowledge of underlying manipulative intent.
Faced with mounting scrutiny and a barrage of accusations, Banks issued emotional statements denying any fraudulent activity. He insisted he never sold his holdings and suggested his “FaZe” persona was being unfairly weaponized for internet clout. The mental and reputational toll, he said, was overwhelming—prompting him to step away from FaZe Clan and disengage from social media, possibly indefinitely.
Meanwhile, illicit cross-chain crypto activity surged to over $21 billion by May 2025, tripling from $7 billion in 2023, per Elliptic’s Cross-Chain Crime Report.
Criminal actors are increasingly exploiting decentralized exchanges (DEXs), cross-chain bridges, and anonymous swap services to launder funds, evade sanctions, and carry out large-scale scams.
FaZe Clan itself has remained silent as the saga unfolds, even as pressure mounts from fans and partners for transparency and accountability.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Ahead of Earnings Report, Bank of America Raises Target Price for TSMC: 2nm Capacity Ramp-Up Boosts Sales Expectations and Profit Margins
Ahead of TSMC’s Q3 earnings report, Bank of America Merrill Lynch raised its US stock target price to $620 and maintained a Buy rating. Q3 revenue is expected to exceed the upper end of guidance, with the proportion of 2nm process rising from 3% to 11% in a single quarter, becoming the biggest highlight. Q4 sales are expected to increase by another 11% quarter-on-quarter, targeting a full-year growth rate of 40%. The current stock price corresponds to a forward P/E ratio of 16, which is still at the historical median. Bank of America believes the valuation is “not demanding,” implying approximately 37% upside to the target price.
AI trading cools down and storage chip competition intensifies, Korean stocks plunge over 5%, marking a second consecutive day of sharp decline; SK Hynix drops nearly 8%
On Tuesday, the Korea Composite Stock Index (KOSPI) dropped by as much as 5.1%, triggering the Sidecar circuit breaker mechanism on the exchange and suspending programmatic sell orders for five minutes. Both Samsung Electronics and SK Hynix fell more than 6%, marking five consecutive days of decline. Japan's SoftBank Group plunged over 8%, while AI industry-related stocks such as Tokyo Electron and Advantest also dropped by more than 5%.
Wall Street giants' financial reports tonight: With stock prices trapped in technical correction, even a 20% profit increase can hardly ease triple anxiety
Shares of major US banks hovered in a technical correction zone on Tuesday as the earnings season kicked off, with long-term borrowing costs rising to their highest levels in decades. This has heightened market attention on bank executives’ assessments of US consumer health and credit prospects.
UBS Earnings Season Preview: Strong Momentum from AI Spending, Favoring Lam Research (LRCX.US) and Texas Instruments (TXN.US), Remaining Cautious on Western Digital (WDC.US)
Lam Research (LRCX.US), Texas Instruments (TXN.US), and Western Digital (WDC.US) are set to release their quarterly earnings reports in the coming days. UBS believes that, with continued high spending on artificial intelligence, all three companies are likely to benefit from this trend.
Crypto prices
More
