The founder of the Esports organisation says Faze Clan Crypto Scam allegations have resulted in him removing several members in order to distance the group from some of the activities.
FaZe Banks (real name Richard Bengston), one of the founders of the popular Esports group said he “made the call” to remove several of the members following the allegations. Frazier “Kay” Khattri, and his brother Jarvis along with Nikan and Teeqo have been suspended indefinitely as a result of their involvement in the Save the Kids cryptocurrency, which is accused of promoting a “Pump and Dump” scheme.
The scam involved a BEP-20 called Save The Kids ($KIDS) which was touted to ‘redistribute wealth to both Hodlers and children’s charities , and was peddled by some of the huge influencers to their millions of followers. Once the price rose due to significant buying, the influencers began dumping their tokens, crashing the value of the token by over 50% in just over a week.
The token was supposed to have an “anti-whale” codebase, which prevented large holders selling large sums all at once (requiring a 24 hour cool-down period between sell orders), and this was one of the elements which was hyped by the influencers, however the codebase appears to have been altered once the Save The Kids crypto went live, meaning these whales could simply place sells within 5 minutes of the last one.
FaZe Clan Crypto Scam uncovered by YouTubers
The Save the Kids crypto came to the attention of several prominent YouTube personalities, including SomeOrdinaryGamers and Coffeezillla, and their investigations into the scheme seem to have some pretty convincing evidence of a pump and dump scam. Coffeezilla noted that Jarvis sold 2/3rds of his holdings within days of the launch, whilst Kay sold all but 4 of his entire wallet containing 6.2 Million tokens, all whilst they continued to promote the token as a solid long term investment.
On the 1st July, Coffeezilla posted this video entitled “This MASSIVE influencer scan just got worse” with over 1M views to date. In the comments section of the video, he updates his viewers that the FaZe Clan members had been suspended, and encourages anyone who lost money to report it to IC3 and the SEC.
If you lost money to “SaveTheKids” Token, you can report it to www.IC3.gov, which goes to the FBI and FTC. Also you should report this to the SEC. You have been defrauded intentionally, and you deserve justice.Coffeezilla
In a video shared by Dexerto, Banks was interviewed and said that the “ball is in their court” when asked if the suspensions are permanent, which although it doesn’t tell us much does seem to suggest that the bans may be there only whilst the negative publicity is playing out.
FaZe Banks also didn’t give a direct answer to the question as to whether they would be allowed to return to FaZe Clan if they apologised saying “I can’t say that, all I can say is, like I said, everyone is looking for an explanation, everyone wants to know what’s going on… it’s up to them”.
“Bro, those are my brothers, you know what I’m saying? Those are legit my brothers. We will see what they got to say,”FaZe Banks (Richard Bengston)
The Save the Kids crypto website is now down, and many other influencers involved appear to have deleted their posts and previous videos relating to the token.