FaZe Banks Crypto: Who Is He & Why Is He Involved In The Crypto Scadal?
Richard “FaZe Banks” Bengtson, co‑founder and former CEO of FaZe Clan, has recently come under fire following a high‑profile $MLG meme coin scandal. His involvement in the $MLG coin controversy has triggered major backlash, culminating in his resignation and casting a shadow over the broader influencer‑led crypto space.
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Who Is FaZe Banks?
Richard “FaZe Banks” Bengtson emerged as a leading figure in the esports and content creation world through his role at FaZe Clan, a global entertainment brand founded in 2010. Initially known for trick‑shots and YouTube content, FaZe Clan evolved into a multimillion‑dollar esports powerhouse with divisions in games like CS2, Call of Duty, and Fortnite.
In 2024, following the corporate restructuring of FaZe Holdings, Banks was appointed CEO of the newly formed FaZe Media. Under his leadership, the brand pivoted from a competitive gaming focus to a broader media and lifestyle company. FaZe Media expanded its footprint into branded merchandise, creator-led platforms, and long-form content—firmly entrenching Banks as the face of internet culture and influencer marketing.
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The Truth Behind the $MLG Crash: How FaZe Banks Got Involved?
MLG Coin, officially known as 360noscope420blazeit, was a Solana memecoin that soared to a market cap of over $166 million in January, before crashing more than ninety percent by the beginning of March
The token received early endorsements from high-profile internet personalities, including FaZe Banks and Adin Ross, with coordinated promotional activity helping to pump its price in January.
Shortly thereafter, the token collapsed, sparking accusations of a “pump-and-dump” or “rug pull,” where insiders allegedly withdrew funds at peak valuation, leaving retail investors with worthless tokens.
In the wake of MLG’s crash, Banks and Ross were accused of pulling the rug on the token, prompting its subsequent decline.
FaZe Banks strongly denied any wrongdoing, posting on social media, “I’ve never scammed anyone a day in my f**king life.”
Still, the fallout from the MLG Coin scandal has been damaging. The coin’s market cap ballooned from $3 million to $150 million in just five days, which is a classic sign of a pump-and-dump scheme. The sudden spike, followed by a rapid decline, sparked suspicion.
Adding to the drama, popular content creator Adin Ross, who has collaborated frequently with FaZe Clan, also promoted MLG Coin. Ross claimed a 20% stake in FaZe Clan earlier this year, intensifying the spotlight on the organization’s involvement with the meme coin. His promotion helped amplify the hype, contributing to the token’s rapid rise and volatile market behavior. This situation has further blurred the lines between entertainment, influencer marketing, and crypto investment risks.
Besides, in a leaked group chat message shared on July 28, Banks blamed Ross for the token’s collapse, writing, “Adin Ross fucked this up, this community dumped on him buying. Used him as exit liquidity. His ego got hurt, blamed Frank. Him and Frank got into it privately, Adin despises Frank and spins and drives a narrative about Frank selling.”
Ross responded publicly to Banks’s accusations on X, confirming the screenshot’s authenticity and expressing his disappointment over the remarks.
“There’s a reason that entire house is silent,” Ross posted. “I’m just more hurt on the fact someone I call my brother is behind my back.”
In response to the growing backlash, Banks took to social media to announce that he would be stepping away from FaZe and “all this internet shit.”
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What Can We Learn From the MLG Crypto Meltdown?
This episode highlights a crucial lesson for crypto investors, especially those interested in meme coins.
Influencer Marketing Risks
The rapid rise and fall of $MLG underscore how influencer-driven hype can dangerously inflate token valuations without transparency or lasting fundamentals.
Lack of Governance and Transparency
No audit reports, transparent token distribution, or accountable ownership structure were shared, raising red flags typical of many short-lived meme coin scandals.
Reputation as Collateral Damage
FaZe Clan’s brand suffered deeply from association with the controversy—highlighting that even high-profile creators are vulnerable to reputational fallout in the crypto world.
Need for Due Diligence
The episode reaffirms that casual investors should treat celebrity endorsements critically and prioritize projects with verified tokenomics, audited code, and governance safeguards.
In conclusion, the allure of quick profits from influencer-driven hype can be intoxicating, but it often masks significant risks. Investors are urged to scrutinise the fundamentals of any token before committing funds. Those that emphasise community loyalty and tangible benefits can offer more sustainable value than tokens built solely on social media buzz.
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What’s Next in the Fallout?
Banks’ departure has created a leadership vacuum at FaZe Clan, with no immediate successor announced. Veteran member FaZe Adapt acknowledges the crisis but remains optimistic about the organization’s resilience, expressing belief that FaZe can prevail through transparency and collective effort.
Meanwhile, internal conflicts within FaZe surfaced, with member FaZe Rain publicly criticizing Banks for shirking accountability, especially after he blamed Adin Ross in the leaked messages.
No official legal charges have been filed, but the scandal has heightened scrutiny over influencer-driven crypto projects. The case serves as a cautionary tale for scrutiny-resistant ventures that rely heavily on personal brands without solid fundamentals or governance structures.
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Conclusion
The MLG token scandal has damaged the reputation of Richard ‘FaZe Banks’ Bengtson and undermined investor confidence in cryptocurrencies endorsed by influencers. Although no formal legal determinations have been made, allegations of market manipulation and a potential rug pull have led to Banks’ resignation and an uncertain future for FaZe Clan.
This incident highlights the importance of transparency, credible tokenomics and investor vigilance. In a sector driven by hype and rapid growth, careful scrutiny is essential to safeguarding both personal reputation and financial integrity.
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