Explosive Leaks Reveal FaZe Clan’s Crypto Backdoor Deals—Here’s What Went Down

FaZe Clan's crypto controversies just got messier. Leaked internal chats expose shady backchannel negotiations that could rattle investor trust—again.

Behind the scenes: Screenshots show founders discussing off-book token allocations while publicly touting 'community-first' Web3 values. Classic crypto theater.

Why it matters: When esports meets decentralized finance, the house always wins. These leaks confirm what skeptics whispered—some players rig the game before it starts.

Bottom line: Another cautionary tale for crypto-natives chasing influencer hype. Always check the blockchain's receipts—not the marketing slides.

MLG token dump costs users up to $150m

The controversy stems from FaZe Banks’ promotion of 360noscope420blazeit (MLG) memecoin in October 2024. His tweets sent the token skyrocketing to more than $150 million in market cap before collapsing to just $10 million.

MLG memecoin, based on gaming culture, partnered with influencers such as FaZe Banks and Aydin Ross, both popular among gamers. The memecoin appealed specifically to their audience, who saw it as a nod to gaming nostalgia. On July 28, following public scrutiny over his role in the MLG crash, FaZe Banks stepped down as CEO of FaZe Clan gaming.