FaZe Clan ‘pump and dump’ scam leaves fans broke, FaZe Kay retired, Jarvis, Nikan and Teeqo suspended
A scam where influencers promoted altcoins who later abandoned prompted the Faze Clan to take action against Kay, Jarvis, Nikan, and Teego.
FaZe Clan has announced that Frazier “Kay” Khattri has been kicked out of the organization, while his brother, Jarvis “Jarvis” Khattri, and fellow members Nikan “Nikan” Nadim and Jakob “Teeqo” have been suspended from the organization after they they themselves got involved. in a “pump and dump” encryption scheme.
A statement from FaZe Clan. https://t.co/HnPXpAoSYX
“FaZe Clan has absolutely no involvement in our members’ activity in the cryptocurrency space, and we strongly condemn their recent behavior,” the brief statement read.
The allegations center around a “Save The Children” cryptocurrency that FaZe Clan members were promoting at the time of its launch. Those involved are accused of “pumping and dumping,” the act of buying cheap, often before anyone else can, hyping it up and then selling it when the price inevitably reaches an unsustainable level. Allowing those who have taken the word of influencers to have an asset that will likely never return to the price they bought it at.
All of the FaZe Clan members mentioned in the statement were featured in a video extolling the virtues of the Save the Kids token, and FaZe Kay began extensively promoting it in early June.
Influencers RiceGum and Sommer Ray are also believed to be involved. Together they have more than 69 million subscribers and it is these subscribers that make such a program possible.
Much of the credit goes to YouTuber Coffezilla, who covered the story for the past few weeks and worked to document many of the tweets that those involved tried to remove from the internet.
The coin was built on the Binance Smart Chain (BSC) and positioned as a “charity token,” the promotional video promising to “redistribute wealth” for both holders and charities.
The coin became publicly tradeable on June 12 at $0.00321 a coin, but fell rapidly and more than a week later was worth around half, and on July 2 it is now trading at $0.00135.
Coffezilla’s original video on the subject, uploaded a week ago, drew attention to the issue, although the one posted yesterday increased the pressure considerably, as it showed that FaZe Kay, Jarvis and Nikan had purchased a “pre-sale”, prior to the release. part. was available to the public, and dropped them to varying degrees shortly after release. FaZe Kay sold all of her holdings and Coffezilla shows that she always did, not just with the Save the Children token, but with every token she promoted.
This is not the only instance of FaZe Clan members getting involved in a shady cryptocurrency market as it goes straight to the top, Richard Bengston aka FaZe Banks and FaZe COO recently found himself facing Similar accusations regarding the BankSocial cryptocurrency, with the CEO of that company. , Josh Wingate, telling Mashable that FaZe Banks reneged on a promotional deal that effectively meant he “pumps and flips” the coin. FaZe Kay, in now-deleted posts, also claimed to have been a part of this, having bought the coin and “x2” his money soon after.
FaZe Kay took to Twitter last week to apologize to her fans, but that obviously wasn’t enough to save her FaZe Clan career.
“I want everyone to know that I had no malicious intent to promote alternative cryptocurrencies. Honestly and naively, I thought we all had a chance to win, but we don’t. I didn’t verify any of this with my team in FaZe and now I know I should have. »
“Although I am very passionate about the crypto space, it is extremely complicated and I still have a lot to learn and I advise everyone to take a close look before investing. »
“It was so irresponsible of me to speak publicly about all the pieces without knowing more and knowing now that they can do more harm than good. »
“I am really fighting to let you all down and more importantly all of those whose trust I have lost. I care about my fans and I wouldn’t be where I am today without you. »
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