FaZe Clan CEO steps down amid MLG crypto controversy, lamenting personal ruin: 'Entire life gets wrecked'
FaZe Clan CEO Resigns Amid Cryptocurrency Scandal
Richard "FaZe Banks" Bengtson, the CEO of popular esports organisation FaZe Clan, has stepped down from his role following a major cryptocurrency scandal. The controversy began in early 2025, when Banks and other FaZe members endorsed a cryptocurrency called MLG memecoin.
The token, aggressively promoted by FaZe members including Banks and streamer Adin Ross, surged rapidly in market value before crashing. This led to widespread accusations of a "pump-and-dump" or "rug pull" scheme targeting investors.
Banks denied any intentional wrongdoing, asserting he never scammed anyone and had not sold his holdings. However, leaked group chat messages showed Banks blaming Adin Ross for the crash and suggesting Ross used the token to "exit liquidity." Ross confirmed the messages' authenticity but denied responsibility for the collapse, describing the situation as “sad asf” and rejecting blame.
The intense public backlash, mental toll, and damage to Banks’ reputation and the FaZe brand contributed to his decision to resign and withdraw entirely from internet life. This departure sparked extensive community discussion and ongoing implications for influencer-driven crypto ventures and the accountability of esports organisations in such controversies.
As of now, FaZe Clan has remained silent on Banks' resignation and the swirling allegations. With Banks stepping away, the organisation now faces an uncertain future without its longtime figurehead. The public back-and-forth between Banks and Adin Ross intensified scrutiny and backlash from the online community.
Banks expressed his dissatisfaction, stating, "Sucks my entire life gets ruined over something I didn't even do. The real ones know. I wish I could say I'll be back, but I really don't know if I will." He attributed the backlash to the exploitability of the FaZe brand.
This incident serves as a reminder of the risks associated with cryptocurrency projects promoted by influencers and the need for increased accountability in the esports industry. The rise in deepfake scams in the Ripple community further underscores the importance of due diligence and transparency in the crypto space.
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- Despite the chaos surrounding the MLG memecoin cryptocurrency scandal, Richard "FaZe Banks" Bengtson, the resigned CEO of FaZe Clan, maintains he never scammed anyone, claiming he didn't sell his holdings.
- In the ecosystem of Defi (decentralized finance), celebrities, pop-culture, and social-media are increasingly intertwined with cryptocurrencies, as exemplified by the FaZe Clan crypto scandal involving Ethereum (ETH) token, MLG memecoin.
- The cryptocurrency world has faced a wave of controversies, including the Ripple (XRP) community's deepfake scams, emphasizing the importance of due diligence and transparency when dealing with influencer-endorsed tokens like MLG memecoin.
- The intense backlash and damage to his reputation from the MLG memecoin crypto scandal led to Richard "FaZe Banks" Bengtson's departure from internet life, leaving doubts about FaZe Clan's future without its longtime figurehead.
- As the entertainment industry continues to blur the lines between pop-culture and cryptocurrency, the FaZe Clan's cryptocurrency scandal involving ethereum token MLG memecoin has served as a stark reminder of the risks associated with influencer-driven crypto ventures and the need for increased accountability in the esports industry.
