Richard “FaZe Banks” Bengtson, the co-founder and CEO of FaZe Clan, has resigned following explosive allegations linking him to a failed cryptocurrency project that has rocked both the gaming and crypto worlds.
The controversy centers on MLG, a meme coin that surged from a few million to nearly $200 million in market capitalization, only to crash days later in what many are calling a textbook “pump and dump” scheme.
I’ve never scammed anyone a day in my fucking life. The entire narrative is unfair and part of the reason it exists is cause my “FaZe” name is so easily farmed and manipulated.
The fact this is affecting the guys at all, is whack. So for the time being I’m gunna be stepping away…
— Banks (@Banks) July 28, 2025
The drama began in early 2025 when Banks and popular streamer Adin Ross heavily promoted the new MLG token to their massive online audiences. Their endorsements sent the coin’s price soaring, drawing in countless retail investors and fans. However, the euphoria quickly faded as MLG’s value plummeted, wiping out millions in investor funds. Outrage erupted across social media, with accusations that insiders had orchestrated a “rug pull,” profiting at the expense of unsuspecting buyers.
Complicating matters further, leaked group chat messages surfaced on July 28, 2025, appearing to show Banks blaming Ross for the token’s collapse and claiming his own buy-in was used as “exit liquidity.” Ross admitted the message’s authenticity but denied benefiting from the implosion, stating he also lost money live on stream and had no knowledge of underlying manipulative intent.
Faced with mounting scrutiny and a barrage of accusations, Banks issued emotional statements denying any fraudulent activity. He insisted he never sold his holdings and suggested his “FaZe” persona was being unfairly weaponized for internet clout. The mental and reputational toll, he said, was overwhelming—prompting him to step away from FaZe Clan and disengage from social media, possibly indefinitely.
Meanwhile, illicit cross-chain crypto activity surged to over $21 billion by May 2025, tripling from $7 billion in 2023, per Elliptic’s Cross-Chain Crime Report.
Criminal actors are increasingly exploiting decentralized exchanges (DEXs), cross-chain bridges, and anonymous swap services to launder funds, evade sanctions, and carry out large-scale scams.
FaZe Clan itself has remained silent as the saga unfolds, even as pressure mounts from fans and partners for transparency and accountability.
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