- FaZe Banks officially resigns as CEO of FaZe Clan, citing stress and backlash from the MLG coin scandal.
- He denies involvement in the alleged scam, calling the crypto collapse emotionally draining and distancing himself publicly.
- Leaked chats show Banks blaming Adin Ross, claiming Ross unknowingly provided “exit liquidity” before the token crash.
FaZe Clan co-founder Ricky “FaZe Banks” Bengston has officially stepped down as CEO of the entertainment and gaming company, citing increasing tension and external criticism stoked by reports involving the ill-fated MLG coin project, a meme cryptocurrency that was being pushed by Kick streamer Adin Ross.
Banks publicly announced his resignation on July 28 with an emotional social media post. In it, he specifically distanced himself from fraudulent activities, stating, “I’ve never scammed anyone a day in my life.”
Then, he proceeded to add that it had taken a personal toll on him and was negatively affecting other FaZe Clan members. That being said, Banks further explained that he was stepping away from FaZe Clan and social media for good.
The scandal began back in early 2025, when several FaZe-branded influencers, including Banks, publicly promoted the MLG coin. The initial token, at first, skyrocketed in value, with hype and influence promotion leading to its growth.
The frenzy, however, swiftly became rage when prices within the coin sharply plummeted during a panic of mass sell-offs. The explosive implosion led to widespread accusations of a “rug pull,” a well-known crypto scam where those involved profit from dumping their tokens as the general public sustains losses.
Also Read | Ondo Shows Bullish Strength, Eyes Major $2 Price Target
FaZe Banks Blames Adin Ross in MLG Coin Leak
Things further intensified on July 28, as a leaked chat supposedly showed Banks shifting blame for the coin’s demise to Kick streamer Adin Ross. In the chats, Banks supposedly stated that Ross was giving “exit liquidity”, implying he unknowingly was being used to dump the token by others just before its collapse.
Adin Ross immediately responded to the leak to confirm that the chat was indeed genuine but denied any involvement with the alleged scam. “The Banks screenshot is real… but MLG being rugged wasn’t me,” Ross tweeted, distancing himself from the allegations but concurring that the chat was real.
Despite the extremely public scandal, FaZe Clan has yet to publicly address FaZe Banks’ resignation or the MLG coin scandal. The company has seen a litany of scandals throughout its history, but the new scandal could cause additional long-term damage to its reputation as it navigates new changes within its leadership and fresh media scrutiny.
With the dust having settled, FaZe Banks and the broader FaZe clan are being asked some very serious questions, not just about the future of the clan but also about the growing intersection between influencer culture and cryptocurrency promotion.
Also Read | Staying Ahead of Cybercriminals as the Threat Landscape Evolves
