Several members of FaZe Clan, the popular esports and entertainment organization headquartered in Los Angeles, came under scrutiny for their involvement in a so-called pump and dump scheme.
FaZe Kay (aka Frazier Khattri) was removed from the house in June 2021. His brother, FaZe Jarvis (aka Jarvis Khattri), and two others, FaZe Nikan (Nikan Nadim) and FaZe Teeqo (aka Jakob), got suspended for falsely promoting an altcoin called Save the Kids.
So, what happened to FaZe Kay?
FaZe Kay attracted criticism for drumming up publicity for Save the Kids, an alternative cryptocurrency, before putting his tokens back onto the market in a short time frame. His endorsement helped inflate the value of the altcoin. Trading it in had an adverse effect, causing big headaches for people who followed FaZe Kay's advice and spent money on the tokens. Here's what happened to FaZe Kay.
FaZe Clan released a statement on Twitter in July 2021. In it, they took a stand against ostensibly fraudulent activities, emphasizing that the "respect and trust" of their fans will continue to be their priority.
"We have made the decision to remove FaZe Kay from FaZe Clan and have suspended Jarvis, Nikan, and Teeqo until further notice," FaZe Clan wrote. "FaZe Clan had absolutely no involvement with our members' activity in the cryptocurrency space, and we strongly condemn their recent behavior."
"The trust and respect of our fans have been, and will always be our number one priority," they added.
FaZe Kay issued an apology on Twitter on June 27, 2021.
"I want you all to know that I had no ill intent promoting any crypto altcoins. I honestly and naively thought we all had a chance to win which just isn't the case," FaZe Kay tweeted. "It was so irresponsible of me to speak publicly about any coins without knowing more and knowing now that they can do more harm than good."
FaZe Kay endorsed several cryptocurrencies before getting kicked out of FaZe Clan.
FaZe Kay might claim that he had no awareness of how cryptocurrency schemes operate, but his previous activities paint a different picture. In the past, FaZe Kay also endorsed Rich Coin, MoonPortal, Safe Galaxy, and Titscoin, per Mashable.
He didn't make clear the terms of his involvement with these cryptocurrencies, and his failure to do so likely left some of his followers thinking that they were about to make a genuinely sound investment.
Take, for instance, Save the Kids, which launched in early June 2021. The website reportedly displayed FaZe Kay, FaZe Jarvis, FaZe Nikan, FaZe Teeqo, and RiceGum as its brand ambassadors.
It's uncertain what the terms of their involvement might have been. Either way, when they put their tokens back on the market, the currency tanked. Save the Kids later put out an announcement stating that the founder has abandoned the project.
Long story short: If you see the "no investment advice" tagline in a tweet posted by a gaming legend, at least consider running in the opposite direction.