Four members of the entertainment and esports organization FaZe Clan have been reprimanded following criticism of their shady cryptocurrency endorsement, with one individual ultimately getting fired from the group.
FaZe Jarvis (who was permanently banned from Fortnite in November 2019 for using an aimbot) Nikan, and Teeqo have been suspended indefinitely, while Kay has been removed from the team. In a Twitter statement, FaZe Clan said it doesn't condone the actions of those involved with the scheme.
A statement from FaZe Clan. pic.twitter.com/HnPXpAoSYX
— FaZe Clan (@FaZeClan) July 1, 2021
This comes after members of FaZe Clan, including Kay and Nikan, promoted a cryptocurrency token in late June that ended up imploding, causing the group's millions of fans to reportedly lose thousands of dollars in a matter of minutes.
According to a Kotaku report, FaZe Clan and various other influencers like YouTuber Bryan "RiceGum" Quang Le urged followers to invest in a digital currency called "Save The Kids" that supposedly promised to donate a percentage of the proceeds to a charity via the Binance Charity Wallet. However, just as millions of people opened their wallets and handed over their cash, some of those who had taken part in a presale began "pumping and dumping," a process in which investors sell their goods before the value plummets.
Not long after, the value of the "Save The Kids" cryptocurrency tanked. Those who bought in reported lost thousands and criticized FaZe Clan for it. FaZe Kay took to Twitter to apologize to everyone affected, saying it was "irresponsible of me to speak publicly about any coins without knowing more."
But it seems the apology wasn't enough. FaZe Clan announced on Twitter that it had fired Kay, giving him the worst punishment of those involved.
"FaZe Clan had absolutely no involvement with our members' activity in the cryptocurrency space, and we strongly condemn their recent behaviour," the organization concluded in its statement. "The trust and respect of our fans has been, and will always be, our number one priority."
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