Friday, July 2, 2021

Esports organization FaZe clan has suspended three members and dismissed another for their involvement in a cryptocurrency promotion


it's been suggested that this release had many of the hallmarks of a "pump and dump" scheme, a colloquial term for getting high-profile buyers to promote and push up up the value of a token ahead of launch before selling as quickly as possible, extracting as much money out of it as possible before its value crashes.


Faze Clan, a video game group known for its vlogs and streetwear releases, is under hot water over cryptocurrency endorsements that have cost fans money. While a scam has not been outright proven, many are questioning whether or not members of the group capitalized on their fame to put a bad investment in front of millions of young and impressionable followers.

The investigation has been spearheaded by YouTuber SomeOrdinaryGamers in a lengthy video that points out a number of strange coincidences. While the YouTuber starts the investigation with a disclaimer that he is not calling this a straight-up scam, it is clear that what transpired involved a lapse in judgment from multiple Faze Clan members.