FaZe Clan suspends players allegedly involved in crypto pump-and-dump scheme

FaZe Clan is once again reeling from drama, and this time the damage might be longer-lasting. Decryptnotes that FaZe has punished four players for alleged involvement in a pump-and-dump scheme involving the Save the Kids cryptocurrency project. The eSports team suspended Jarvis (pictured), Nikan and Teeqo, and has permanently removed Kay from the organization.

Save the Kids (aka KIDS) was pitched as a charity that would donate 1 percent of each transaction fee (which itself is 3 percent of the total transaction) to a child-oriented foundation. The creators got influencers at FaZe to promote KIDS ahead of its launch in early June, only to watch as the price crashed by almost 90 percent.

The affected clan members have denied any deliberate involvement. Kay said he had “no ill intent” in promoting KIDS, and that he made a mistake in participating without vetting the effort with the team.

This isn’t even the first time FaZe team members have faced accusations of joining in scams. Kay and clan co-founder were paid to promote another coin, BankSocial, in May — only to sell shortly before exiting the partnership. Banks didn’t reveal the financial connection in Twitter posts he has since deleted.

The crackdown highlights the growing number of eSports players making money outside of competitive gaming, both individually and as a team. Gucci made a Fnatic-badged dive watch, for instance. While it’s not surprising given how players are quickly gaining the kind of celebrity status commonly associated with conventional sports stars, that opens them to similar temptations.

Originally found on Engadget Read More