Alleged FaZe Clan Crypto Scam Draws Huge Backlash (Kay Responds)

by
Jason Parker
in General | Jun, 28th 2021

Quite a few members of FaZe Clan were involved in the “Save the Kids” Crypto that is now being called a scam by many. A move that initially seemed incredibly suspicious turned out to be exactly that, as the coin crashed. Shortly after the alleged crypto scam was announced, FaZe Clan and others associated with “Save the Kids” have since deleted their tweets about being “Brand Ambassadors”. It really feels like it was one big ponzi/pyramid scheme, where the people at the top made money, and the regular investors got scammed. However, now FaZe Kay has responded to these allegations..

This article is not financial advice of any kind.

A surprising number of people in FaZe Clan were a part of this alleged Crypto scam, too. Nikon, Tiko, Jarvis, Kay, and others. Sommer Ray and Ricegum, who are not in FaZe, also promoted this Cryptocurrency. The scam would work like this: these big-time content creators/esports pros, with 1m+ followers, would advertise the crypto, and get people to dump their money in. Then, once these people have been paid in the currency, they can be sold, and the currency conveniently crashes.

It wouldn’t be so bad if it were a one-time thing with FaZe. FaZe Banks recently promoted BankSocial, with a 10,000 dollar crypto giveaway. This of course sent BankSocial’s value skyrocketing. After this, it tanked to almost nothing, and no winner was ever announced. It’s really unfortunate to see people with such a huge following irresponsibly share things like this to impressionable fans.

Over the weekend, FaZe Kay took to Twitter to offer an apology to the fans afflicted by the crypto scam (and previous scams). He said it was irresponsible of him to promote these without further knowledge. He had this to say on Twitter:


“I want you all to know that I had no ill intent promoting any crypto alt coins. I honestly & naively thought we all had a chance to win which just isn’t the case. I didn’t vet any of this with my team at FaZe and I now know I should have. While I’m very passionate about the crypto space, it’s extremely complicated & I still have a lot to learn & I caution everyone to look closely before investing. It was so irresponsible of me to speak publicly about any coins without knowing more & knowing now that they can do more harm than good. I’m really struggling with the fact that I let you all down & more importantly anyone whose trust I’ve lost. My fans mean the world to me and I wouldn’t be where I am today without you.”

Suddenly, everyone who was openly backing it deleted their posts, but the promotion isn’t gone forever. There are cached versions of the promotional tweets and posts still available for anyone who wants to dig them up. This crypto scam was irresponsible for more than just FaZe Clan. It takes very little time to do some research, or speak to other people you’re associated with to see if something like this is legit. As cryptocurrency is unregulated, it’s not too hard to set up a scam. That’s the price of not being regulated.

It isn’t hard to look into a situation and see if it’s a quick money-making scam, or something legit. Quite a few people in Kay’s Twitter responses say they got friends to invest too and lost money as well. Others were more forgiving, supposedly understanding the nature of cryptocurrency. Hopefully, content creators and influencers in the future can look into these offers beforehand. The “Save the Kids” crypto left a lot of FaZe fans losing money by trusting content creators they looked up to.

This alleged FaZe Clan crypto scam wound up hurting a lot of people financially, and as content creators with such massive followings, it’s up to them to use their platforms wisely. This certainly does not feel like one of those times. It’s also important for fans to consider how they invest their money. Sure, a lot of these coins blow up briefly after someone with a huge social media following promotes them. The risk of a crash after this is serious though, as then people see a way to make money, and sell the coin, making the overall value of the coin go down. So in all things, use caution.

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