FaZE Clan Crypto Scam: 8 Things to Know About the E-Sports Group and Pump-and-Dump Allegations

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FaZE Clan is the subject of crypto scam claims and has taken action against some of its members.

"Scam coin" spelled out on blocks in front of a crypto token.

Source: Stanslavs/Shutterstock.com

Here’s everything you need to know about the drama surrounding the FaZE Clan crypto scam.

  • The alleged crypto scam has to do with the Save the Kids (CCC:KIDS-USD) cryptocurrency.
  • Members of FaZE Clan were paid to promote the crypto to their followers.
  • The promotion included claims that some of the money spent on the crypto would go to charities.
  • The problem comes from the fact that many people bought into this and the price of the crypto soared.
  • When it did, several members of FaZE Clan reportedly sold their stakes in the crypto.
  • That resulted in the price plummeting, leaving many of the e-sports team’s fans holding the bag.
  • FaZE Clan responded to the allegations by suspending Jarvis Khattri, Nikan Nadim, and Jakob Teeqo until further notice.
  • The harshest punishment came for Frazier “Kay” Khattri, who was kicked off of the team.

Kay released a statement about the matter on Twitter (NYSE:TWTR) earlier this week. It reads as follows.

“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.”

KIDS is trading below one penny as of this writing and is down 36% over a 14-day period.

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Article printed from InvestorPlace Media, https://investorplace.com/2021/07/faze-clan-crypto-scam-8-things-to-know-about-the-e-sports-group-and-pump-and-dump-allegations/.

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