Four members of the esports organization FaZe Clan have been punished following criticism of their cryptocurrency endorsement, with one of the four ultimately getting fired from the group.
FaZe Jarvis (who was permanently banned from Fortnite for using an aimbot) Nikan, and Teeqo have been suspended indefinitely. Meanwhile, Kay has been completely removed from the team. In a statement posted to Twitter, FaZe Clan said it doesn’t condone the actions taken by those individuals.
This statement was released after member of FaZe Clan, including Kay and Nikan, promoted a cryptocurrency token in late June that ended up suffering devastating losses. In turn, this caused the group’s millions of fans to reportedly loose thousands of dollars within minutes.
According to a Kotaku report, FaZe Clan and other random influencers like YouTuber Bryan “RiceGum” Quang Le urged followers to invest in a digital currency called “Save The Kids.” It supposedly promised to donate a percentage of the proceeds to charity byway of the Binance Charity Wallet. However, as millions began buying the currency, those who toke part in the presale began “pumping and dumping.” This is a tactic in which early investors sell their goods before the value tanks.
Shortly after this push on followers, the value of “Save The Kids” cryptocurrency tanked. Those who bought into the currency criticized FaZe Clan for it. FaZe Kay went on Twitter to apologize to everyone affected, saying it was “irresponsible of me to speak publicly about any coins without knowing more.”
Despite the apology, FaZe Clan announced on Twitter that it fired Kay, giving him the harshest punishment of all 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.”