FaZe Clan CEO Richard “Banks” Bengtson has stepped down following allegations linked to the failed MLG memecoin, denying wrongdoing but choosing to leave the internet indefinitely amid growing backlash.
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FaZe CEO Banks resigns amid MLG memecoin failure allegations.
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The controversy involves influencer Adin Ross and accusations of a “rug pull” in the crypto community.
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Banks denies misconduct but cites damage to his personal brand as reason for stepping away.
FaZe CEO Banks resigns amid MLG memecoin controversy; discover the latest on the crypto fallout and FaZe Clan’s uncertain future. Stay informed with COINOTAG.
FaZe CEO Banks Resigns Amid MLG Memecoin Collapse
Richard “Banks” Bengtson, CEO of FaZe Clan, has announced his indefinite departure following intense allegations tied to the failed MLG memecoin. Banks denied any wrongdoing, attributing the backlash to the exploitability of the FaZe brand. His exit marks a significant shift for the organization and highlights growing concerns over influencer-led crypto ventures.
What Triggered the Controversy?
The controversy erupted in early 2025 when Banks and other FaZe members endorsed the MLG memecoin, which saw a rapid surge fueled by influencer hype. However, the coin quickly crashed, prompting accusations of a “rug pull” where insiders allegedly profited at the expense of investors. A leaked chat further intensified scrutiny when Banks blamed influencer Adin Ross for the token’s downfall.
How Did Adin Ross Respond to the Allegations?
Adin Ross confirmed the leaked messages but denied any responsibility for the crash, describing the situation as “sad asf.” The public dispute between Banks and Ross amplified community backlash, contributing to Banks’ decision to step away from both FaZe Clan and the internet spotlight indefinitely.
What Does This Mean for FaZe Clan?
With Banks’ resignation, FaZe Clan faces an uncertain future without its longtime CEO. The organization has not issued any official statements, leaving fans and stakeholders speculating about upcoming leadership and strategic direction. This incident underscores the risks associated with influencer-driven crypto projects.
What Are the Broader Implications for Crypto Influencers?
This episode highlights the increasing scrutiny on crypto endorsements by influencers, emphasizing the need for transparency and accountability. Meanwhile, the crypto community is witnessing a rise in sophisticated scams, including deepfake frauds targeting Ripple users, signaling evolving threats in the digital asset space.
Frequently Asked Questions
Why did FaZe CEO Banks step down?
Banks resigned amid allegations related to the failed MLG memecoin, denying wrongdoing but citing damage to his personal reputation and the FaZe brand as reasons for his departure.
Is Adin Ross responsible for the MLG memecoin crash?
Adin Ross acknowledged the leaked messages but denied any involvement in causing the crash, calling the situation unfortunate and refusing to accept blame.
What impact does this have on FaZe Clan?
The resignation leaves FaZe Clan without its CEO, creating uncertainty about the organization’s leadership and future direction.
Key Takeaways
- Banks resigns: FaZe CEO steps down amid MLG memecoin failure allegations.
- Public dispute: Banks and Adin Ross exchange blame, escalating backlash.
- Future uncertain: FaZe Clan faces leadership void and reputational challenges.
Conclusion
The resignation of FaZe CEO Richard “Banks” Bengtson amid the MLG memecoin controversy marks a pivotal moment for FaZe Clan and influencer-led crypto projects. This incident underscores the critical need for transparency and accountability in crypto endorsements. As FaZe navigates this leadership change, the broader crypto community must remain vigilant against emerging scams and maintain trust through responsible practices.
Allegations surrounding a failed memecoin force FaZe CEO Banks to leave the spotlight indefinitely. As silence from FaZe continues, speculation over accountability deepens.
In a dramatic turn of events, FaZe Clan CEO Richard “Banks” Bengtson has announced his departure from the organization.
This followed intensifying allegations about a failed cryptocurrency venture that also involves influencer Adin Ross.
Taking to X (formerly Twitter), Banks strongly denied any wrongdoing, calling the accusations “unfair” and attributing the backlash to the exploitability of the FaZe brand.
Thus, amid the growing toll on his personal brand and also those who are connected to him, he revealed he would be stepping away not just from FaZe but from the internet entirely.
Expressing his dissatisfaction, he added,
“Sucks my entire life gets ruined over something I didn’t even do. The real ones know. I wish I could say I’ll be back, but I really don’t know if I will.”
As of now, FaZe Clan has remained silent on Banks’ resignation and the swirling allegations.
How it all started
The controversy began in early 2025, when Banks and other FaZe members publicly endorsed a cryptocurrency called MLG memecoin.
High-profile influencers fueled the coin’s dramatic surge in value through intense hype and promotion.
However, the momentum didn’t last as MLG quickly crashed, and fans accused the insiders of orchestrating a “rug pull.”
Many pointed fingers at Banks, claiming he misled his followers into investing.
The situation worsened on 28th July when a leaked group chat revealed Banks blaming Adin Ross for the token’s collapse.
“Adin Ross f***ed this up,” Banks wrote, suggesting Ross’s community dumped the coin after Banks bought in, effectively using him as “exit liquidity.”
What’s more?
Ross confirmed the authenticity of the message but denied any wrongdoing, calling the situation “sad asf” and refusing to accept responsibility.
The public back-and-forth between the two influencers further intensified scrutiny and backlash from the online community, leading to Bengtson’s decision to step away from both FaZe Clan and the internet spotlight.
With Banks stepping away indefinitely, FaZe Clan now faces an uncertain future without its longtime figurehead.
As of now, the organization has yet to comment, leaving fans speculating about what lies ahead.
Meanwhile, as the internet deals with the aftermath of one scam, more sophisticated scams are already popping up, with deepfake scams on the rise in the Ripple community.
