Richard Banks, co-founder of FaZe Clan, has announced his resignation as CEO amid allegations of involvement in a fraudulent scheme related to the cryptocurrency MLG Coin. The project, launched in early 2025 as a "cultural token for the gaming world," collapsed abruptly after a brief period of rapid growth, sparking accusations of a rugpull.
Token Crash and Dump Allegations
MLG Coin (360noscope420blazeit) debuted in October 2024. Thanks to heavy promotion by Banks, other FaZe Clan members, and streamer Adin Ross, the token's market cap surged from $3 mln to $150 mln within five days. By summer, the price had plummeted, and social media users accused the team of deliberately dumping the coin to lock in profits.
Amid the backlash, a screenshot surfaced in the project's Telegram chat showing Banks calling Ross a "bad actor" and claiming he was used as "exit liquidity" – implying he was leveraged to pump the price before a mass sell-off.
Public Clash With Adin Ross
Banks denied all accusations, stating he had never misled anyone. He blamed Ross for fabricating a false narrative and inciting targeted harassment against him. According to Banks, he sold his tokens at a personal loss of $106.4K. He also claimed a paid smear campaign was launched against him on social media, allegedly costing up to $50K based on insider information.
In response, Ross confirmed the authenticity of the messages but denied any role in the collapse of MLG Coin. He described the situation as "betrayal" and emphasized that he had considered Banks a close friend.
Resignation and Retreat From the Public Eye
Under mounting pressure, Banks announced not only his departure as CEO of FaZe Clan but also his withdrawal from the internet altogether. He said the situation had destroyed his life, and he wasn’t sure whether he would ever return to the industry.
“This is destroying me from the inside,” he wrote on X.
FaZe Banks is a key figure in the FaZe Clan gaming collective, where Ross is also actively involved. Both have previously invested in outside ventures, including the breath freshener brand Death Breath. Ross also holds a stake in FaZe Clan – reportedly around 20%, according to his statements.
Earlier: Streamers Adin Ross and FaZe Banks Plan to Create a Crypto Server in GTA 6
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