On 28 July 2025, Richard "FaZe Banks" Bengtson announced his resignation as CEO of FaZe Clan, declaring his intention to withdraw from 'internet life' entirely. In a striking post on X, he wrote:

'I’ve never scammed anyone in my life... The entire narrative is unfair, and part of the reason it exists is because my "FaZe" name is so easily exploited. It's ridiculous that this is affecting the guys at all. I wish I could say I'll be back, but I really don't know if I will."

He attributed his decision to the immense personal and mental toll of the MLG meme coin controversy, and expressed frustration that his well-known 'FaZe' identity was being exploited unfairly across social media.

Crypto Controversy & Allegations Surrounding MLG Coin

The dispute centered on a $MLG meme coin, which was promoted by FaZe members and streamer Adin Ross in early 2025. Within days, the token's value reportedly surged from a multimillion-dollar market cap to approximately $150–200 million, only to then plummet. Social media erupted with accusations that FaZe had orchestrated a "pump-and-dump" or "rug pull" scheme*.

Banks firmly denied any wrongdoing, asserting that he did not participate in dumping the coin and claiming that his public wallet balance was accurate. However, he was also seen in a leaked group chat blaming Adin Ross for the crash and suggesting that Ross had been used as "exit liquidity". Ross confirmed that the screenshot was genuine, but denied responsibility for the collapse.

FaZe Clan’s Response to the Crypto Scandals

This was not the first time that FaZe Clan had faced scrutiny relating to cryptocurrency. In 2021, amid allegations of a similar scam, members involved in promoting the "SaveTheKids" token, including FaZe Kay, Jarvis, Teeqo, and Nikan, were removed or suspended. FaZe Banks stated that he had made the decision himself and warned investors that they might face legal consequences.

Funding FaZe’s Early CS:GO Team via CSGOWILD

Years before the cryptocurrency controversy, FaZe Clan funded its initial Counter-Strike: Global Offensive team through a gambling website called CSGOWILD, which FaZe members reportedly ran from 2015 to 2017. Banks publicly admitted to co-owning the site, which reportedly generated up to $200,000 per day. This revenue helped finance the acquisition of the G2 Esports CS:GO lineup in early 2016, which FaZe bought for around $1 million.

Although CSGOWILD was not deemed illegal under global standards, it was controversial because it targeted minors and featured unregulated odds. FaZe also failed to fully disclose their ownership of the site when promoting it. Critics on Reddit described this undisclosed promotion as borderline fraudulent and an ethical violation, even if not a legal one.

*A rug pull is when the creators of a project suddenly withdraw all funds and disappear, leaving investors with nothing.