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Cryptocurrency Fraud: Faze Clan Suspends Members

Esports organization Faze Clan has suspended three members and permanently removed one over a case of cryptocurrency fraud. The organization put out a statement via its Twitter account informing audiences about the suspensions and distancing itself from the scenario.

Faze Clan Members Involved in Crypto Scam

Esports organization Faze Clan has suspended three members and permanently removed one over a case of cryptocurrency fraud. The organization put out a statement via its Twitter account informing audiences about the suspensions and distancing itself from the scenario.

“We have made the decision to remove Kay from Faze Clan, and have suspended Jarvis, Nikan, and Teeqo until further notice,” reads the statement. “Faze clan had absolutely no involvement with our members’ activity in the cryptocurrency space, and we strongly condemn their recent behaviour. The trust and respect of our fans has been, and always will be, our number one priority.”

As pointed out by GameRant, Kay, Jarvis, Nikan, and Teeqo were involved in a cryptocurrency scam which is commonly known as a “pump and dump” or “rug pull” scheme. It involves creating an event which will suddenly increase the value of a stock or cryptocurrency. The manufacturers, who would have purchased the cryptocurrency earlier at a lower cost, then sell while the price is high.

The event manufactured by the group was around a cryptocurrency called Save the Kids, which apparently aimed to redistribute wealth to charity. Along with a few other influencers, they made a video talking about the currency, which saw its value drop after launching. The transparent nature of cryptocurrency transactions allowed investigators to uncover that they had initially purchased a quantity of the currency and sold most of it very quickly.

While the others got a temporary ban, Kay was permanently removed as they were involved in a number of such schemes previously. There have also been accusations stating that the Save the Kids project was started as a way to defraud investors in the first place.

The responses to these suspensions and removal have been mixed. Some followers replied to the tweet saying that Kay shouldn’t be punished so severely due to the amount of time he’s put into Faze Clan; Others have spoken about losing thousands of dollars to the scheme, and that a mere suspension is not enough.

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