FaZe Banks Steps Down as FaZe Clan CEO Amid Crypto Controversy

Image: Faze Banks leaves the FaZe Clan

Richard “FaZe Banks” Bengtson has officially stepped down from his position as CEO of FaZe Clan following mounting backlash over his involvement in the MLG Coin controversy—a meme cryptocurrency project accused of being a "rug pull" scam.

MLG Coin, built on the Solana blockchain, was launched in October 2024 and branded as the “culture coin of gaming.” It quickly gained traction after being promoted by Banks, other FaZe Clan members, and streamer Adin Ross. With their combined social media reach, the coin surged from a $3 million market cap to over $150 million in just five days. But the rapid rise was followed by a brutal crash—losing more than 90% of its value by March 2025.

As the situation spiraled, accusations began surfacing online, suggesting that the project was a coordinated pump-and-dump scheme. Critics claimed the group leveraged fan trust and hype to inflate the coin’s price before allegedly cashing out, leaving late investors with worthless tokens. These claims triggered significant public outrage and attracted regulatory attention.

Banks responded to the criticism via social media, insisting he never scammed anyone. “I’ve never scammed anyone a day in my f*king life,” he wrote in a post on X on July 29, adding that the situation had taken a serious toll on his well-being. “For the time being, I’m gunna be stepping away from not only FaZe, but all of this internet st. It’s destroying my life inside and out.”

While stepping down from FaZe Clan and FaZe Media, Banks did not clarify whether his departure is temporary or permanent. “I wish I could say I’ll be back, but I really don’t know if I will,” he said. The organization has yet to name a new CEO or interim leader.

The controversy also pulled in Adin Ross, a prominent streamer with close ties to FaZe Clan. In April 2025, Ross claimed he owned a 20% stake in the organization. He was one of the earliest promoters of MLG Coin and contributed heavily to the coin’s initial success. However, a leaked group chat from the project’s Discord on July 28 showed Banks blaming Ross for tanking the coin’s value, suggesting that Ross’s community "dumped" the coin and used him as "exit liquidity."

Ross responded publicly, acknowledging the authenticity of the leaked messages but rejecting Banks’ narrative. He called the situation “sad asf” and said he was hurt by the accusations. “The truth will come out,” he added, denying any coordinated wrongdoing.

Beyond the fan backlash, the incident may attract legal consequences. According to unconfirmed claims on X, the U.S. Securities and Exchange Commission (SEC) has launched an investigation into Bengtson regarding both MLG Coin and another token called $LIBRA. However, the SEC has not publicly commented on the matter.

This isn’t the first time FaZe Clan has found itself embroiled in a crypto scandal. Back in 2021, several members were linked to the "Save the Kids" token, another alleged pump-and-dump scheme that sparked heavy criticism.

Founded in 2010, FaZe Clan grew from a Call of Duty trick-shotting team into a global esports and entertainment brand. Bengtson was a key figure in that growth, co-founding the group and later taking on executive roles including COO and eventually CEO of both FaZe Clan and FaZe Media.

In recent years, Bengtson oversaw major business transitions. After GameSquare acquired FaZe Clan for $18.5 million in October 2023, he was appointed CEO of FaZe’s independent media division. In mid-2024, he boosted his stake in FaZe Media to 31% following a round of investment led by DraftKings co-founder Matt Kalish. Bengtson also led a content creator “reboot” in April 2024, trimming FaZe’s public roster to just 14 creators.

But the crypto fallout has derailed his leadership. On July 29, Banks officially stepped down, reiterating that he had personally lost over $100,000 in the project and denying that he sold any tokens. "This is the worst scam of all time… because I got scammed too," he stated.

With his departure, FaZe Clan’s future direction remains uncertain. Its esports division continues under GameSquare’s management and is expected to remain operational. However, the media arm of the brand, where Banks held significant influence and stake, faces challenges both in leadership and reputation.

As for Banks, whether he returns to the spotlight or stays away from the internet for good is something only time will tell.