FaZe Clan fans were left in a state of shock when it was alleged that some of its members including FaZe Kay, were involved in a charity cryptocurrency scam. This was done under the charity campaign ‘Save The Kids’ which is for underprivileged children around the world. The scam is referred to as a ‘pump and dump’ operation which is infamously known as the Ponzi scheme.
The influencers involved in the scam were all associated with FaZe. They promoted the digital currency to their followers and encouraged their fans to buy the crypto after which they would then dump at a higher price and cause the crypto currency’s price to fall considerably. The main victims of these manipulated transactions are mainly small investors which in this case were the FaZe fans.
The three other members accused are Teeqo, Nikan, and Jarvis. They have been suspended from the organisation until further investigations. The recent findings within the case which is related to the manipulation of the altcoin called ‘Save The Kids’ ($KIDS), has caused the FaZe Clan organization to kick out Kay.
Below is the notice put out by the organization informing the fans of their decision.
The scam was first reported by ‘OrdinaryGamers,’ a Canadian YouTuber, who released a video appealing for a federal investigation into the Faze Clan. Built on the Binance Smart Chain (BSC), the $KIDS cryptocurrency was introduced as a charity token. There was a video released in which Kay promised to share the wealth to the holders and charities involved.
The unregulated market of the currency and the lack of knowledge about it has resulted in many people losing their money to scammers. It is always advised to do proper market research before deciding to invest money into it.
Photo Credit: Dexerto.com
Donna Amo is a writer at Gutshot Magazine. She is a graduate from Sophia College of Women, Mumbai with a degree in English Literature. When this October born foodie is not writing content or poetry, she spends her time laughing at memes or watching series. Based out of Mizoram, she is drawn to all things nature and has a soft spot for puppies.
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