FaZe Banks Resigns After $200 M MLG Crash—Crypto Scam Allegations End FaZe CEO Era

In the flashy world of esports and online fame, where influencers hold sway like modern royalty, FaZe Banks has always stood out equal parts admired and controversial. As the co-founder and CEO of FaZe Clan, Richard “FaZe Banks” Bengston turned gaming clips and viral moments into a global empire. But as of July 29, 2025, that chapter has come to a dramatic close. Banks has stepped down following explosive claims linking him to a crypto scam involving the MLG meme coin a project that allegedly rug-pulled its investors, causing major losses and sending shockwaves through both the crypto and gaming communities. This isn’t just another resignation. It’s a cautionary tale about ambition, blurred ethics, and the fine line between hustle and hype. And it’s the kind of drama that’s spreading fast from Twitch streams to X leaving fans and followers asking the big question, who can you really trust in the crypto Wild West?

FaZe Banks, Adin Ross, and the MLG Coin Meltdown

FaZe Banks the bold, larger-than-life figure who helped turn FaZe Clan into an esports empire, complete with flashy sponsorships, merch drops, and a devoted fanbase suddenly steps down. The reason? A growing feud with fellow streamer Adin Ross over a meme coin gone horribly wrong. At the center of the storm is MLG, a crypto token pitched as lighthearted fun with moonshot potential. But instead of gains, investors were hit with a classic rug pull where the team allegedly drained the liquidity pool, tanked the price, and vanished, leaving holders with worthless bags. Adin Ross, once tight with Banks, turned public critic blasting the project and its backers in fiery streams and tweets. The crypto community exploded, accusing FaZe Banks of promoting the token despite knowing the risk or even worse, being directly involved in the scam. The damage? Reportedly massive. Streamer N3on came forward saying he lost over $15 million, and whispers in the space suggest total investor losses may stretch into the hundreds of millions. What began as a joke coin hyped during streams has now become a cautionary tale of misplaced trust and the thin line between influencer and instigator.

FaZe Banks Breaks Down 

FaZe Banks isn’t going down without a fight. In a string of emotional Instagram Stories, the former FaZe Clan CEO hit back at the accusations surrounding the MLG meme coin rug pull.

“I’ve never scammed anyone a day in my f—— life,” he said, clearly shaken. According to Banks, the entire scandal is part of a $50,000 smear campaign designed to ruin his name. He claimed the stress has been overwhelming, saying it’s “destroying my life inside and out.”

As the backlash grew louder, Banks made the dramatic decision to step down completely from FaZe Clan not just as CEO, but from the public eye altogether. This isn’t the first time FaZe has faced crypto controversy. Fans may recall the 2021 “Save the Kids” token fiasco, which led to member suspensions. But this time, it hits deeper Banks was the heart of FaZe’s comeback, especially after the GameSquare acquisition that brought FaZe under the same roof as Major League Gaming (MLG) the very acronym now tied to the scandal. What once seemed like an inside joke or nod to gaming culture in the MLG coin’s name now feels hauntingly ironic, casting a long shadow over FaZe’s legacy and the trust fans placed in its leaders.

FaZe Banks’ Crypto Fallout Hits Harder Than Expected

The irony isn’t lost on anyone. FaZe Clan once flying high after its SPAC merger and riding the wave of esports fame is now facing one of its darkest chapters. The latest crypto scandal involving the MLG meme coin could be the tipping point. Under FaZe Banks’ leadership, the org leaned heavily into web3, blending gaming culture with the blockchain boom. It felt like the future. But the MLG debacle highlights the darker side of that fusion: meme coins hyped on social media can explode overnight and disappear just as fast. Now, regulators are circling and fans are demanding answers.

The community is deeply divided. Some loyal fans still believe Banks is being unfairly blamed, calling it a smear job. Others are sharing old screenshots of him promoting the coin, calling for boycotts and greater transparency. As someone who’s watched the crypto world rise, crash, and mutate from Bitcoin booms to NFT flameouts this saga feels all too familiar. It’s not just about losing money. It’s about broken trust. And FaZe Banks’ fall might just be a symbol of how messy the line between ambition and accountability has become in crypto’s wild frontier.

What’s Next for FaZe Clan—and FaZe Banks?

Now that FaZe Banks has stepped down, FaZe Clan faces a critical crossroads. With GameSquare execs likely stepping in, the team will have to steer through the storm without its most iconic face. Whether FaZe Banks’ exit is just a breather or a final goodbye remains to be seen but one thing’s for sure: the esports world won’t be the same without him. In crypto, where one tweet can turn fans into millionaires or wipe them out, this saga feels like a modern myth in real time. No formal charges have been filed yet, but the whole industry is watching closely for legal fallout. FaZe Banks’ rise and fall isn’t just about gaming or crypto it’s a cautionary tale for everyone chasing moonshots. Because in the influencer-fueled world of meme coins and viral hype, today’s hero can become tomorrow’s headline. Share this if you’ve ever taken a risk on a dream because in crypto, the next plot twist is always just one click away.

FAQs

1. Who is FaZe Banks?
   FaZe Banks, real name Richard Bengston, is the co-founder and former CEO of FaZe Clan, known for building the esports organization into a major brand through gaming and influencer content.
2. Why did FaZe Banks resign?
   FaZe Banks resigned amid allegations of involvement in a crypto scam with the MLG meme coin, which experienced a rug pull causing investor losses, though he denies any scamming.
3. What is the MLG crypto scam allegation?
   The MLG meme coin allegedly rug-pulled, leading to significant losses estimated in the hundreds of millions, with FaZe Banks accused of promoting it before the crash.
4. How did Adin Ross contribute to the controversy?
   Adin Ross publicly accused those involved in the MLG coin of scamming, escalating the drama after prior collaborations with FaZe Banks on meme coin discussions.
5. What could happen to FaZe Clan after FaZe Banks’ resignation?
   The organization may face leadership changes under GameSquare, potential reputational harm, and impacts on partnerships due to the scandal’s fallout.