E-sports collective FaZe Clan denies that it participated in the alleged pump-and-dump of Save the Kids coin, drops and suspends players who promoted the coin (Andrew Hayward/Decrypt)

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FaZe Clan, one of the most popular esports organizations competing across multiple games, came under fire lately for allegations that its players participated in a pump-and-dump scheme for a purported charity coin. Now, the team has responded by punishing the players, with one released by the organization.

Late on Thursday, the team tweeted that it had “absolutely no involvement with our members’ activity in the cryptocurrency space” and that it “strongly condemn[s] their behavior.” FaZe has dropped longtime member Kay from the organization as a result of the allegations, and indefinitely suspended players Jarvis, Nikan, and Teeqo.

The players had recently promoted Save the Kids (KIDS), a Binance Smart Chain-based cryptocurrency project billed as a charity initiative. The coin’s website, which is now offline, claimed that the project would donate 1% of each transaction fee (which is 3% of the transacted amount) to the Binance Charity wallet to benefit a kid-centric foundation, while influencers claimed that all investors would benefit from growing use of the coin.

After the project went live in early June, the coin’s price dropped nearly 90% in just three days, suggesting that developers used the gaming influencers’ considerable reach to boost the value of the coin before selling and pulling the rug out from investors—a classic pump and dump scheme.

David

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