FaZe Clan kicks Kay, suspends Jarvis and Teeqo over crypto scam

FaZe Clan has kicked one member of its organization and suspended three others over an alleged cryptocurrency scam.

The organization announced that Jarvis “Jarvis” Khattri, Nikan “Nikan” Nadim, and Jakob “Teeqo” Swarden have been suspended indefinitely. Frazier “Kay” Khattri was cut entirely. This comes after the four content creators purportedly took part in an egregious pump-and-dump and fake charity scam designed to trick their fans.

In a statement released to FaZe Clan’s Twitter account, the organization condemned their behavior and stated it had no part in its players’ dealings in cryptocurrency.

Jarvis, Nikan, and Teeqo have not put out a statement on the matter to this point. Kay publicly addressed the matter on June 27 on Twitter, saying he was misled and apologizing to fans he “let down.”

Jay has history of crypto scams with FaZe Clan’s Banks

The release of Kay and suspensions of Jarvis, Nikan, and Teeqo comes after the four promoted a “Save the Kids” token. The four FaZe personalities, alongside a number of other social media personalities, stepped forward and stated they were “brand ambassadors” for the cryptocurrency. 

After an unknown number of fans invested in cryptocurrency, the influencers allegedly sold all their holdings in Save the Kids and profited off the difference. Most of the alleged have deleted any trace of Save the Kids from their social media.

If true, this would be a textbook pump-and-dump scheme and would may be illegal.

This FaZe Clan situation follows a very similar controversy involving FaZe COO Richard “Banks” Bengston that was covered by Mashable a few days earlier. In May, Bengston stated he was running a $10,000 giveaway for a cryptocurrency named BankSocial. The price of BankSocial spiked after Bengston’s promotion, and has since lost 90% of its value. 

After BankSocial declined, Bengston deleted any mention of it from his Twitter. According to Mashable, a member of BankSocial’s staff later acknowledged working with Bengston to “pump” the cryptocurrency. Kay also helped Bengston in promoting BankSocial.

What is a pump and dump?

A pump and dump is a type of financial scam where someone with a financial stake in a floundering or failing enterprise encourages others to invest in the enterprise in the hopes that their own stake becomes more valuable. Once the price increases, they cash out at the likely expense of those who bought in at a higher price.

Pump and dump schemes have existed for centuries, but have gained new life in recent years through cryptocurrencies.

How long are Teeqo, Jarvis, and Nikan suspended for?

FaZe Clan’s suspension of Jarvis, Teeqo, and Nikan is indefinite. It is unclear how long they will be removed from the team and what this may entail. The fact that they were not released while Kay was suggests that FaZe Clan intends to reactivate them at some point.