Richard “Banks” Bengtson, the CEO of FaZe Clan, has stepped down from his position following intense scrutiny over a cryptocurrency venture gone wrong. The gaming organization’s leader announced his indefinite departure from both the company and social media after facing mounting pressure related to the MLG memecoin controversy.
Bengtson took to X to defend himself against the allegations, maintaining his innocence while expressing frustration over what he perceives as unfair treatment. He suggested that the FaZe brand’s high profile made it an easy target for criticism, ultimately leading to damage that extends beyond just his reputation to those associated with him.
Banks has announced he will be stepping down as CEO of FaZe after getting exposed for scamming Adin Ross out of Millions and using Adin to advertise MEME coin MLG to his live streaming community. pic.twitter.com/z1NVFL1emq
— BagBoy (@BagBoyClpz) July 28, 2025
In his farewell message, Bengtson conveyed deep disappointment about the situation’s impact on his life and career. He left his return uncertain, stating he couldn’t promise when or if he would come back to the public eye. FaZe Clan has not yet issued any official statement regarding their CEO’s departure or addressed the surrounding controversy.
The MLG Memecoin Controversy Unfolds
The scandal traces back to early 2025 when Bengtson and several FaZe members promoted a cryptocurrency called MLG memecoin. The digital asset experienced a sharp price increase driven by promotional efforts from various high-profile influencers within the gaming and streaming community.
The celebration was short-lived as MLG’s value plummeted rapidly, leaving investors with significant losses. Community members quickly accused the promoters of executing a “rug pull” – a scheme where creators abandon a project after extracting value from investors. Many directed their anger specifically at Bengtson, alleging he had deliberately misled his audience for personal gain.
The controversy deepened on July 28th when private communications surfaced showing Bengtson pointing fingers at streaming personality Adin Ross. In the leaked messages, Bengtson suggested that Ross’s community had strategically sold their holdings after he invested, essentially using him as “exit liquidity” to cash out their positions.
Fallout Between Gaming Influencers
Ross acknowledged the leaked messages were genuine but firmly rejected any culpability in the token’s failure. He characterized the situation as unfortunate while refusing to shoulder blame for the investment losses. The public dispute between these two prominent figures only amplified community outrage and media attention.
This heated exchange between Bengtson and Ross served as the catalyst for the FaZe CEO’s decision to withdraw completely from public life. The organization he helped build now faces an uncertain path forward without one of its founding members and most recognizable faces.
As the gaming and crypto communities process this development, FaZe Clan’s silence on the matter has only fueled more speculation about potential internal turmoil and future leadership changes. The incident adds to a growing list of cryptocurrency-related controversies involving social media influencers and content creators.
Ripple Effects on Digital Asset Markets
This high-profile scandal involving major gaming influencers could further erode retail investor confidence in celebrity-endorsed tokens and memecoins. The negative sentiment surrounding this incident may contribute to increased regulatory scrutiny and investor wariness toward influencer-promoted cryptocurrency projects in the near term.
Leave a comment