Richard “Banks” Bengtson has resigned as Chief Executive Officer of FaZe Clan following a dispute over the failed cryptocurrency project MLG Coin, a meme token he and other FaZe members promoted earlier this year.
MLG Coin — also known as 360noscope420blazeit — launched in October 2024 on the Solana blockchain and was heavily promoted by FaZe Clan figures and streamer Adin Ross. Its market value reportedly jumped from around $3m to $150m within five days of heightened promotion. Shortly afterwards, the token’s value collapsed, prompting accusations of a “rug pull” — a form of market manipulation in which early promoters allegedly sell off holdings for profit at the expense of later investors.
Social media allegations claimed Banks profited from the scheme. A screenshot circulated online appeared to show Banks placing blame on Ross, describing him as the “only bad actor” in the situation. Banks has denied any wrongdoing, stating he invested heavily in the coin, never sold during its peak, and ultimately lost over $100,000. He also said the controversy had taken a toll on his mental health and relationships, prompting his decision to step away from both FaZe Clan and social media.
Ross has confirmed the screenshot’s authenticity but rejected responsibility for the collapse of the coin, saying he was “hurt” that someone he considered a friend would place blame on him. Both Banks and Ross had indicated they planned to address the matter together in a livestream, though no date has been confirmed.
The MLG Coin episode adds to wider concerns over celebrity-backed cryptocurrency projects. Research published in the Journal of Financial Economics in 2023 found that 70% of such tokens underperformed, often due to speculative hype rather than long-term utility. The controversy has also sparked renewed debate over due diligence, ethical responsibility, and investor risk in the gaming and influencer sectors’ involvement with blockchain assets.
FaZe Clan has yet to announce who will assume the CEO role in the interim, and Banks has not stated whether or when he might return. Recently, The Esports Radar published an interview with FaZe’s President Erik Anderson on how the organisation balances content creation and competitive performance.
