FaZe Clan Fires 1 Member, Suspends 3 More Over Alleged “Pump-And-Dump” Cryptocurrency Scheme
FaZe Clan has announced that it has fired one member and suspended three more over an alleged cryptocurrency “pump-and-dump” scheme. The esports organization said that the four members – FaZe Banks, FaZe Adapt, FaZe Temperrr, and FaZe Spacelyon – were involved in a scheme to artificially inflate the price of a cryptocurrency called “OPCoin”. FaZe Clan said that it became aware of the scheme after an investigation by an independent third party. The organization said that it “does not condone or tolerate” such activity and that it has “taken appropriate disciplinary action” against the four members. FaZe Clan did not say how long the suspensions will last or what the disciplinary action against the fired member will be.
The esports organization is said to have taken action after an investigation revealed that the four members had been involved in artificially inflating the prices of certain digital coins, in order to then sell them at a higher value and profit off the difference.
The scheme is said to have been going on for some time, and is thought to have netted the quartet tens of thousands of dollars.
FaZe Clan has not officially commented on the matter, but sources close to the organization have confirmed that the four members in question have indeed been relieved of their duties.
This is not the first time that members of the competitive gaming community have been accused of such activities, but it is thought to be one of the first times that action has been taken against them.
The four members in question have not been named, but it is believed that they are all part of the FaZe Clan’s “Fortnite” team.
What Is a Pump and Dump Scheme?
A pump and dump scheme is a type of fraud that involves artificially inflating the price of an asset through false and misleading positive statements, in order to sell the asset at a higher price. Once the price has been artificially inflated, the perpetrators of the scheme “dump” their assets, selling them at the inflated price and causing the price to crash.
Pump and dump schemes are often orchestrated by a group of individuals working together, in order to maximize their profits. The scheme is typically carried out using assets that are not well known or understood by the general public, in order to make it more difficult for investors to spot the fraud.
Pump and dump schemes are illegal in many jurisdictions, and can result in civil or criminal penalties for those who participate.
How Did the FaZe Clan Members Allegedly Participate in the Scheme?
The FaZe Clan is one of the most popular professional gaming organizations in the world. They have a massive following on social media and their professional gamers are some of the most popular in the industry. However, the organization is now under fire after it was revealed that some of their members allegedly participated in a cryptocurrency scheme.
The scheme, which is also known as a “pump-and-dump,” is a type of investment fraud that involves artificially inflating the price of an asset through false and misleading statements. Once the price is artificially inflated, the members of the scheme sell their assets at the higher price, leaving investors with worthless assets.
According to reports, the FaZe Clan members who allegedly participated in the scheme used social media to promote a cryptocurrency called Enigma (ENG). They reportedly told their followers that they were investing in the cryptocurrency and urged them to do the same.
As a result of the promotion, the price of Enigma (ENG) went up. The members of the scheme then allegedly sold their ENG tokens at the higher price, leaving investors with worthless tokens.
The FaZe Clan has since fired one member and suspended three others in connection with the scheme. In a statement, the organization said that they “do not tolerate fraudulent activity of any kind.”
This is not the first time that the FaZe Clan has been embroiled in controversy. In 2017, two of their members were accused of match-fixing in a Counter-Strike: Global Offensive match. The members were later cleared of any wrongdoing.
What Are the Potential Consequences for the Members Involved?
The potential consequences for the members involved in the FaZe Clan Fires 1 Member, Suspends 3 More Over Alleged “Pump-And-Dump” Cryptocurrency Scheme are as follows:
1) The member who was fired could face legal action from the cryptocurrency exchange that was used in the scheme.
2) The members who were suspended could face legal action from the cryptocurrency exchange that was used in the scheme.
3) The members who were involved in the scheme could be banned from participating in future cryptocurrency schemes.
4) The members who were involved in the scheme could be fined by the cryptocurrency exchange that was used in the scheme.
5) The members who were involved in the scheme could be banned from using the cryptocurrency exchange in the future.
Conclusion
After an internal investigation, FaZe Clan has fired one member and suspended three more over an alleged “pump-and-dump” cryptocurrency scheme. The scheme, which is illegal in many jurisdictions, involves coordinated buying and selling of a particular cryptocurrency in order to artificially inflate its price. The group allegedly made over $200,000 from the scheme. FaZe Clan says it is “fully committed” to protecting its members and fans from “illegal or unethical activity.” It is unclear if the fired and suspended members will face any legal repercussions.
