FaZe crypto drama deepens as leaked chats expose backdoor dealings

Leaked messages show FaZe Banks pressuring the MLG team into giving him preferential treatment.

The FaZe Banks crypto pump-and-dump controversy is once again heating up. On Wednesday, July 31, leaked texts appeared that appear to show Ricky Bengston, also known as FaZe Banks, pressured the MLG team into giving him preferential treatment.

Messages show FaZe Banks asking to buy large amounts of tokens over the counter, alongside influencer Aydin Ross and another investor. He also explicitly stated that he was not interested in buying at the current market price, instead asking for a special discount. After the founder refused, he threatened to stop promoting the token.

The texts also revealed that FaZe held 0.6% of the token supply and wanted to accumulate at least 1%. This conflicts with his earlier public statements that MLG was a passion project and that he did not receive any compensation from the team.

FaZe Banks’ apparent intention was to buy large amounts of tokens without moving the market, all while continuing to promote the token to his audience. This strategy aligns with a classic “pump-and-dump” scheme, suggesting that FaZe Banks intended to pull the rug on his followers.

MLG token dump costs users up to $150m

The controversy stems from FaZe Banks’ promotion of 360noscope420blazeit (MLG) memecoin in October 2024. His tweets sent the token skyrocketing to more than $150 million in market cap before collapsing to just $10 million.

MLG memecoin, based on gaming culture, partnered with influencers such as FaZe Banks and Aydin Ross, both popular among gamers. The memecoin appealed specifically to their audience, who saw it as a nod to gaming nostalgia. On July 28, following public scrutiny over his role in the MLG crash, FaZe Banks stepped down as CEO of FaZe Clan gaming.