MLG Memecoin Scandal Sparks FaZe Clan CEO Resignation

Richard “Banks” Bengtson, CEO of FaZe Clan, has abruptly resigned following allegations of involvement in a controversial cryptocurrency project linked to influencer Adin Ross. The fallout centers on a failed memecoin, $MLG, which surged in value after being promoted by Bengtson and FaZe members in early 2025 before collapsing, sparking accusations of a coordinated “rug pull” [1]. Bengtson denied wrongdoing, calling the allegations “unfair” and politically motivated, while blaming Ross for the project’s collapse, citing a leaked group chat in which he accused Ross of exploiting the token for personal gain [2]. Ross, in turn, denied responsibility, describing the situation as “sad asf” and asserting the crash was not his doing [3]. The public feud and scrutiny over the crypto venture have forced Bengtson to step away from both FaZe Clan and internet engagement indefinitely, stating the fallout had “ruined [his] entire life” [4].

The controversy began when Bengtson and FaZe members endorsed $MLG, a memecoin that initially gained traction through aggressive influencer-driven hype. However, the token’s value plummeted shortly after, leading to accusations that insiders had manipulated the market. Bengtson claimed he invested heavily in the project and had not sold his own holdings, framing himself as a victim of misinformation and “farmed” content [5]. A leaked group chat revealed tensions between Bengtson and Ross, with the latter allegedly exploiting the coin’s momentum to exit his position, leaving Bengtson as “exit liquidity” [6]. Ross confirmed the message’s authenticity but reiterated his innocence, suggesting deeper unresolved issues within the FaZe community [7].

The incident has sparked broader scrutiny of meme cryptocurrencies, which rely on influencer marketing but lack regulatory safeguards. Analysts have long warned about the risks of such projects, though no specific forecasts were cited in the available sources [8]. For FaZe Clan, the resignation of its longtime CEO signals uncertainty for the esports organization, which now faces questions about its leadership stability. Bengtson’s exit underscores the reputational and legal vulnerabilities of high-profile figures endorsing unregulated digital assets. The gaming and entertainment sectors are increasingly under pressure to address the risks of influencer-driven crypto campaigns, as public trust in such ventures erodes.

FaZe Clan has remained silent on the allegations and Bengtson’s resignation, leaving fans to speculate about the organization’s future. The incident also highlights the fragile nature of internet fame, where personal brands can be swiftly dismantled by perceived ethical lapses. As meme coins continue to attract hype but deliver volatility, the case of $MLG serves as a cautionary tale for both creators and investors navigating the uncharted intersection of crypto and influencer culture.

Source:

[1]https://ambcrypto.com/faze-clan-ceo-quits-amid-mlg-crypto-scandal-sucks-my-entire-life-gets-ruined/

[2]https://www.timesnownews.com/world/us/us-buzz/why-did-faze-banks-quit-as-faze-clan-ceo-crypto-scam-and-adin-ross-controversy-explained-article-152366394

[3]https://www.dexerto.com/youtube/banks-steps-away-from-faze-amid-mlg-crypto-coin-controversy-3231282

[4]https://whereisthebuzz.com/faze-banks-steps-down-after-mlg-coin-implodes-points-to-adin-ross-as-bad-actor/

[5]https://iasmania.com/faze-banks-steps-down-amid-adin-ross-crypto-scam-accusations-full-story/

[6]https://www.complex.com/pop-culture/a/alex-ocho/banks-steps-down-as-faze-clan-ceo-amid-mlg-crypto-coin-scandal