On July 29, FaZe Banks resigned as the CEO of FaZe Clan following an intense backlash on the launch of meme coin MLG Crypto.
The 33-year-old entrepreneur stepped down on accusations of pulling a crypto scam while promoting the meme coin.
In his message on the social media platform X, FaZe Banks denied any wrongdoing amid the ongoing crypto controversy. His resignation follows months of controversy and allegations tied to a meme coin promoted by Banks and other FaZe members earlier in 2025.
The meme coin, MLG Crypto, saw a sharp price surge followed by a steep crash, resulting in significant losses for investors.
The collapse occurred after initial promotional activity by FaZe members. Banks has stated that he invested heavily in the project and never sold his tokens.
Related article: U.S. DOJ Recovers $40K in Crypto Linked to Trump-Vance Inaugural Scam
As of today, the MLG Crypto price rallied all the way to $0.022. However, it has seen a significant pullback and is trading at $0.012 at press time.
Internal Rift Between Meme Coin MLG Crypto Creators
Leaked group chat messages dated July 28 reveal internal tensions between FaZe co-founder Banks and content creator Adin Ross over the failed mem coin MLG crypto.
FaZe Banks blames Adin Ross for the failed and rugged launch of his MLG coin.
“Adin Ross fucked this up, this community dumped on him buying
Used him as exit liquidity
His ego got hurt, blamed Frank (…) Adin despises Frank and spins and drives a narative about Frank selling.” pic.twitter.com/HePw3yONPn— Adin Reports (@AdinReports) July 28, 2025
In the messages, Banks blamed Ross for the token’s collapse, accusing him of being “used as exit liquidity” by the community. He also stated Ross’s ego was damaged in the process.
Banks also alleged that Ross “despises Frank” and spreads narratives about token dumping. He maintained that he grew the project organically from $3 million to $200 million and denied selling any of his holdings.
The exchanges highlight growing friction between the two over accountability for the project’s failure.
Ross confirmed the authenticity of the leaked messages but denied any wrongdoing. Posting from an alternate account, he said that he had no role in the crypto rug pull. Unfortunately, crypto scams have been common in 2025, from the MELANIA coin collapse to the Trump-Vance phishing case in July.
Before resigning, Banks announced plans for a joint livestream with Ross to address the controversy. FaZe Banks noted that the situation had been “wildly miscommunicated” and had severely impacted his mental health.
He also expressed disappointment that the fallout had strained his relationship with Ross.
Impact on the FaZe Clan Members
Banks voiced concern over the impact of the MLG token controversy on other FaZe Clan members, stating it was “unacceptable” that his colleagues were being affected by the allegations. This, he said, played a major role in his decision to resign from his leadership position.
In his announcement, Banks said he would be stepping away not only from FaZe but also from “all this internet stuff,” describing the situation as one that was “destroying [his] life inside and out.” He acknowledged uncertainty about whether he would return to the online space.
Posting further clarification via Instagram Stories, Banks dismissed the allegations as attempts at “farming” engagement.
