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Richard “FaZe Banks” Bengtson has stepped down as CEO of FaZe Clan amid mounting accusations of scamming fans through a now-infamous meme cryptocurrency called MLG Coin. But in a fiery denial, Banks is rejecting all wrongdoing, pinning the blame squarely on Twitch streamer Adin Ross and insisting he’s the target of a smear campaign.

“I’ve never scammed anyone a day in my f**king life,” Banks wrote in an emotional post on X. “The entire narrative is unfair and part of the reason it exists is cause my ‘FaZe’ name is so easily farmed and manipulated.”

What Is MLG Coin?

MLG Coin, formally known as 360noscope420blazeit, launched in October 2024 as a meme cryptocurrency on the Solana blockchain. It was branded as the “culture coin of gaming,” marketed toward fans of online shooter culture and esports memes.

Backed heavily by high-profile internet figures including FaZe Banks and Adin Ross, the token’s hype exploded in early 2025. In a matter of five days in January, the coin’s market cap skyrocketed from $3 million to over $150 million, primarily due to aggressive endorsements from Banks and others.

However, like many meme coins before it, the bottom fell out. MLG Coin crashed spectacularly, wiping out millions in fan investments. Accusations of a “rug pull” a deliberate scheme to pump and dump the coin immediately lit up social media, with many targeting Banks as the primary culprit.

FaZe Banks vs Adin Ross: The Screenshot That Sparked a Firestorm

Tensions boiled over on July 28, when a screenshot began circulating from the MLG Official Main Chat. In it, Banks appears to accuse Adin Ross of being a “bad actor” and blames him for shifting the public narrative against him.

Banks claims Ross was upset after being mocked online for his involvement in MLG Coin, and that he retaliated by spinning the story to portray Banks as the scammer.

“The only bad actor in this entire thing is Adin. Point blank. Period,” Banks stated.

The screenshot alleges that Ross was used as “exit liquidity” a crypto term referring to when a prominent figure pumps a token, allowing earlier holders to cash out at peak prices while newcomers are left with worthless coins.

Adin Ross Confirms the Screenshot, But Denies the Blame

Adin Ross confirmed the authenticity of the screenshot in a post on X, but rejected any suggestion that he orchestrated or was complicit in a rug pull.

“The Banks screenshot is real. Shit sad asf. If you guys think that MLG being rugged was me I’m sorry to tell you it wasn’t,” Ross wrote.

“There’s a reason that entire house is silent, truth will come out eventually. I’m just more hurt on the fact someone I call my brother is behind my back.”

Ross and Banks had a long-standing friendship, having frequently co-streamed and invested together. Earlier this year, Ross claimed he owned 20% of FaZe Clan, and both were also public investors in Death Breath, a breath freshener start-up.

Banks Says He Lost Money, Not Made It

Attempting to clear his name, Banks took to Instagram to post a screenshot of a deleted tweet, which he claims proves he lost money on MLG Coin.

“Has to officially be the worst ‘scam’ of all time considering I lost 6-figures,” he wrote. Banks says he sold off his entire MLG coin portfolio at a net loss of $106,475.

In another post, he shared a DM from an unnamed source alleging a coordinated $40,000 to $50,000 smear campaign was being run against him on Twitter.

“Someone I know that runs Twitter campaigns is saying someone is going out of their way to pay pages… to place blame on you,” the message reads.

Fallout at FaZe Clan

The backlash has proven too toxic for FaZe Banks to weather. On Monday, he announced his resignation as CEO and revealed that he would be stepping away from both FaZe Clan and social media entirely.

“For the time being I’m gunna be stepping away not only from Faze, but all this internet sh*t,” Banks tweeted. “Sucks my entire life gets ruined over something I didn’t even do. The real ones know. I wish I could say I’ll be back, but I really don’t know if I will.”

His exit marks another chapter in FaZe Clan’s rocky recent history. Once considered a dominant force in gaming, the organization has faced growing scrutiny over its business decisions, declining relevance, and controversial NFT ventures.

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