The cryptocurrency world is reeling from the shocking resignation of FaZe Clan CEO Richard “Banks” Bengtson, following a controversial MLG Memecoin scandal involving influencer Adin Ross. This explosive saga highlights the dangers of influencer-driven crypto projects and the fragile trust in digital assets.
What Sparked the MLG Memecoin Scandal?
The controversy began when Bengtson and FaZe Clan members aggressively promoted $MLG, a memecoin that saw rapid growth in early 2025. However, the token’s value collapsed shortly after, leading to accusations of a coordinated “rug pull.” Key events unfolded as follows:
- Initial hype driven by influencer endorsements
- Sudden price crash within weeks of launch
- Leaked group chats revealing internal conflicts
- Public feud between Bengtson and Ross
FaZe Clan’s Leadership Crisis
The resignation of CEO Richard Bengtson has thrown the esports organization into turmoil. Bengtson claimed he was a victim of misinformation, stating:
“This situation has ruined my entire life. I invested heavily and didn’t sell my holdings.”
Meanwhile, FaZe Clan remains silent, leaving fans questioning the organization’s future leadership and involvement in crypto ventures.
Adin Ross’s Role in the Crypto Controversy
The influencer at the center of the storm, Adin Ross, denied responsibility for the MLG Memecoin crash, calling the situation “sad asf.” However, leaked messages suggest:
| Accusation | Response |
|---|---|
| Ross allegedly exited his position early | Claims messages were taken out of context |
| Left Bengtson as “exit liquidity” | Suggests deeper issues in FaZe community |
The Dark Side of Influencer Crypto Campaigns
This scandal exposes critical issues in the cryptocurrency space:
- Lack of regulatory safeguards for meme coins
- Vulnerability of investors to influencer hype
- Reputation risks for celebrities and organizations
- Need for greater transparency in crypto promotions
What This Means for Crypto and Gaming Industries
The MLG Memecoin scandal serves as a cautionary tale about:
- The volatility of meme cryptocurrencies
- The risks of blending gaming and crypto ventures
- The fragile nature of internet fame
- Growing public skepticism toward influencer endorsements
As the dust settles, this incident may lead to tighter scrutiny of celebrity crypto promotions and serve as a wake-up call for both investors and influencers in the digital asset space.
Frequently Asked Questions
What was the MLG Memecoin?
MLG was a cryptocurrency promoted by FaZe Clan members and influencer Adin Ross that saw rapid growth before collapsing amid accusations of market manipulation.
Why did the FaZe Clan CEO resign?
Richard Bengtson resigned following allegations of involvement in the failed MLG Memecoin project and a public feud with Adin Ross about responsibility for the token’s collapse.
Was this a “rug pull” scam?
While accusations of a coordinated rug pull exist, no formal charges have been filed. The situation highlights the risks of unregulated meme coins.
How has Adin Ross responded?
Ross denied responsibility for the MLG crash, calling the situation “sad asf” and claiming leaked messages were taken out of context.
What does this mean for influencer crypto promotions?
The scandal may lead to greater scrutiny of celebrity crypto endorsements and more cautious investor behavior toward influencer-driven projects.
Is FaZe Clan in trouble after this scandal?
The organization faces questions about leadership stability and its involvement in cryptocurrency ventures, but its long-term impact remains to be seen.
