The cryptocurrency community went aghast after Ricky Banks, CEO of FaZe, stepped down amid the MLG scandal. The meme coin was highly promoted in early 2025 by Banks along with streamer Adin Ross and other FaZe members. Though the coin experienced a rapid surge in value, fueled by influencer hype and a rush of retail investors, the spike was short-lived. The value of MLG plummeted after a wave of sell-offs, leaving many investors with significant losses. Allegations of a coordinated “rug pull” soon surfaced, with fans accusing Banks and his associates of misleading them and orchestrating an exit scam.
Blame Game and Leaked Messages
As backlash intensified, a leaked group chat message appeared online, showing Banks blaming Adin Ross for the collapse of the token. He claimed Ross was used by traders as “exit liquidity,” and accused him of creating a false narrative that shifted the blame toward others, including Banks himself.
According to Banks, he had never sold any of his MLG holdings and had invested heavily into the project to grow its market cap organically. Despite this defense, the online community continued to associate him with the token’s failure. In his X post, Banks stated that he had never scammed anyone and that the entire narrative has been unfair. He also stressed on how the controversy had ruined his life and all that he had worked up to.
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Following the controversy, Banks announced he would go live on a joint stream with Ross to address the controversy. However, within hours, he changed course. Citing emotional exhaustion and growing frustration with the online narrative, Banks declared he was stepping down from his role as FaZe Clan CEO and withdrawing from social media altogether. He described the allegations as baseless and claimed that his reputation was being exploited because of his association with the FaZe brand. The situation, he said, had begun to take a toll on both his mental health and personal life.
Ross Responds and Tensions Escalate
On the other hand, Adin Ross confirmed the authenticity of the leaked messages but denied being responsible for the downfall of MLG. He emphasized that the truth would be exposed and expressed disappointment in how the situation had damaged his relationship with Banks.
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Meanwhile, this back-and-forth spat between the two influencers added further drama to an already chaotic situation and left crypto market participants divided over who to believe. This also highlights the perils that could arise connecting influencer culture and speculative crypto investing. With lack of regulation and accountability in projects, it often opens the door for reputational ruin and financial loss.
A Disrupted Legacy
With Banks’ departure, a dramatic turning point for FaZe Clan is witnessed, especially considering his role in the organization’s 2024 reboot, during which most legacy creators were removed in an attempt to steer the group in a new direction.
Now, just months later, FaZe finds itself leaderless once again and mired in controversy. Whether Banks returns to the spotlight remains uncertain, but the fallout from MLG has already left a lasting mark.Notably, following Banks’ announcement, the price of the MLG token has shot up by more than 60% in the past 24 hours, as per the data provided by CoinMarketCap. The meme token trades at $0.01382, 38% down from its all-time high seen on Monday.
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