Could the owner of FaZe Clan be scamming their young fans?
What happens when high stakes gaming and cryptocurrency come together? Apparently, a recipe for scamming impressionable young fans. FaZe Clan is one of the largest esports organizations around, and an owner of the team may be responsible for a cryptocurrency scam worth hundreds of thousands of dollars.
As cryptocurrency becomes more accessible for the general population, people need to start being extra careful about who they take investment advice from. Frazier “Kay” Khattri was an owner of FaZe Clan who used his platform on YouTube to advise his young fans on how to invest their money into various cryptocurrencies. Much of Khattri’s advice was allegedly designed for his own “pump and dump” schemes.
Khattri was removed from FaZe Clan on July 2nd, after the team discovered his alleged involvement in numerous crypto scandals. On the 10th of July, Khattri released a statement denying all of the allegations about him, and now he’s pushing back on other online personalities who’ve begun leaking information on his involvement with crypto scams. We’ve got all the latest details for you right here.
What’s a FaZe Clan?
If you aren’t big on esports, you may have missed FaZe Clan. The group is one of the biggest esports organizations in the world, and they have competitive teams for games like Counter Strike: Global Offensive. The group puts together E-sport events and streams games for fans to watch & enjoy. Over the past ten years, the group has grown into a massive force in the world of esports.
Many of FaZe Clan’s biggest fans are kids, just like FaZe was when they started their organization back in 2010. Because of the age of their primary audience, FaZe mostly sticks to producing content that revolves around games & gaming, though its individual members, who attract fan bases of their own, sometimes produce videos that go into other content areas. After the latest scandals, that might begin to change.
Frazier “Kay” Khattri was a FaZe Clan owner until the team decided to remove him on July 2nd. The removal came after reports that Khattri was involved in “pump and dump” cryptocurrency schemes. Khattri allegedly pushed his young fans to put their money into unreliable cryptocurrencies. His large fan base would push the price of the currency up, allowing Khattri to sell big.
After Khattri made his cash, the price of the currency would begin to fall because of the lack of real support from major investors. Khattri’s fans would be left in the dust while the gamer was able to make hundreds of thousands on various sales. Allegedly, Khattri engaged in numerous versions of the same scam, profiting off his naive fans who simply followed the advice of a beloved streamer.
Various YouTubers worked to reveal Frazier Khattri’s alleged involvement with different crypto scams. One of the biggest sources of information was Coffeezilla. FaZe Clan’s decision to remove Khattri as a team owner was largely influenced by information reported by Coffeezilla. Now, it seems that Khattri, who denies the allegations against him, has sent a cease & desist order to Coffeezilla.
Khattri has threatened legal action against Coffeezilla if YouTube won’t take down his videos and stop telling people about Khattri’s involvement in crypto scams. Instead of complying with the legal notice, Coffeezilla made a video about receiving the cease & desist letter from Khattri and went on to expose Khattri’s involvement in another scam that earned him roughly $100,000.
Khattri will almost certainly retaliate after Coffeezilla’s most recent reporting, but how the legal battle will play out is anyone’s guess. Coffeezilla claims to have much more information about Khattri’s involvement in scams, and if more information comes to light, Khattri could face legal trouble of his own. Only time will tell.
Were you shocked by the allegations against Frazier Khattri? Does this change your relationship to FaZe Clan, or will you keep watching the team? Tell us what you think in the comments.