FaZe Clan Drops Kay, Suspends Three Others Amid Crypto Scandal

FaZe Clan has fired Kay and suspended three other members—Jarvis, Nikan and Teeqo—following their involvement in a cryptocurrency scheme.

In June, it was revealed that the pro gamers were promoting an altcoin called Save The Kids, with a portion of proceeds purportedly going to charity.

According to Kotaku, after their large fanbase snapped up large quantities of the cryptocurrency, its value plummeted—leading to huge investment losses and accusations that the stars had "dumped" their investments.

And on Thursday, a statement was subsequently released on FaZe Clan's Twitter account, which read: "We have made the decision to remove Kay from FaZe Clan, and have suspended Jarvis, Nikan and Teeqo until further notice.

"FaZe Clan had absolutely no involvement with our members' activity in the cryptocurrency space, and we strongly condemn their recent behaviour. The trust and respect of our fans has been, and will always be, our number one priority."

For his part, 25-year-old Kay—real name Frazier Khattri—took to Twitter last weekend to apologize for his involvement in the scheme, as he shared a lengthy thread giving his version of events.

"I want you all to know that I had no ill intent promoting any crypto alt coins," he wrote. "I honestly & naively thought we all had a chance to win which just isn't the case. I didn't vet any of this with my team at FaZe and I now know I should have.

"While I'm very passionate about the crypto space, it's extremely complicated & I still have a lot to learn & I caution everyone to look closely before investing.

"It was so irresponsible of me to speak publicly about any coins without knowing more & knowing now that they can do more harm than good."

"I'm really struggling with the fact that I let you all down & more importantly anyone whose trust I've lost," he concluded. "My fans mean the world to me and I wouldn't be where I am today without you."

In June, it was announced that Tom Barker, also known as FaZe Barker, had been fired from FaZe after allegations surfaced on the internet that he harassed women online and asked a minor for nude photographs.

Barker started uploading edits to his YouTube channel in 2011 before joining the FaZe gaming organization in 2013. His in-house editing skills helped grow the hugely successful brand in its early days.

Although he worked with Faze for several years, Barker, a freelance editor, was never an official member of FaZe or "talent."

Newsweek has contacted a representative for Frazier Khattri for comment.