Earlier in July, we reported on members of the esports organization, Faze Clan, being involved in cryptocurrency fraud. The ‘pump and dump’ scam resulted in the organization suspending Jarvis, Nikan, and Teeqo, and permanently removing Frazier “Kay” Khattri. Now, over a month later, Kay has come out and given his version of the story.
A ‘pump and dump’ or a ‘rug pull’ involves creating an event which will suddenly increase the value of a stock or cryptocurrency. The manufacturers, who would have purchased the cryptocurrency earlier at a lower cost, then sell while the price is high. While the other three were suspended, Kay was permanently removed as he was involved in a number of such schemes previously. There have also been accusations stating that the Save the Kids project was started as a way to defraud investors in the first place.
Later on in July, Kay also attempted to sue Coffeezilla, the YouTuber that exposed the scam. Coffeezilla is known to expose such scams, and was the primary reason behind Kay and his accomplices getting caught. Kay claimed that the YouTuber caused him "millions" in damage, which has caused Kay's lawyers to demand that the YouTuber retract his statements and videos.
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However, in a video uploaded yesterday to his official YouTube channel (thanks Kotaku), Kay gave his version of what happened. In the hour-long video, Kay claimed that it was all orchestrated by his partner, Sam Pepper. His alleged lack of knowledge about cryptocurrency apparently allowed him and the victims of the scam to be taken advantage of.
“I’ve been having to bite my tongue for this whole month while we collect all the evidence,” said Kay in the video. “I would never in a million years, on purpose or intentionally, try to harm, take advantage, or scam anybody. I am no crypto mastermind, alright? I’m literally a content creator, and I trusted the wrong people. And it’s led to this disaster that I’m in.”
He later went on to say that he wants to make things right by paying back as many people as he could. “Even though I was tricked by somebody who took advantage of me and my fan base, I’m committed to paying as many people back as possible out of my own pocket. I feel awful that this ever happened and I just want to do everything that I can to help fix it.”
He also showed screenshots of alleged transactions made to Binance Lunch for Children, a crypto-based charity that provides meals for school children in Uganda. This was the primary reason to start up the SaveTheKids cryptocurrency in the first place.