Faze Clan, an esports and entertainment organization, has suspended three members of its team and completely removed a fourth following allegations of fraud tying into a cryptocurrency "charity token." Faze Clan has removed Kay permanently and suspended Jarvis, Nikan, and Teeqo indefinitely following YouTuber reports of the alleged scam. Faze Clan itself insists that it had "absolutely no involvement" with its players' activity related to the cryptocurrency controversy and "strongly condemns" them for their behavior.
The statement then goes further, directly addressing fans of Faze Clan. The statement reads, "The trust and respect of our fans has been, and always will be, our number one priority." In other words, Faze Clan is distancing itself from the situation as much it's able. No connection has been made between Faze Clan itself and the ongoing cryptocurrency controversy, but the organization is clearly going out of its way to ensure no such association is made. The suspensions, condemnation, and message to its fans are likely as close as the Faze Clan will ever get to directly addressing the issue.
As for what the issue is behind Faze Clan's statement, it's commonly referred to as a "pump-and-dump" scheme or a "rug pull" and has historically related to the manipulation of stock prices. Basically, an event is manufactured that leads to a sudden increase in the price of a stock, or in this case a cryptocurrency. The manipulators will have purchased their item much earlier and at a significantly lower price. Then, once the price increases following the manufactured event, they sell, leaving their victims with the costs.
In this specific example, Kay, Jarvis, Nikan, Teeqo, and several other influencers are accused of putting out a video for a cryptocurrency named Save the Kids. The premise of the token was to "redistribute wealth" to charity. Only, after the cryptocurrency coin launched, its value plummeted. Since cryptocurrency transfers are transparent, with a bit of investigation it was discovered that all of the Faze members had a quantity of the coin initially and sold a portion, if not all, of their coins relatively quickly.
The reason why Kay was was expelled from Faze Clan where the others were indefinitely suspended has to do with the severity of clarity of their intent. Kay was shown to do have allegedly done multiple rug pulls, selling coins quickly after advertising cryptocurrencies through their social media.
Further, there are large accusations that the entire Save the Kids project was intended to defraud investors from the start. A change was made before the coin went live allowing coin holders to sell more than 20% of their coins each minute, where the previous restriction was 24 hours. It isn't clear whether or not what happened with Save the Kids is legal or not, though the members of Faze Clan's involvement seems increasingly likely.