Here's where things get dark. In 2021, several FaZe members promoted a cryptocurrency called "Save the Kids" to their young audiences. The pitch? Buy this token, and proceeds go to charity. Sounds wholesome, right?

Except it was a classic pump-and-dump scheme. FaZe members allegedly bought in early, hyped it to their millions of followers (many of them literal children), then sold their holdings once the price spiked, leaving regular investors—including kids who scraped together money—holding worthless tokens. The "charity" angle was essentially a lie.

Why this matters for parents: This wasn't just financial fraud. This was influencers leveraging parasocial relationships with minors to scam them. Your kid doesn't just watch these creators—they trust them. When FaZe Kay (one of the members involved) told his audience this was a good investment, kids believed him because they felt like they knew him.

The SEC (Securities and Exchange Commission) has been investigating. Several members were kicked out of FaZe, but the damage—both financial and to trust—was done. Learn more about crypto scams targeting kids.

Fast forward to 2024-2025, and FaZe Clan is in full crisis mode:

The CEO got fired: Richard "FaZe Banks" Bengston, one of the co-founders who became CEO, was just ousted by the board. This is the guy who was supposed to stabilize the organization after it went public (yes, FaZe Clan is a publicly traded company—more on that disaster in a second).

Mass exodus of talent: Major creators are leaving. FaZe Adapt, FaZe Temperrr (another co-founder), and others have either left or are publicly feuding with leadership. When your entire business model is built on personalities, and those personalities are bailing, you've got a problem.

Stock price collapse: FaZe went public in 2022 through a SPAC (Special Purpose Acquisition Company) merger. The stock debuted around $10-12 per share. As of early 2025, it's trading under $1. The company is facing delisting from NASDAQ. They've done multiple reverse stock splits to stay afloat. Translation: investors lost almost everything.

Financial mismanagement: Reports of lavish spending, failed business ventures, and an inability to actually monetize their massive audience. They burned through cash on luxury offices and celebrity partnerships while failing to build sustainable revenue.

Your kids follow FaZe for a few reasons:

The problem? This influence was weaponized for financial scams, and the organization itself has proven to be deeply dysfunctional. The "success" your kid sees is increasingly revealed to be smoke and mirrors.

Your kid's heroes might be grifters: Not all FaZe members were involved in the crypto scam, but the organization's culture clearly enabled it. Have conversations about who your kids follow and why. Here's how to talk about influencer culture.

Financial literacy is critical: If your teen is interested in investing or crypto because of influencers, this is a teaching moment. The Save the Kids scandal is a perfect case study in how scams work. Check out resources for teaching kids about money and investing.

Parasocial relationships are real: Your kid might be genuinely upset about FaZe's implosion. They might feel betrayed. That's valid—they were betrayed. Use this as an opportunity to discuss the difference between actually knowing someone and feeling like you know them through screens.

Content moderation matters: If your younger kids (under 13) are watching FaZe content, know that it's often unfiltered—profanity, adult themes, and now, ethical disasters. FaZe isn't creating content for children, even though children are watching. Consider whether this is age-appropriate for your family.

The "get rich gaming" myth: FaZe sold a dream that you can get rich playing video games. While that's technically possible, it's about as likely as making it to the NBA. The real money in gaming comes from business savvy, brand building, and often, exploiting your audience. Talk about realistic career paths if your kid is serious about gaming—here are alternatives to the influencer pipeline.

Ages 8-12: FaZe content is generally too mature. If they're watching, redirect to more age-appropriate gaming content like DanTDM, LDShadowLady, or Grian. Use parental controls on YouTube to limit access.

Ages 13-15: This is prime FaZe demographic. They're old enough to watch but need context. Watch some content together. Discuss the crypto scandal. Ask: "Would you trust financial advice from someone whose job is to entertain you?"

Ages 16-18: They can handle the content but benefit from critical media literacy. Discuss the business side—how did FaZe go from a YouTube group to a failed public company? What does that say about the sustainability of influencer culture? This is also a good age to explore ethical gaming content creators.

Don't dismiss their feelings: "It's just YouTube drama" minimizes something that might genuinely matter to your kid. Start with curiosity: "I saw FaZe Clan is going through some stuff. What's your take on it?"

Connect to real-world consequences: The people who lost money on Save the Kids were real. Some were kids. Some were adults with families. Scams have victims.

Discuss media literacy: Who benefits when your kid clicks, watches, and buys? What's the business model? When someone with millions of followers promotes something, ask: "Are they getting paid? Do they actually use this? Would they recommend it if they weren't making money?"

Explore alternatives: If your kid is into competitive gaming, are there healthier communities to engage with? Alternatives to mainstream gaming influencers exist—they're just less flashy.

FaZe Clan's implosion is a cautionary tale about influencer culture, parasocial relationships, and the dangers of unchecked capitalism in youth-targeted spaces. Your kids are watching this unfold in real-time, and whether they realize it or not, they're learning lessons about trust, money, and who to look up to.

This is a moment to engage, not to lecture. FaZe's collapse is actually a gift—it's a real-world example of how the glittering influencer lifestyle can be built on exploitation and poor decisions. Use it.

And if your kid is genuinely interested in gaming, esports, or content creation? Great. Help them find the ethical path. There are creators doing it right—check out this guide to positive gaming role models. The FaZe era might be ending, and honestly? That might be for the best.

The FaZe saga isn't over, but your kid's relationship with influencer culture doesn't have to follow the same trajectory. You've got this.