FaZe CEO Ricky Banks Resigns Amid MLG Meme Coin Scandal

The gaming and crypto world collided this week as FaZe Clan CEO Ricky Banks resigned following his involvement in the controversial $MLG meme coin project. The coin, developed in collaboration with popular streamer Adin Ross, was promoted heavily to fans before its value plummeted, sparking backlash and accusations of a pump‑and‑dump scheme.

A 2023 study in the Journal of Financial Economics revealed that 70% of celebrity‑endorsed cryptocurrencies underperform due to hype and lack of utility. The MLG scandal adds to the growing list of failed celebrity crypto projects, raising questions about accountability, due diligence, and the risks of meme coin speculation in the evolving blockchain space.

Bitcoin Surges Past $115K Amid Institutional Adoption

While the scandal unfolded, Bitcoin reached $115,150 on July 28, 2025, signaling renewed strength in the broader crypto market. Analysts attribute this surge to increased institutional adoption, including the Nasdaq listing of Bitcoin Standard Treasury Company, which legitimizes Bitcoin as a mainstream asset.

Unlike volatile meme coins like $MLG, Bitcoin continues to solidify its reputation as a secure, decentralized store of value. This price milestone also reflects global investor confidence, as Bitcoin’s resilience contrasts sharply with the collapse of hype‑driven tokens.

Impact of U.S. Crypto Regulation on Meme Coins

This development comes during U.S. “crypto week”, where new regulations and investor protection policies are under discussion. Stricter rules are expected to curb celebrity‑driven scams and speculative tokens, paving the way for sustainable projects to thrive.

According to CoinMarketCap data, the altcoin market cap has risen by 5%, suggesting that investors are rotating out of risky meme coins into legitimate altcoins and DeFi projects. For coins like $MLG, surviving in this new regulatory era will require innovation, transparency, and real utility.