In the wake of several FaZe Clan members promoting the fake Save the Kids cryptocurrency, two attorneys have broken down whether their involvement will have legal implications.
As news continues to leak out about the Save the Kids crypto scam that saw FaZe Clan drop Kay and suspend Jarvis, Nikan & Teeqo, the internet has been quick to criticize the esports behemoth for their carelessness.
Despite this, it appears that those involved could suffer severe legal implications and, in extreme cases, possible jail time for their misgivings.
Does the crypto scam have legal implications?
Just as Twitch sensation Pokimane pointed out, the scam will likely see legal ramifications for those involved. In a recent interview with The Esports Observer, attorneys Cory Kirchert and Adriaen Morse Jr. of D.C.-based law firm Arnall Golden Gregory have broken down the consequences that this decision could have.
Noting that all signs point to “charity fraud,” especially considering the similarities between the Save the Kids logo and the emblem of global charity, Save the Children, Kirchert states “to me, it looks like this was probably a charity fraud from the get-go.”
Two different punishment pathways could await the FaZe Clan members involved. If they were the ones who created the currency, they would be committing Charity Fraud. This could see those implicated hit with a $1 million fine, alongside a whopping 30 years behind bars. If money laundering was added as a charge, that adds 20 years and a minimum of $500,000.
If they truly were unaware of the charity’s bogus nature, then both Kirchert and Morse project that the FTC (Federal Trade Commission) and SEC (Securities and Exchange Commision) will likely still perform some type of investigation.
While Kirchert and Morse admit that cryptocurrency isn’t their direct area of expertise (both work in Litigation, Securities Enforcement, and Government Investigations,) it appears that the consequences of this incident will likely lead to some sort of legal action.
As influencers continue to weigh in on the situation, as well as Banks’ possible involvement, we’ll need to wait and see what the future holds.