Former FaZe member threatens legal action against YouTubers who exposed his crypto scheme

Former FaZe member threatens legal action against YouTubers who exposed his crypto scheme

A cease-and-desist has been filed against Coffeezilla's investigation into the murky cryptocurrency launch.


Former FaZe member threatens legal action against YouTubers who exposed his crypto scheme - image1
(Image credit: FaZe Clan)

Two ᴡᴇeks ʙᴀᴄᴋ, ꜰᴏʀᴍᴇr Faze ᴍᴇmʙᴇr Frazier "Kay" Khᴀᴛtri wᴀs booted ꜰʀᴏᴍ tʜᴇ competɪᴛive gamɪɴg clᴀɴ ᴀꜰᴛᴇʀ ʜᴇ ᴀɴd ᴛʜʀᴇᴇ otʜᴇrs ᴡᴇre ꜰᴏᴜɴᴅ ᴘᴜsʜɪɴg a sʜᴀᴅy "pump ᴀɴd dump" ᴄʀʏpᴛᴏcurrency scʜᴇᴍᴇ. Now, YouTuʙᴇrs ᴡʜᴏ ʜᴇlped ʙʀᴇᴀᴋ tʜᴇ stᴏʀy sᴀʏ Kay ɪs slammɪɴg tʜᴇm wɪᴛh ceᴀse ᴀɴd desɪst ɴᴏtɪᴄᴇs ᴛᴏ sᴛᴏᴘ tʜᴇ ɴᴇᴡs spʀᴇᴀᴅɪɴg ᴀɴy furtʜᴇr.

Kay, along with three now-suspended Faze members, was found to have helped promote a new "Save the Kids" crypto coin, whose sales would be given in-part to charity. Of course, shortly after launch, the value of the sale crashed—leaving buyers at a massive loss while promotors like Kay allegedly made bank.

Coffeezilla, one of the YouTubers who made videos exposing the immediate collapse of the Save The Kids launch Kay helped promote, wrote on Twitter yesterday that the former Faze member was threatening legal action if he didn't remove his videos on the matter—claiming they caused him to lose "millions in revenue".

BREAKING: @FrazierKay sent me a cease and desist letter yesterday for my SaveTheKids video. He says I caused him to lose "millions in revenue" and that if I don't delete my videos, he's going to sue me. WATCH 👇 https://t.co/EBkOZCZl3U pic.twitter.com/bB90t5cIHMJuly 14, 2021

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The C&D letter, viewable on Imgur (via Kotaku), accuses Coffeezilla of extortion for asking Kay to comment on his investigation. Admittedly, the quoted message does hold a somewhat threatening tone, with Coffeezilla supposedly writing: 

"Kay, I'm serious man. You've gotta start talking. We've found so much more on you and if you keep hiding behind these 2 min statements, it's never gonna work."

It also cites several false and defamatory statements from Coffeezilla regarding his suggestion that Kay "dumped all of his [Save the Kids] tokens immediately" and that he has a history of "dumping nearly every crypto project he's ever been involved in".

Kay's lawyers have demanded that Coffeezilla retract his statements and videos, else be hit with a lawsuit for the supposed damages Kay is seeking—a suit that, according  to Coffeezilla, may also affect other YouTubers who covered the crypto scheme.

All this time, Kay himself has been attempting to paint himself as a victim. In a video dated July 9, Kay begs viewers to "please, please do not believe what you’re hearing online," explaining that his team has discovered evidence that a third party had supposedly masterminded this scheme and manipulated several Faze members to do so. 

"We’ve uncovered significant evidence that a dishonest person abused his trust with me to scam everybody," Kay explains. "This person gained my trust and the trust of my friends while still encouraging us to be the public face of his scheme."

With Coffeezilla not showing any signs of backing down (having already used the C&D notice to post yet another YouTube video), there's a good chance this suit may indeed go to court. 

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