FaZe Clan is pulling out of crypto. The esports organization, known for its Call of Duty and Counter-Strike rosters, is ending its blockchain-related activities as part of a strategic pivot to stabilize its reputation and refocus on core esports. The move comes after the so-called karrigan era — a period named after the Danish in-game leader Helvijs 'karrigan' Saukants — during which FaZe heavily dabbled in crypto sponsorships and token launches.
Why the retreat now
The crypto retreat isn't sudden, but it is decisive. FaZe's brand took hits over the past year as several crypto partners faced regulatory scrutiny or market downturns. The organization's leadership decided that the reputational risk outweighed the revenue. Instead of chasing Web3 deals, FaZe is returning to what built its fanbase: competitive gaming, content creation, and merchandise. The shift is described internally as a strategic pivot, not a fire sale.
The karrigan era and its aftermath
Karrigan, who led FaZe's Counter-Strike team to multiple trophies, became synonymous with the org's aggressive expansion into crypto. Under his tenure, FaZe signed partnerships with blockchain platforms and launched its own token. But as the crypto market cooled and regulators tightened, those deals became liabilities. The karrigan era ended earlier this year, and the new leadership is cleaning house. Crypto is the first major casualty.
What this means for FaZe's bottom line
Exiting crypto means losing a revenue stream, but FaZe is betting that a cleaner brand will attract more traditional sponsors. The organization has already inked deals with energy drink and apparel companies — the kind of partners that stayed away during the crypto push. The timing isn't great for the broader esports industry, which is still struggling with profitability, but FaZe's management believes the long-term stability is worth the short-term hit.
FaZe will wind down existing crypto partnerships over the coming weeks. No new blockchain projects are in the pipeline. The organization is expected to announce a renewed focus on its competitive rosters and a slate of non-crypto content deals before the end of Q3. Whether the pivot pays off depends on how quickly FaZe can rebuild trust with its core audience — and with sponsors who were burned by the crypto experiment.
