WWYD Wednesdays!

The stories you are about to read are true, and all the names were changed to protect the innocent.

 I have a  friend named Alex who lies ALL of the time. At first I thought maybe I was tripping and getting Alex's stories mixed up with someone else, but I have another friend who confirms that YES they are a liar. I don't want to put them on blast, because I'm sure I will do it in a way that's embarrassing. As far as I know Alex is a good person. We've been friends for a couple of years now, and that haven't done anything to make me dislike them, however the excessive lying makes me not want to be in their presence at all.
My thing is I could never really be your "friend" if your lying to me. I guess it somewhat hurts because its like I can't truly be your friend if I'm not worthy of the truth. I have told them how I generally hate liars, and how I feel like that's the most disrespectful thing you could do. I did this thinking that maybe some kind of motor neuron in their brain would send a chemical signal to help balanced out their nerve system, which causes them to lie. (I made that up) The crazy thing is they agreed with me and started impulsively nodding their head like they we're at a Jay Z concert saying, " Oh yeah Amber I promise I feel you. I hate liars too." (side-eye)

 Now let me explain their lies. These aren't common lies like Oh I got XYZ's number, my mama got me these jeans, I have racks on racks of money in my bank account etc. These are volunteered lies like:( I was there when XYZ got shot and I held their hand with they took their last breath. Oh I can get you tickets to a knicks game you know Amar'e  Stoudemire is my cousin. I'm going on tour with Young Jeezy lies.) Alex tells me this bs on their own without me asking or provoking any of this information. My thing is if your going to lie, remember what the hell you said and keep it consistent. Their lies are so outrageous that me and a mutual friend of theirs call each other laughing about the lies that they have told us. Its become a game.

Apart of me feels like I'm wrong for not telling them I know whats up, but another part of me feels like they need to own up to it this bs. What would you do? Would you out them on their excessive lying or just unfriend them?