Haliey Welch’s crypto controversy is far from over. Investors have refused to suffer any more celebrity losses. The Ha Hawk Tuah girl has been sued together with those behind the launch after it infamously lost most of its value in one day.
Recent court filings acquired by multiple media outlets, including TMZ, reveal that investors in Welch’s Memecoin, referred to as “$HAWK token,” have leveled accusations against the Tuah The Moon Foundation.
This Cayman Islands-based organization, which raised funds through token sales, along with creator OverHere Ltd., executive Clinton So, and promoter Alex Larson Schultz, is alleged to have unlawfully promoted and sold crypto that purportedly lacked proper registration.
Hawk Tuah’s 15 minutes of fame ends in court
Haliey Welch, who shot to fame this year as the “Hawk Tuah” girl after a viral interview discussing sexual techniques, found herself at the center of a disastrous Solana meme coin launch earlier this month.
Burwick Law filed a federal lawsuit on behalf of investors in the HAWK TUAH memecoin, $HAWK.
— Burwick Law (@BurwickLaw) December 19, 2024
Learn more below. pic.twitter.com/ChKYhjBGf1
The price plummeted 93% from a peak market cap of $490 million, with allegations of a rug pull emerging immediately. In addition to the issue, a network of interconnected wallets controlling 96% of the supply sparked additional controversy, intensifying backlash as it was revealed that some of these wallets were offloading their holdings.
Hawk currently boasts a market capitalization of just $7.7 million, reflecting a decline of 23.5% for the day. A community note on an X post by OverHere, which garnered over 3.5 million views, indicated that Welch might need to “talk tuah judge” following the controversy.
Angry investors, angry creators, angry promoters
On the day of the token’s launch, Haliey Welch, Doc Hollywood, and a spokesperson from OverHere addressed a crowd of angry investors and spectators regarding the launch. At the X Spaces event, the trio made an effort to justify the launch; however, as the clamor escalated, Welch opted to call it a night.
Since that time, she has remained silent on social media.
Plaintiffs accuse those behind the whirlwind crypto sale of exploiting Welch’s celebrity position to generate a “frenzy.” They assert they took advantage of first-time crypto investors who suffered significant losses as the token’s value collapsed.
However, the plaintiffs make it clear that they are not accusing the crypto creators of fraud or irresponsible behavior. Rather, they are suing over the defendants’ claimed incompetence in connection to the Securities Act.
The plaintiffs are seeking damages of more than $150,000, but they are also open to any other amount the court may deem appropriate. Despite the outcry, Welch took to an X post and stated that her “team hasn’t sold one token.”
She added, “We tried to stop snipers as best we could through high fee’s in the start of launch on.”
What happens next? The defendants will be given the opportunity to respond to the complaint and are likely to seek summary judgment in their favor. If the judge does not award summary judgment, the pretrial proceedings will begin. Plaintiffs are seeking a jury trial, and if granted, the jury will determine damages if the claim is successful.
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