Investors have filed a lawsuit against several individuals and entities associated with a cryptocurrency created by Hawk Tuah Girl Hailey Welch, in connection with which its value dropped dramatically by over 95% on December 4, the same day the HAWK memecoin launched.
HAWK Suffered a Great Collapse
Burwick Law, the firm representing the investors, filed a lawsuit in US federal court against the HAWK memecoin founders. The filing alleged that the plaintiffs suffered losses due to the illegal promotion and sale of the HAWK token. The victims stated that the token was offered to the public without registration and therefore acted against the law.
Following the HAWK memecoin launch, its price dropped rapidly, resulting in the sale of linked wallets holding 96% of the token supply. This caused great anger among investors and raised suspicions that the incident was a fraud attempt.
Hailey Welch Defends Her Project
Hailey Welch argued that the HAWK project is not just a fund-raising initiative. In a statement to Fortune magazine on December 4, he stated that his interest in cryptocurrency developed after attending conferences and saw it as a way to interact with his fans. Welch’s manager, Jonnie Forster, emphasized that the HAWK memecoin is different from other celebrity-backed projects.
HAWK isn’t just a fundraising initiative, Hailey Welch said.
The case involves several defendants, including Tuah The Moon Foundation, OverHere Ltd and its director Clinton So. Los Angeles-based memecoin marketer Alex Larson Schultz is also among the defendants.
In the continuation of the case, it was stated that the collapse that occurred after the rapid increase in value of the HAWK token shook the confidence in the project and caused investors to suffer great losses.
It is not yet clear how the cases will conclude. When considering requests for summary judgment, the judge may also order the case to be reviewed by a jury.
It seems that the HAWK memecoin incident once again reveals the importance of reliability in the cryptocurrency market.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
