Lawsuit for $HAWK Coin as Haley Welch Stays in Hiding
The Hawk Tuah coin ($HAWK) is the subject of a lawsuit filed by seventeen investors who lost $151,000 collectively when the memecoin’s value tanked after a “rug pull”.
A lawsuit has been filed against the Web3 platform overHere, who represented Haley Welch and helped to promote her memecoin $HAWK. The lawsuit alleges that Welch’s celebrity status was leveraged to make the coin seem more appealing and to rope in investors and that the coin’s creators then pulled the rug out from under investors and ran off with the profits.
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That appears to be what has happened in this case, and it has left many investors with massive losses and very angry. Welch has disappeared from the public eye for weeks following the debacle, issuing only a brief public relations statement that she would be working with her lawyers to look into what happened with the memecoin.
The lawsuit states that $HAWK was sold as an unregistered security, having all the earmarks of a security but not registered as one with the US Securities and Exchange Commission. The lawsuit includes not just overHere and its founder Clinton So, but also Alex Larson Schultz who promoted the token and Tuah the Moon Foundation, which allegedly received money from the sale of the coin.
Does the Lawsuit Have Merit?
There have been numerous court cases over the last few years alleging that cryptocurrency tokens have been sold illegally, without the right classification as securities. Not all of them involve obvious pump and dump scandals like this one, which adds a layer to the proceedings that could tip things in the plaintiff’s favor.
In this case, the memecoin underwent a frenzy of speculation after it launched, which caused the price to shoot up. Then, key investors sold their earnings and pocketed the profits, causing the coin to drop in value by 90%. Those withdrawals were traced back to accounts belonging to people in the organizations that are named in the lawsuit.
The token launched back on December 4th, 2024 and had a market cap of $16.69 million. The value climbed to $491 million in a few hours and then fell to less than $100 million not long afterwards. An additional lawsuit has been filed against promotional website Pump.com, which was involved in promoting the coin before the scandal broke. Stay tuned for more information on this lawsuit as it unfolds.
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