Investors Take Legal Action Against Hawk Tuah Memecoin Over Financial Losses
Promoted by internet personality Haliey Welch, known as the ‘Hawk Tuah Girl’, the token’s rapid decline has led to allegations of securities violations and financial misconduct.
Background
Haliey Welch gained viral fame earlier this year through a widely circulated video, earning her the nickname ‘Hawk Tuah Girl’. Capitalizing on her online popularity, Welch launched the $HAWK memecoin on December 4, 2024. The token initially surged, reaching a market capitalization of nearly $490 million, before plummeting over 90% within hours, resulting in substantial investor losses.
Legal Allegations
The lawsuit, filed by Burwick Law on behalf of affected investors, alleges that the $HAWK token was marketed as a security without proper registration with the U.S. Securities and Exchange Commission (SEC). The plaintiffs claim that the rapid devaluation of the token indicates potential fraudulent activity, including a possible pump-and-dump scheme.
Potential Legal Implications
Legal experts suggest that Welch and her associates could face serious charges if found guilty of securities violations. Potential charges include wire fraud and money laundering, especially if evidence of intentional deception or financial misconduct emerges.
Public Response
The incident has sparked widespread criticism on social media, with many accusing Welch of orchestrating a scam. Despite the backlash, Welch has denied any wrongdoing, stating that neither she nor her team sold any tokens during the launch and that they attempted to prevent market manipulation by implementing high initial fees.
Emma Bennett is a lifestyle enthusiast dedicated to exploring the trends, tips, and ideas that enhance everyday living. From wellness routines and home decor inspiration to personal growth and modern etiquette, Emma provides readers with insights to live a balanced and fulfilling life. Her stories are a blend of creativity and practicality, designed to inspire and empower.
