Investors Sue Promoters of “Hawk Tuah” Memecoin Over Alleged Securities Violations
Investors of the “Hawk Tuah” memecoin, inspired by Haliey Welch, have filed a lawsuit against the promoters, alleging that the token was an unregistered security that led to significant financial losses after a sharp price collapse.
Lawsuit Details
- The lawsuit was filed in the US District Court for the Eastern District of New York.
- The defendants named in the lawsuit include Tuah The Moon Foundation, overHere Ltd, founder Clinton So, and influencer Alex Larson Schultz.
- Investors claim a 90% decline in the token’s value, resulting in over $151,000 in losses.
Token Promotion and Launch
The HAWK token leveraged Haliey Welch’s internet popularity, which stemmed from her “Hawk Tuah Girl” persona. Although Welch is not a defendant in the lawsuit, she assisted in promoting the memecoin through social media and her podcast.
- The pre-sale of the token raised $2.8 million, with a valuation of $16.69 million.
- Upon launch on Dec. 4, the market cap surged to $491 million before plummeting below $100 million shortly after.
Alleged Offshore Operations
The complaint alleges that the defendants attempted to structure the Tuah The Moon Foundation as an offshore entity to evade US securities laws, despite not actively preventing US investors from participating in the token sale.
“The project clearly was intended to take advantage of the American market.”
Following the collapse of the token, Haliey Welch has retreated from the public eye, discontinuing social media activity and her podcast.
This incident with the HAWK token is part of a trend in failed celebrity-related memecoin ventures this year, with tokens associated with Andrew Tate, Jason Derulo, and Caitlyn Jenner also resulting in substantial losses for investors due to high supply concentration in a few wallets.
