First Comes Fame, Then the Cryptocurrency — Then the Lawsuit

Haliey Welch, a Tennessee native who was launched to internet stardom this summer thanks to a street interview

Haliey Welch, who became an internet sensation earlier this year for her street interview antics, has finally addressed the class action lawsuit filed over her cryptocurrency $HAWK.

In a statement posted on X (formerly Twitter) on Friday, Welch acknowledged the suit but noted that it only names her crypto partners, Alex Larson Schultz (“Doc Hollywood”) and Clinton So, along with So’s platform overHere and the Cayman Islands-based Tuah the Moon Foundation.

"I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community,” Welch wrote. “I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter.”

She went on to advise those who lost money on $HAWK to contact Burwick Law, the firm that filed the suit against Schultz and So and advertised its services on X in the immediate aftermath of the coin crash.

"I will continue to keep you updated on any further developments,” Welch added.

The suit, filed in federal court in Manhattan, includes a dozen plaintiffs who claim to have collectively lost more than $150,000 in the $HAWK debacle. It alleges that the defendants “leveraged Welch’s celebrity status and connections” and “created a speculative frenzy” in order to jack up the coin’s price as trading began, ultimately luring in “first-time cryptocurrency participants” who were drawn to the project as fans of Welch.

The complaint contends that Schultz and So violated securities laws, and even indicated their efforts to skirt those laws on the Spaces call. It notes, too, that $HAWK was never registered with the Securities and Exchange Commission.

The choice to go after Welch’s collaborators rather than the self-described “Queen. of Memes” herself suggests what many observers have already assumed: that she played no meaningful role in how $HAWK was conceived or distributed, serving merely as a face to market the token.

As YouTuber Stephen Findeisen, who investigates crypto fraud under the handle Coffeezilla, reported earlier this month, Welch had received an up-front payment of $125,000 to promote the coin to her community, along with 50 percent of net trading proceeds after operating costs paid to third parties. This is in addition to owning 10 percent of the entire $HAWK supply, which she cannot sell for a year.

Whether those stakes will amount to anything is anyone’s guess.