Haliey Welch’s HAWK token team breaks silence to shift the blame

Investors are suing the team behind Haliey Welch's HAWK crypto project in a lawsuit alleging that crypto-newbies enticed by her endorsement suffered significant damages when the token crashed.

Investors have filed a lawsuit against the team behind Haliey Welch's HAWK crypto project, alleging that crypto-newbies enticed by her endorsement suffered significant damages when the token crashed.

According to a report by Newsweek, the lawsuit, filed on Monday, claims that the "defendants offered and sold to the public without proper registration." This, it says, resulted in the "unlawful promotion and sale of the Hawk Tuah cryptocurrency memecoin."

The lawsuit also states that "many of the investors were first-time cryptocurrency participants drawn to the project through Welch's involvement," and that after the token crashed, it caused "substantial damages to investors who relied on Welch's participation and the project's stated roadmap."

The team behind HAWK has maintained that they "never sold a single token" and that Schultz was to blame for the majority of the issues. However, it did admit that it should have been more diligent.

The defendants named in the lawsuit are the Tuah The Moon Foundation, overHere Ltd. and its exec, Clinton So, and Alex Larson Schultz, a.k.a. "Doc Hollywood." Welch is not named as a defendant.

The lawsuit claims that the defendants "leveraged Welch's celebrity status and connections to enhance the Token's credibility and appeal." It also claims that "aggressive" promos and growth promises were used to create a "speculative frenzy."

Welch has not posted anything on her social media channels since launching the token. In fact, the last thing she posted - that she was going to bed - quickly became a meme.

The lawsuit seeks a trial by jury and over $150,000 in damages.