Hawk Tuah Memecoin Faces Lawsuit Over Financial Losses

Investors Take Legal Action Against Hawk Tuah Memecoin Over Financial Losses

Internet personality Haliey Welch, also known as the ‘Hawk Tuah Girl,’ has found herself at the center of a legal storm after the memecoin token she promoted, $HAWK, experienced a rapid decline, leading to substantial financial losses for investors.

Welch rose to fame earlier this year following a viral video, which prompted her to capitalize on her online popularity by launching the 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 significant losses for those who purchased the token at its peak.

Investors Take Legal Action Against Hawk Tuah Memecoin Over Financial Losses

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.

However, the legal complaint 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.

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.

The incident serves as a cautionary tale, highlighting the potential risks and legal implications associated with memecoins and unregulated cryptocurrencies. It also underscores the importance of conducting thorough research and exercising caution before making any investment decisions.