Investors Sue Over $HAWK Token Crash Promoted by Hailey Welch

The rumors of investors who had lost their life earning by investing in the Hailey Welch's Hawk Tuah cryptocoin planning to sue was in the air for some time.

Investors in the meme coin created by Hailey Welch, also known as Hawk Tuah Girl, are reportedly preparing to sue over the token's dramatic crash.

According to Bloomberg, investors have filed complaints with the U.S. Securities and Exchange Commission over the failure of Solana-based meme coin HAWK, alleging that it was a pump-and-dump scam.

The complaints allege that the meme coin's promoters misled investors, leading to massive losses.

Investors have filed complaints with the SEC over the failure of Solana meme coin HAWK, alleging that it was a pump-and-dump scam.

The complaints, filed on behalf of investors who lost money in HAWK, allege that its promoters misled investors, leading to massive losses.

However, the SEC has yet to officially confirm the complaints or announce any investigations.

The meme coin, promoted by Welch, had a rocky launch on December 4. Initially, its value surged to hit $490 million, but it tanked to less than $91 million in 30 minutes, wiping out many investors' hard-earned money.

The lawsuit, filed against Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz, alleges that Welch's fame was used to promote the meme coin as a registered security. Cayman Island-based sellers filed the lawsuit, and according to The Post, investors lost a total of $151,000 by investing in the crypto coin.

The lawsuit does not name Hailey Welch but includes Alex Schultz, also known as Doc Hollywood, as a defendant. According to crypto newspaper Bitcoin.com News, Shulz is the son-in-law of Howie Mandel, who was Welch's crypto adviser and the driving force behind her decision to launch the meme coin.

Shulz had the final say in all decisions regarding the crypto coin, including token decisions, fees, and treasury.

Doc Hollywood (Alexander Schultz Larson) ran AllbotAI and just rug pulled on the Hawk Coin. He is the son in law of Howie Mandel. Lex Larson is Doc's common name. Also Andy helped him with it.

Alex Shulz, also known as Doc Hollywood, is a multi-talented DJ, music producer, and song lyricist.

He began his music career in partnership with his friend Louie Rubio, producing music and hosting DJ parties.

One of his best-known tracks, ‘We Run LA,’ topped the charts and was a regular feature on Ryan Seacrest's Top 40 radio show.

The lawsuit alleges serious irregularities, stating that the Tuah Foundation reportedly sold 17% of their tokens to groups post-launch of the $HAWK coin to avoid securities law.

The lawsuit also alleges that the group promoted the remaining tokens, which were a massive 83%, without ensuring that the purchases were made outside the US.

The lawsuit alleges that the entire project was designed to capitalize on the US market.

An OverHere spokesperson responded to the lawsuit, telling Bloomberg:

“We have been very clear about the limited scope and scale of our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong.”