The crypto world has been rocked as investors sue Hawk Tuah girl Haliey Welch, claiming her involvement in promoting the $HAWK Token led to devastating losses.
This lawsuit exposes allegations of securities violations and raises questions about influencer-backed cryptocurrencies.
In this article, we’ll dive deep into the scandal, exploring its legal implications and the role Welch played in this contentious situation.
Understanding the $HAWK Token Controversy
The $HAWK Token quickly gained popularity after its launch on December 4, 2024, driven by TikTok star Haliey Welch’s endorsement.
Welch’s massive following of 2.6 million on Instagram and her podcast, Talk Tuah, became instrumental in promoting the token. These efforts helped the token reach a staggering market cap of $490 million.
However, the euphoria didn’t last. Within hours of its launch, the token’s value plummeted by over 90%, falling to below $100 million, leaving investors reeling.
Legal experts argue that the token’s creators, including Tuah The Moon Foundation and overHere Ltd, exploited Welch’s fame while allegedly violating securities laws.
Legal Allegations and Investor Losses
The lawsuit, filed in the US District Court for the Eastern District of New York, names several parties, including Tuah The Moon Foundation, overHere Ltd, and their founder, Clinton So.
Plaintiffs accuse the creators of using Welch’s celebrity status to promote the coin under misleading pretenses.
Investors collectively lost over $151,000, as revealed by court filings. The lawsuit further claims that 17% of the tokens were sold off post-launch to avoid compliance with US securities laws, deepening the crisis.
These allegations underline the dangers of investing in unregulated digital assets.
Role of Haliey Welch in the $HAWK Token Collapse
While Welch was not named in the lawsuit, her role cannot be ignored. Her branding of the token as “Hawk Tuah” and her podcast endorsements helped build investor trust.
Despite her silence following the crash, questions remain about her responsibility.
This incident also impacts Welch’s public image.
For readers interested in exploring more about her career and financial success, you can learn from her net worth and achievements in Hailey Welch’s career highlights.
The $HAWK Token Pre-Sale and Market Crash
The pre-sale phase of the $HAWK Token raised $2.8 million, with an initial valuation of $16.69 million. Despite the promising start, the token’s dramatic collapse led to widespread criticism.
This downfall demonstrates the volatility of cryptocurrency markets, especially when tied to celebrity endorsements.
The restructuring of Tuah The Moon Foundation as an offshore entity added further complexity to the case.
It raised suspicions of regulatory evasion, fueling investor skepticism about the creators’ intentions.
What’s Next for $HAWK Token Creators and Investors?
The lawsuit’s outcome will likely shape the future of influencer-backed cryptocurrency projects.
Creators of the $HAWK Token, including Clinton So and Alex Larson Schultz (known as Doc Hollywood), face mounting legal pressure.
As for Haliey Welch, the controversy raises questions about her future collaborations. Will she recover her reputation and regain public trust? Only time will tell.
Conclusion
The $HAWK Token crash highlights the high stakes of crypto investments and the risks of celebrity promotions.
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