Hawk Tuah Crypto Project Sued Over Memecoin, Welch Responds

HAWK Memecoin Investors File Suit

Disgruntled investors are finally having their day in court after buying the HAWK memecoin on December 4, only to witness it implode and lose more than 90% of its value within hours of its launch.

Haliey Welch, also known as “Hawk Tuah Girl,” rose to Internet fame after a viral, sexually charged video clip in June. She leveraged her newfound celebrity into various ventures, including an animal foundation, a podcast, and the HAWK memecoin.

However, the botched HAWK token launch may now be her most controversial endeavor. The token’s launch, orchestrated by Alexander Larson Shultz (a.k.a. “Doc Hollywood” and son-in-law of actor and comedian Howie Mandel) and promoted by Overhere, has become the focal point of a lawsuit alleging violations of federal securities laws.

The Lawsuit Details

Court documents filed in New York on Thursday reveal seventeen plaintiffs suing Shultz, Overhere, Clinton So (founder of Overhere), and the Tuah the Moon Foundation. They allege the defendants sold the HAWK token to the public “without proper registration,” violating securities laws.

“The HAWK token exhibits all the characteristics of an unregistered security under established legal precedent,” the filing states. “Despite these clear indications of its status as a security, the HAWK token was not registered by defendants.”

Welch’s Role and Response

Interestingly, Welch is not named as a defendant in the lawsuit. This may be because she has reportedly been cooperating with Burwick Law, one of the law firms representing the plaintiffs. Welch recently broke her silence on X (formerly Twitter), saying:

“I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted. If you have experienced losses related to this, please contact Burwick Law.”

This marked her first post on the platform since the HAWK token’s disastrous launch.

Investor Losses and Claims

The plaintiffs claim to have collectively lost more than $151,000, with one individual from Brooklyn, New York, alleging losses of $70,000. The lawsuit seeks restitution of lost funds with interest and reimbursement of legal costs.

Court filings highlight the project’s reliance on Welch’s celebrity status, stating:

“Many of the investors were first-time cryptocurrency participants drawn to the project through Welch’s involvement. The rapid decline in the token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated roadmap.”

What Lies Ahead

As the lawsuit unfolds, it underscores the risks associated with cryptocurrency investments, particularly those tied to high-profile individuals. Whether restitution will be achieved remains uncertain, but the case serves as a stark reminder of the volatility and legal complexities in the crypto space.