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A group of investors has filed a lawsuit against the team behind the HAWK memecoin, which is connected to internet sensation Haliey “Hawk Tuah Girl” Welch, claiming violations of securities regulations.
According to TheBlock, a District Court of New York received a lawsuit last week concerning the HAWK memecoin, which gained traction through its connection to viral internet personality Haliey “Hawk Tuah Girl” Welch. The lawsuit contends that HAWK operated as an unregistered security and inflicted significant financial losses on crypto investors, following a dramatic decline in the coin’s value that devastated numerous investors.
BREAKING: Team behind HAWK memecoin, tied to 'Hawk Tuah Girl,' sued for alleged securities law violations.
Twelve plaintiffs who invested in HAWK, collectively experiencing a financial loss of $151,000, brought the complaint forward and requested a jury trial.
She has not… pic.twitter.com/jA958mm98G
— unusual_whales (@unusual_whales) December 19, 2024
Twelve plaintiffs, who collectively lost more than $151,000 in HAWK investments, have filed a complaint asserting that the token displayed characteristics of an unregistered security under established legal standards. They are requesting a jury trial to address their claims.
Court documents reveal that HAWK allegedly functioned as an unregistered security by attracting newcomers to cryptocurrency investment who later suffered substantial losses as the token’s value deteriorated. The plaintiffs maintain that the token established a common enterprise through fund pooling and linked its success to the combined efforts of Welch and her project team.
Legal documents further indicate that HAWK’s marketing strategy led investors to anticipate profitable returns, with the token’s performance largely dependent on the actions of Welch and her associates.
The $HAWK TUA Memecoin Dev Made Over $2 Million in 10 minutes?!
96% of the supply is held in one cluster
Main Takeaway: Stay Away From Celebrity Coins
Here's the situationđŸ‘‡ pic.twitter.com/tKiPAt5cGZ
— BentoBoi (@BentoBoiNFT) December 5, 2024
“Despite these clear indications of its status as a security, the $HAWK Token was not registered by Defendants,” the complaint asserts. The lawsuit also alleges that the Tuah Foundation, an organization linked to the project, managed a wallet that accumulated $3 million from token transaction fees.
Welch, who became an internet sensation in June 2024 after her “hawk tuah” phrase went viral during a street interview, saw the token launched on the Solana blockchain through the web3 platform OverHere on December 4. HAWK initially soared to a market capitalization of roughly $400 million before experiencing a devastating 90 percent decline.
After vanishing from social media following the token’s price collapse, Welch only reappeared when the lawsuit emerged, stating that she is taking the situation “extremely seriously.”
