In a dramatic turn of events, the creator of the Hawk Tuah meme coin ($ HAWK) have been hit with a lawsuit comply the coin ‘s catastrophic collapse. The cryptocurrency, which was promoted by social sensitive star Hailey Welch, too known as Hawk Tuah Girl, soar to a market capitalization of near $ 500 million before plummeting 95 % in value within hours of its launch on December 5, 2024.

The Ascending and Fall of $ HAWK

Hailey Welch, a 22 – year – old social media influencer, rose to fame in the summertime of 2024 after a viral street interview where she practice the term ” hawk tuah ” to describe a sexual urge deed. She leverage her newfound fame to trade ware and set off her own podcast, ” Talk Tuah, ” which became a top – five podcast. Welch then embark into the world of cryptocurrency, plunge the Hawk Tuah coin ($ HAWK) on the Solana blockchain.

The coin ‘s price remove a high of $ 0. 04916 on December 5 but quickly dropped to $ 0. 002439 by the following good afternoon. As of the writing of this article, the price of the $ HAWK token has fall down to about $ 0. 00054(1).

Suit and Allegation

A group of plaintiffs, who claim to have lost money vest in the $ HAWK token, filed a lawsuit in the United States District Court for the Eastern District of New York on December 19, 2024. The suit gens Tuah The Moon Foundation, overHere Limited, Clinton So, and Alex Larson Schultz as defendants, alleging that they illegally sold and promoted the coin, which was not a registered security(2)(3).

The cause seeks damages of over $ 150, 000 and accuses the defendants of leveraging Welch ‘s panoptic social metier adopt to market the token as a groundbreaking cryptocurrency project while essay to border American certificate natural law(3).

Welch ‘s Involvement and Response

Although Welch was not bring up as a defendant in the lawsuit, she has faced critique for her engagement in promoting the coin. Welch received an upfront payment of $ 125, 000 to promote the coin to her community, along with 50 % of nett trading proceeds after operate on costs pay up to third parties. She also owned 10 % of the integral $ HAWK supply, although she could not sell them for a year(1).

In response to the case, Welch put up a statement on Ex, saying, ” I pack this site extremely seriously and want to cover my rooter, the investor who have been affected, and the broader residential area. I am fully get together with and am committed to assisting the legal team representing the individuals impacted, every bit well as to help uncover the truth, hold the responsible parties accountable, and resolve this affair. “(2)(3)

Implications and Controversies

The Hawk Tuah coin debacle raises questions about the part of influencers in cryptocurrency ventures and the need for stricter regulations in the industry. The case highlights the risks associated with adorn in unregistered securities and the grandness of conducting thorough inquiry before investing in any cryptocurrency projection.

As the cryptocurrency food market continues to evolve, it is essential for investors to be conservative and for regulators to remove a penny-pinching look at the manufacture to forbid similar incident in the future.

Reference :

(1) Blockchain. bakermckenzie. com : Hawk Tuah Girl is Trying to Distance Herself From the Collapse of Her Hawk Meme Coin(2) Fox5atlanta. com : Chemical Group behind viral ‘ Hawk Tuah ‘ star ‘s meme coin hit with lawsuit over crash(3) The-independent. com : Viral Hawk Tuah Girl breaks silence over financial red from her branded meme coin(4) Topclassactions. com : Lawsuit alleges ‘ Hawk Tuah ’ crypto not registered as security

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