Michaela Alvez
Investors have filed a federal lawsuit against the creators of the HAWK meme coin, which was heavily promoted by influencer Hailey Welch before its value dropped significantly just hours after launching.
The meme coin saw its value plummet by over 95% within just 24 hours of its release on December 4. Following HAWK’s sharp decline, legal firm Burwick Law urged buyers affected by the drop to come forward for a potential lawsuit.
On December 19, the firm filed a lawsuit on behalf of 12 plaintiffs from the United States, who alleged that they suffered damages exceeding $151,000. The court filing stated that the lawsuit “arises from the unlawful promotion and sale of the Hawk Tuah cryptocurrency meme coin, known as the ‘$HAWK’ token (the ‘Token’ or ‘$HAWK’), which Defendants offered and sold to the public without proper registration.”
The lawsuit named several parties involved in the HAWK meme coin’s launch, including Tuah The Moon Foundation, which managed the funds from the coin’s sale, as well as the coin’s creator, OverHere Ltd, its executive Clinton So, and Los Angeles-based promoter Alex Larson Schultz.
Welch gained viral attention as the “Hawk Tuah” girl following a street interview that was shared on Tiktok where she used the phrase “hawk tuah” in a sexual context. She has since leveraged her internet fame into a successful merchandise line and podcast. Her show, Talk Tuah, has featured notable guests, including business mogul Mark Cuban.
The court filing stressed that many of the investors were new to cryptocurrency, attracted to the project by Welch’s involvement, her connections, and the aggressive promotion of the coin.
“The rapid decline in the Token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated road map,” the filing further stated.
According to Newsweek, in a December 4 interview with Fortune, Welch defended the HAWK token, insisting that it was “not just a cash grab,” despite its value plummeting by $440 million within 20 minutes. She explained that her perspective on cryptocurrency had shifted after attending conferences, and she now sees it as a “good way to interact with my fans.”
At the time of the token’s launch, Welch’s manager, Jonnie Forster, emphasized that the HAWK token was different from typical celebrity-backed crypto projects, stating that they were not encouraging people to buy it. Instead, their plan was to distribute free tokens to social media followers and fans who had purchased Welch’s merchandise.
Forster also revealed that Welch would own 10% of the total token supply, although she would be restricted from selling any of it for a year.
The plaintiffs are requesting a jury trial, which would determine the damages if the lawsuit succeeds.
Shytoshi Kusama Rejects HAWK Partnership
Following the coin’s launch, Shytoshi Kusama, the pseudonymous lead developer behind Shiba Inu, shared on X that the project’s team initially reached out to him, offering him the position of Key Opinion Leader (KOL) to help promote the token. However, Kusama declined the offer.
Although Kusama initially distanced himself from the $HAWK project, he later accepted an airdrop proposal from its team. The proposal aimed to distribute millions of tokens to the Shiba Inu community. On December 5, the official Shiba Inu X account retweeted the announcement of the airdrop.
Kusama criticized the abrupt and failed launch, stating they were “expecting time to set up the system to get the army involved and do things properly. And what happens? Instant launch?! Pump and obvious dumping; even denial of doing so! Which IMHO is shameful and just like 90% of crap on Solana.”
Kusama clarified that agreeing to the airdrop did not imply a partnership between himself and the team.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
