Hawk Tuah Girl’s Cryptocurrency Team Sued After ‘Fans Lost Life Savings’
Social media influencer Haliey Welch, known as the “Hawk Tuah Girl,” is embroiled in controversy after her cryptocurrency venture, $HAWK Token, left investors with massive financial losses.
Welch has made a career off the back of a viral video. Credit: Michael Tullberg/Getty
The memecoin, which Welch promoted heavily to her 2.6 million Instagram followers and podcast audience, launched on December 4, 2024. It initially skyrocketed, reaching a market capitalization of nearly $500 million, but crashed by over 90% within hours, devastating many who invested.
The Lawsuit
A group of investors has filed a lawsuit in the U.S. District Court for the Eastern District of New York, targeting:
- Tuah The Moon Foundation
- overHere Ltd.
- Its founder, Clinton So
- Influencer Alex Larson Schultz, aka Doc Hollywood
The suit accuses these parties of unlawfully promoting and selling $HAWK Token without proper registration, causing substantial financial harm.
One investor reportedly lost $70,000, contributing to total claimed damages of over $151,000.
Despite her significant role in promoting the token, Welch is notably not named as a defendant in the case.
Hailey Welch launched her crypto coin earlier this month. Credit: Michael Tullberg / Getty
Accusations of Misconduct
The lawsuit alleges that Welch’s online presence was leveraged to market the cryptocurrency, emphasizing themes of community engagement and inclusivity to attract unsuspecting investors.
Critics claim the token’s dramatic rise and fall was a classic “pump and dump” scheme, in which creators and early investors profit at the expense of latecomers.
Legal and Regulatory Implications
Legal experts warn of potential repercussions for failing to register $HAWK Token as a security. According to Yuriy Brisov, a partner at Digital and Analogue Partners:
“The United States Securities and Exchange Commission (SEC) could bring civil charges for securities fraud if the token qualifies under the Howey Test.”
The case highlights increasing scrutiny of social media influencers who promote financial products without disclosing risks.
Welch’s Silence
Since the token’s collapse, Welch has gone silent on social media, halting Instagram posts and podcast episodes. Her current whereabouts remain unknown, and she has not issued any statements addressing the controversy.
Lessons and Warnings
The lawsuit and $HAWK Token’s failure serve as a stark reminder of the risks inherent in cryptocurrency investments—especially those endorsed by celebrities or influencers.
Investors are urged to:
- Conduct thorough research.
- Exercise due diligence.
- Understand the volatile nature of cryptocurrency markets.
Featured Image Credit: Michael Tullberg/Getty
