The promoters and creators of the “Hawk Tuah”Bloomberg Law reported Dec. 19 that investors are suing memecoin – inspired by HalieyWelch – claiming it is an unregistered investment and has caused financial losses due to a steep price drop.
The lawsuit was filed in the US District Court for the Eastern District of New York and alleges that Tuah The Moon Foundation, overHere Ltd, its founder Clinton So, and influencer Alex Larson Schultz are responsible for a 90% decline in the token’s value, which left investors with more than $151,000 in losses.
The HAWK token capitalized on Welch’s internet stardom, which originated from her widely shared “Hawk Tuah Girl” persona. Welch may not be a defendant but she is a person. Promote your business with our help The memecoin is a buzz-building campaign that uses pre-sale campaigns, discounted token offerings and social media to spread the word.
The token was valued at 16.69 million dollars.
HAWK’s market cap soared to $491m in just a few hours after its launch on December 4, before falling below $100m shortly thereafter. The plaintiffs allege that the token’s creators exploited Welch’s fame to market the memecoin as a form of investment, equating token ownership with shareholder status.
On-chain data platform Bubblemaps reported that, on launch, the same group of related wallets controlled 96% of HAWK’s supply.
A possible offshore scam
The complaint alleges that the defendants tried to set up the Tuah The Moon Foundation offshore to get around US securities laws. However, they allegedly made no serious effort to restrict the token’s sale to US investors.
Document stated that:
“The project clearly was intended to take advantage of the American market.”
Meanwhile, following the token’s collapse, Welch has stepped away from the public eye, ceasing social media posts and halting her podcast.
HAWK was the last in a series of failed memecoins involving celebrities this year. Holders of tokens related to Caitlyn and Andrew Jenner, Jason Derulo the singer, as well as Andrew Tate suffered significant losses.
Posted In: Crypto, Featured, Legal, Memecoins Author 
Gino Matos
Gino is a journalist and law graduate with over six years experience. He focuses his expertise on Brazilian blockchain and the developments of decentralized finance.
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Assad Jafri
AJ is a dedicated journalist who has spent over a decade honing his craft in various countries. He specializes in financial reporting and now concentrates on cryptocurrency.
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