‘Hawk Tuah’ Girl Hailey Welch Faces Lawsuit After 95% Crash
Hailey Welch, popularly known as “Hawk Tuah Girl,” has been out of public view for two weeks, sparking a wave of controversy surrounding her cryptocurrency project Hawk Tuah (HAWK) memecoin.
Welch, best known for her podcast “Talk Tuah,” last communicated with viewers that she was “going to bed,” shortly before the value of her memecoin plummeted by a staggering 95%.
Investors sue Hailey Welch over alleged Memecoin fraud
The fallout from the Hawk Tuah token’s rapid decline was swift, with disappointed investors taking legal action against Welch and several related entities.
The lawsuit, filed on behalf of affected investors, accuses Welch, the Tuah The Moon Foundation, OverHere Ltd., its executive Clinton So and token originator Alex Larson Schultz of orchestrating a fraudulent “pull and pull.”
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According to court documents get Newsweek’s complaint alleges that the Hawk Tuah memecoin’s “illegal promotion and sale” resulted in significant financial losses, particularly to novice cryptocurrency investors.
The lawsuit highlights that many investors were attracted to the Hawk Tuah project because of Welch’s views. public recognition and her influential role in its development roadmap. It noted that “the rapid decline in the token’s value caused significant losses to investors who relied on Welch’s participation and the project’s established roadmap.”
The Hawk Tuah token initially attracted attention as part of a community-driven wave of meme coins, driven by Welch’s “aggressive promotion” on social media platforms and her podcast.
However, allegations of mismanagement and deceit soon surfaced after the token’s value plummeted almost overnight, wiping out millions of dollars. investor funds.
Insider trading charges
Bitcoinist report Two weeks ago, on-chain investigator Coffeezilla accused Hailey Welch and the Hawk Tuah team of defrauding investors following the token’s launch.
On November 26, Welch announced the launch of Hawk Tuah memecoin in partnership with Web3 platform OverHere, claiming that it would “redefine the cryptocurrency field.”
After launching on December 4, the token’s market capitalization soared to $500 million, only to plummet 88% within minutes, making it the dominant token holder Their assets were quickly sold.
As the token’s value plummeted, investors and market analysts sounded the alarm about potential insider trading and a coordinated pull orchestrated by the project’s creators. Many of the affected investors, many of whom are new to the cryptocurrency space, are Welch fans.
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After backlash, Welch revealed the coin’s “Hawkanomics”, which suggested that only 2% of people total supply was allocated for the public allocation, while 17% was earmarked for a “strategic allocation,” which was fully unlocked at launch and purportedly flowed into internal wallets.
During the X Space discussion, Coffeeezilla confronted the Hawk Tuah team about the over $1 million in fees incurred by the token and questioned their handling of the situation. He said the sell-off was not just the result of market sniping, but also related to the following factors: insider trading Relevant to the creator’s account.
Despite the team’s denials, Coffeezilla criticized the offering as one of the worst he has ever reviewed, labeling the token economics as “horrible” and calling for accountability over the pre-sale funding (approximately $16.69 million).
Featured image from Yahoo, chart from TradingView.com
