Investors Sue Hawk Tuah Producers, Allege Securities Fraud
Investors in Hailey Welch’s Hawk Tuah meme coin have filed lawsuits against several producers and promoters of the asset, accusing the group of securities fraud.
The lawsuit does not name Welch herself as a defendant, and she apparently will not be directly involved in the court proceedings.
Hawk Tuah Carpet Pull
The release of Hawk Tuah in early December was a major scandal. meme coin space. The HAWK token aroused huge enthusiasm upon its launch, with a market value of US$500 million, but It collapsed after 20 minutes. According to a recent litigationinvestors in some assets are seeking legal action against the responsible parties.
“The project is clearly designed to exploit the U.S. market. Although there are clear indications that it Safetythe HAWK tokens are not registered by Defendants,” the lawsuit states.
In other words, the plaintiff was not directly concerned Carpet tension The whole disaster happened. However, the launch of Hawk Tuah appears to be a classic example of this scam. Some experts have even suggested that it has a Chilling effect on the broader memecoin market.
Instead, they focus on apparently crude features, such as an asset’s token distribution.
The plaintiff claims that overHere Ltd, the company that launched Hawk Tuah, “literally means that token holders are essentially shareholders,” despite the extremely unequal distribution. The lawsuit could attack the company along the way by alleging that it violated securities laws fruitful argument.
Although Carpet tension keeps decreasing Internet fame and meme coins in 2024 Scam It’s still possible to make a strong cocktail. For example, YouTuber MrBeast recently Using his fame to promote volatile assets In an insider trading scheme. Even hacked celebrity accounts can Added fake meme coins.
Meme coins live or die by hype bubbles, where celebrity endorsements can enhance the value of fraudulent assets. Haley Welch herself is not directly named in the lawsuit, and her fate may not be affected even if the plaintiff faces serious consequences. Regardless, her credibility in the community will certainly take a hit.
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