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Investors Sue Hawk Tuah Memecoin Creators Over Alleged Securities Violations and Financial Losses.
Investors have filed a lawsuit against the creators and promoters of the Hawk Tuah ($HAWK) memecoin, alleging violations of securities laws and deceptive practices leading to substantial financial losses.
Background on the Hawk Tuah Memecoin
Launched on December 4, 2024, the $HAWK token was heavily promoted by social media influencer Haliey Welch, known as the “Hawk Tuah Girl,” who gained fame from a viral video earlier in the year. Leveraging her substantial online following, Welch endorsed the memecoin across various platforms, generating significant investor interest.
Allegations and Legal Action
The lawsuit, filed in the U.S. District Court for the Eastern District of New York, names several defendants, including the Tuah The Moon Foundation, overHere Ltd., its founder Clinton So, and influencer Alex Larson Schultz (also known as Doc Hollywood). The plaintiffs allege that the defendants engaged in the promotion and sale of unregistered securities, misleading investors about the token’s legitimacy and potential returns.
Financial Impact on Investors
Following its launch, the $HAWK token’s market capitalization briefly soared to approximately $490 million but plummeted by over 90% within hours, resulting in significant financial losses for investors.
Regulatory Concerns
The lawsuit contends that the $HAWK token exhibits characteristics of an unregistered security under established legal precedent, thereby violating the Securities Act by not being registered with the Securities and Exchange Commission (SEC). This raises concerns about regulatory compliance and the responsibilities of cryptocurrency promoters and creators in ensuring adherence to securities laws.
Current Status and Public Response
Since the token’s collapse, she has remained silent on social media and has not publicly addressed the controversy, leading to speculation about her involvement and the future of her public endeavors.
Conclusion: Investors Sue Hawk Tuah Memecoin Creators
The lawsuit against the creators and promoters of the Hawk Tuah memecoin underscores the potential risks associated with investing in cryptocurrency projects, particularly those lacking regulatory compliance and transparency.
It highlights the need for due diligence by investors and accountability among influencers and developers in the rapidly evolving digital asset world.
