Hawk Tuah Token Collapse: Investors Sue Hailey Welch and Associates

Internet sensation Hailey Welch, known for her viral catchphrase “Hawk Tuah,” and her partners are facing a lawsuit over allegations of fraud related to their cryptocurrency project. The lawsuit, filed by disgruntled investors, accuses Welch and her associates of orchestrating a fraudulent scheme that led to significant financial losses.

The Rise and Fall of Hawk Tuah

Hailey Welch gained immense popularity through her podcast “Talk Tuah,” where she frequently promoted the Hawk Tuah memecoin. The token initially saw a meteoric rise, attracting numerous first-time cryptocurrency investors. However, the value of the Hawk Tuah token plummeted by 95% shortly after its launch, leading to accusations of a “rug pull” by the project’s creators.

Investor Allegations

The lawsuit, filed on behalf of affected investors, names Welch, the ‘Tuah The Moon Foundation,’ OverHere Ltd, its executive Clinton So, and the coin’s promoter, Alex Larson Schultz, as defendants.

According to court documents, the complaint states that “the unlawful promotion and sale of the Hawk Tuah cryptocurrency memecoin” resulted in substantial financial losses for investors, reports Yahoo!!

Hawk is live!!!

HAWKThXRcNL9ZGZKqgUXLm4W8tnRZ7U6MVdEepSutj34 pic.twitter.com/9GFgYwpeFA

— Haliey Welch (@HalieyWelchX) December 4, 2024

Welch’s Disappearance

Adding to the controversy, Welch has disappeared from the public eye, fueling speculation about her involvement in the alleged fraud.

Her last public statement was made during a live audio session on X (formerly Twitter), where she casually mentioned, “I’m gonna go to bed and I’ll see you guys tomorrow,” before abruptly exiting the conversation.

Legal and Financial Repercussions

The fallout from the Hawk Tuah debacle has been swift and severe. Investors who backed the project are now seeking legal recourse, claiming that Welch’s public endorsement and involvement in the project’s roadmap played a pivotal role in attracting them.

The lawsuit alleges that many investors were first-time cryptocurrency participants drawn to the project through Welch’s influence.

Public Reaction

Public opinion on Welch’s disappearance and the lawsuit is divided. While some critics have branded her actions as a “career-ending move,” others have taken a lighter tone, dubbing her “Sleeping Beauty”.

Welch’s crypto partners have pointed fingers at Alex Larson Schultz, also known as “Doc Hollywood,” who they claim managed key aspects of the token’s distribution and finances.

Related Stories:

$HAWK Token Plummets 99%; Insider Trading or Crypto Scam? SafeMoon’s Rocket Crashes: Crypto Project Files for Chapter 7 Bankruptcy; Price Plunges 31% XRP vs SEC latest: Another Attorney Quits Ripple’s Legal Team in Ongoing SEC Lawsuit Cristiano Ronaldo Sued for $1 Billion Over Allegedly Deceptive Binance NFT Promotion Tamannaah Bhatia Grilled by ED in Explosive HPZ Token App Scam Cardano Investors Bleed Red as ADA Price Tanks THORChain (RUNE) Jumps 41% as Investors Flock to Decentralized Finance Elon Musk Denies Wrongdoing in $258B Dogecoin Case