Haliey Welch needs to talk tuah lawyer. The viral star, a.k.a. Hawk Tuah Girl, has found herself in hot water after the group behind her meme coin, HAWK, was sued on Thursday for failing to properly register the cryptocurrency as a security. A group of people who invested in the coin — which soared to a $490 million market cap before experiencing a 90 percent crash hours later — are suing overHere Ltd. founder Clinton So and his company, the Tuah the Moon Foundation, and influencer Alex Larson Schultz for damages in excess of $151,000. Welch herself is not named in the suit.
However, just because she’s not named as a defendant does not free her from this mess. Welch’s name is all over the complaint, and attorneys for the plaintiffs argue that her involvement put their clients under the impression that HAWK was a registered security. “Many of the investors were first-time cryptocurrency participants drawn to the project through Welch’s involvement,” the complaint reads. “The rapid decline in the Token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated roadmap.”
In a statement shared to X, Welch said, “I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community.” She added, “I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter.”
A spokesperson for overHere, the web3 company that launched and promoted HAWK, told Bloomberg that the company had done nothing wrong. “We have been extremely transparent about the limited scope and extent of our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong,” they said.
This saga should probably serve as a warning to all future viral celebrities: Just stick to podcasting.
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