Internet personality Haliey Welch, popularly known as the “Hawk Tuah Girl,” announced on Friday that she is fully cooperating with attorneys representing individuals affected by the recent downturn of the cryptocurrency meme coin $HAWK. Welch was prominent in the launch of the coin earlier this month, which is named after her viral catchphrase, but shortly after its debut, the value of $HAWK experienced a dramatic decline. This sparked allegations of fraudulent activity against Welch and others involved with the cryptocurrency.
In response to the rapid drop in the coin’s value, Welch’s team suggested that automated trading bots, referred to as “snipers,” manipulated the market by buying tokens upon release and selling them quickly to cash in on price spikes. A lawsuit was filed on Thursday in the United States District Court for the Eastern District of New York by investors who claimed that the coin’s creators—including overHere Ltd., founder Clinton So, and social media influencer Alex Larson Schultz—had unlawfully promoted the coin without proper registration with the SEC. While Welch is not named as a defendant, she expressed her intent to assist those affected and to help uncover the truth behind the circumstances surrounding the $HAWK coin’s volatility.
In a message on social media, Welch reached out to those who may have suffered losses, encouraging them to contact the law firm Burwick PLLC, which, in collaboration with Wolf Popper LLC, is advocating for the affected investors. These firms highlighted that the market capitalization of $HAWK skyrocketed to $491 million shortly after its release, only to plunge by over 90% in just a few hours, leaving many first-time investors—particularly those drawn in by Welch’s involvement—facing considerable financial setbacks.
Welch has successfully built her brand since her rise to fame, framing her recent foray into cryptocurrency as a way to engage with her audience. Although initially skeptical about the crypto landscape, she began to see it as a valuable platform for connecting with her fans after attending several conferences. Despite the controversies surrounding the launch, she affirmed that neither she nor the coin’s creators sold any of their holdings.
Memecoins, like DOGE and others inspired by internet memes, often experience severe fluctuations in value driven by social media trends. This volatility has led to scrutiny regarding the roles of celebrities in promoting these cryptocurrencies without transparent communication regarding their financial stakes. The law firms representing the affected investors have highlighted that this incident underscores the risks of celebrity-endorsed tokens, warning of the dangers faced by everyday investors.
This situation serves as a cautionary tale about the volatility in the cryptocurrency market, particularly for new investors. However, there is still hope that through legal avenues, those affected may find some resolution and accountability. By cooperating with legal efforts, Welch is demonstrating a willingness to address the grievances of investors while navigating the complexities of the evolving cryptocurrency landscape.