Internet personality Haliey Welch, famously recognized as the “Hawk Tuah Girl,” announced on Friday her commitment to fully cooperate with legal representatives of individuals affected by the recent turmoil surrounding the cryptocurrency $HAWK.
Welch played a significant role in launching the $HAWK coin, which is inspired by her viral catchphrase, earlier this month. Shortly after its launch, the coin’s value dropped sharply, leading to accusations of a potential scam directed at Welch. Her team attributed the drastic fluctuation to “snipers” — automated bots that quickly buy tokens after their release and sell them at inflated prices.
Investors of the $HAWK cryptocurrency filed a lawsuit on Thursday in the United States District Court for the Eastern District of New York, targeting overHere Ltd. and its founder Clinton So, alongside social media influencer Alex Larson Schultz. They allege that these parties improperly promoted and sold the cryptocurrency without the necessary registration with the Securities and Exchange Commission (SEC). Notably, Welch was not included as a defendant in the lawsuit.
In her response on social media, Welch expressed her serious concern for the situation and encouraged affected investors to reach out to the law firm Burwick PLLC. She stated her dedication to assisting the legal team in uncovering the truth and ensuring accountability.
The legal firms involved reported that the token’s market capitalization initially soared to $491 million on its launch day, December 4, but plummeted by over 90% shortly afterward, falling below $100 million. This volatility inflicted significant losses on investors, particularly newcomers drawn in by Welch’s involvement.
Welch made headlines by entering the cryptocurrency space after gaining fame online. Beyond promoting the $HAWK coin, she has expanded her brand with merchandise, a podcast titled “Talk Tuah,” and an AI dating assistant app called Pookie Tools. Initially skeptical about cryptocurrency, she shifted her perspective following attendance at various crypto conferences, viewing it as a means to connect with her audience.
In a post after the launch chaos, Welch clarified that neither she nor her associates had sold any of their holdings. Memecoins, like $HAWK, often experience high volatility driven by social media hype, and the risks associated are not lost on many in the industry. Legal action against celebrities endorsing cryptocurrencies without full transparency has become increasingly common.
In a joint statement, the law firms representing the investors expressed concern over the exploitation of celebrities leading to significant harm to ordinary people.
This situation serves as a cautionary tale but also highlights the importance of transparency and accountability in the rapidly evolving crypto landscape. As the legal proceedings progress, there is an opportunity for increased awareness and safeguards to protect investors in the future. The community movement toward holding influential figures responsible for their endorsements could lead to more ethical practices in the cryptocurrency world.
Summary: Haliey Welch, known as the “Hawk Tuah Girl,” is cooperating with legal efforts after a significant drop in the value of the $HAWK cryptocurrency she helped launch. Investors have filed a lawsuit against the coin’s creators alleging improper promotion. Welch urges affected individuals to connect with legal representatives while expressing her commitment to assisting the investigation. This incident highlights the challenges faced in the cryptocurrency market, particularly concerning the accountability of influencers and the volatility of memecoins.