Haliey Welch has addressed the situation following a class action lawsuit filed by Burwick Law.
The internet star, known as ‘Hawk Tuah Girl’, reacted after the lawsuit was initiated regarding the downfall of her ‘memecoin’ cryptocurrency, $HAWK.
This coin debuted earlier this month and initially gained traction among Welch’s supporters. However, just 20 minutes post-launch, its value nosedived from around $490 million to a mere $41 million.
This drastic decline sparked outrage among her fans, with one individual expressing their frustration online, stating: “I’m a big fan of Hawk Tuah, but you’ve taken my life savings. I invested in your $Hawk coin, which you were so enthusiastic about, using my life savings and my kids’ college fund.”
Welch first addressed the criticism on December 6, defending the coin’s launch by sharing a message with her Twitter followers.
“Hawkanomics: The team hasn’t sold a single token, and not one key opinion leader received a free token,” the message stated.
“We did our best to prevent snipers by implementing high fees at the start of the launch on @MeteoraAG. Those fees have now been reduced.”
However, after two weeks of radio silence from the influencer, investors who lost money are now taking legal action.
A document submitted on behalf of the investors noted that the lawsuit “stems from the illegal promotion and sale of the Hawk Tuah cryptocurrency memecoin, known as the ‘$HAWK’ token, which the defendants offered and sold to the public without the necessary registration.”
While the lawsuit doesn’t directly name Welch, it claims her social media presence was leveraged to promote the coin by defendants including Tuah The Moon Foundation, which managed the memecoin’s finances; OverHere Ltd, the coin’s creator; Clinton So, an executive at OverHere; and the promoter Alex Larson Schultz.
Welch reacted to the lawsuit news by reaching out to her fans and those who invested in the cryptocurrency. She tweeted, “I’m taking this situation very seriously and want to connect with my fans, the investors affected, and the wider community.
I’m fully on board with the legal team helping those impacted, and I’m dedicated to finding the truth, holding the right people accountable, and sorting this out. If you’ve faced any losses because of this, please get in touch with Burwick Law through the link below: https://www.burwick.law/newclient.”