Investors who lost money after investing in a memecoin created by Hailey Welch, known as the Hawk Tuah girl, have filed a lawsuit against her. The memecoin named $HAWK was released on December 4 but quickly lost more than 95% of its value, leading to financial losses for many investors. The lawsuit alleges that the unlawful promotion and sale of the Hawk Tuah cryptocurrency memecoin on Welch’s podcast caused this financial downfall.
The lawsuit names several entities, including the Tuah The Moon Foundation, OverHere Ltd, and its executive Clinton So, and the meme coin’s Los Angeles-based promoter Alex Larson Schultz. It claims that aggressive promotional campaigns for the token caused a spike in market value followed by a sudden nosedive, leaving investors in a precarious financial situation. Many investors, including first-time cryptocurrency participants, were influenced to invest in the token solely because of Hailey Welch’s celebrity status and social media following.
In response, Hailey Welch’s team has shifted blame onto Alex Larson Schultz, also known as Doc Hollywood, claiming that he controlled all token decisions, fees, and treasury. The team alleges that Schultz’s actions led to high trading fees, lack of communication during market chaos, and a lack of transparency, ultimately causing the financial losses experienced by investors. The lawsuit highlights the risks associated with celebrity endorsements in the cryptocurrency space and the importance of due diligence before investing in such volatile assets.
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Photo credit timesofindia.indiatimes.com
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