Hailey Welch, also known as “Hawk Tuah Girl,” has finally spoken after a class-action lawsuit was filed over the collapse of the $HAWK token. Investors said they lost a lot of money after the coin’s value fell sharply right after it was launched. The lawsuit, filed on December 19, goes after the project’s creators and promoters, saying they did a “rug pull” and were dishonest.
The $HAWK token launched on December 4, initially received an overwhelming amount of support from Welch’s followers. This brought the coin to a market cap of $490 million at its peak. The coin’s value fell 20 minutes right after launch in a rapid decline to $41 million. With this sudden fall, holders accused the project’s authors of dumping large amounts of the coin into the market, causing its price to drop.
In response to the suit, Welch said in a statement shared on Twitter: “I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community.”
She assured her followers that she is working with the legal teams to understand what happened and assist in rectifying the situation. Welch also encouraged affected investors to reach out to the law firms involved in the lawsuit.
The lawsuit does not mention Welch’s name, though it targets the Tuah The Moon Foundation, OverHere Ltd., and Alex Larson Schultz, one of the key promoters of $HAWK. According to the lawsuit, $HAWK token was sold to the public without proper registration, which violated U.S. securities laws. It also accuses the promoters of using Welch’s celebrity status to sell the coin, thus leading to investors being duped.
The $HAWK presale brought in almost $2.8 million according to the court filings. When the token went live, its value was initially $16.69 million. Soon, most of the available supply of the token was sold, plummeting the price of the coin.
Welch’s spokesperson said she wasn’t in charge of the project. The spokesperson added that Welch received only a starting sponsorship fee and had no say in how the coin worked. “She had no control over the project,” the spokesperson stated.
Also Read: Hawk Tuah Girl: The Internet Enchantress Who Just Scammed You
