Investors who lost money after investing in the memecoin created by social media personality Hailey Welch, also known as the Hawk Tuah Girl, have filed a lawsuit against her. The $HAWK memecoin, released on December 4, quickly lost over 95% of its value, leading to financial losses for many. The lawsuit alleges that the coin’s unlawful promotion and sale on Welch’s podcast caused the market value to spike and then crash, leaving investors devastated. The lawsuit names Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz as defendants in the case.
The filing claims that aggressive promotional campaigns and promises of future growth created a speculative frenzy around the token, leveraging Welch’s celebrity status to attract investors. Many first-time cryptocurrency participants were drawn to the memecoin solely because of Welch’s endorsement. In response, Welch’s team has shifted the blame to Alex Larson Schultz, also known as Doc Hollywood, accusing him of making all token decisions and handling the fees and treasury. They claim that Schultz’s team disappeared when faced with challenges, failing to deliver on promises made to the community.
The lawsuit highlights the risks associated with investing in meme cryptocurrencies and the importance of conducting thorough research before putting money into such volatile assets. Investors are reminded to be cautious of celebrity endorsements and aggressive marketing campaigns when considering cryptocurrency investments. As the legal battle unfolds, the outcome will shed light on the responsibilities of influencers and creators in promoting digital assets to their followers.
Source
Photo credit timesofindia.indiatimes.com
