The team behind Hawk, a meme coin tied to internet celebrity Haley “Hawk to Girl” Welch, has been sued by a group of investors for allegedly violating securities laws.
the block report A lawsuit filed last week in New York District Court alleges that the meme coin Hawk, which gained popularity due to its association with internet sensation Haley “Hawk to a Girl” Welch, functions as an unregistered security and is a virtual currency. It is claimed that it caused significant economic damage. investors. This lawsuit comes after a significant drop in coin prices wiped out many people foolish enough to invest in her coins.
The complaint, brought by 12 plaintiffs who collectively lost more than $151,000 investing in HAWK, alleges that the token exhibits all the characteristics of an unregistered security based on established legal precedent. , is seeking a jury trial.
According to court documents, HAWK acted like an unregistered security by first attracting crypto investors, but subsequently suffered significant losses as the value of its tokens declined. Plaintiffs allege that a common business existed with respect to the token because the pooling of funds and the token's success were tied to the joint efforts of Ms. Welch and her project team.
The complaint also states that the marketing efforts surrounding HAWK gave investors a reasonable expectation of return, and that the token's success was largely dependent on the efforts of Welch and her team.
“Despite these clear indicators of its status as a security, the $HAWK token was not registered by Defendants,” the complaint alleges. Additionally, the plaintiffs allege that a wallet managed by the Tua Foundation, an entity associated with the project, collected $3 million in token transaction fees.
Hayley Welch, also known as the “Hawk Tua Girl,” quickly gained popularity in June 2024 after responding to street interviews that included the phrase “Hawk Tua.” Web3 launchpad platform OverHere facilitated the launch of HAWK on the Solana blockchain on December 4th. The token's value soared, reaching a market cap of around $400 million, but has since plummeted 90%.
Welch disappeared from social media following the dramatic drop in memecoin prices, but resurfaced after the lawsuit was filed, saying he was taking the situation “extremely seriously.”
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues.
