Investors have filed a lawsuit against the creators and promoters of memecoin Hawk Tuah (HAWK), alleging that its launch involved the illegal sale of unregistered securities.
The trial, filed on December 19, 2024targets several key figures and entities, including the Tuah The Moon Foundation, OverHere Ltd, Clinton So and Alex Larson Schultz, who are accused to promote the token to potential investors.
The legal complaint claims that HAWK’s pre-launch marketing presented it as more than just a speculative crypto asset.
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HAWK Memecoin Was represented As a cultural movement
The plaintiffs say it has been portrayed as a cultural movement with strong growth potential, leveraging the influence of social media personality Haliey Welch.
The filing alleges that Welch his reputation as a public figure gave the project an air of legitimacy, encouraging his supporters to invest.
The HAWK memecoin saw a meteoric rise after its launch on December 4. Initially valued at $16.6 million, the the tokens the market capitalization soared to $491 million in a matter of hours.
However, the euphoria was short-lived since pieces the value dropped more than 90%, leaving it at just $41.7 million. This sharp decline sparked accusations of “pump and dump» project, with angry investors taking to social media to express their frustration.
Some investors have since filed complaints with the U.S. Securities and Exchange Commission (SEC), urging other affected parties to do the same.
Haliey Welch, a central figure in the controversy, has denied any allegations of insider trading, saying neither she nor her team engaged in illegal activities.
Blockchain data company Bubble Maps shows that above an estimated 80% of all wallets and snipers were controlled by insiders, thus distorting the picture. the tokens value.
“WWe tried to stop the snipers as best we could costs In the start of the launch on @MeteoraAG,» Welch said in a Thursday X article. “Costs have now been abandoned.”
Copy and paste:
Hawkanomy:
The team did not sell a single token and no KOL received a free token
We tried to stop the snipers as best we could through high fees at the start of the launch on @MeteoraAG
Fees have now been removed pic.twitter.com/E7xN9VmCrx
– Haliey Welch (@HalieyWelchX) December 4, 2024
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Coffeezilla defends Team Welch
Prominent YouTuber “Cafezilla“ also weighed in, rejecting the pull the rug allegations. He argued that the first token sales to “strategic advisors» were part of the business model and not an exit scam. He also rejected the allegations this Welch earned $50 million from the token launch.
According to Coffeezilla, the HAWK team “presold a few million» tokens to strategic advisors who would have sold early, thus contributing to the the tokens volatility.
He clarified that the “exact amount» funds generated is still unknown but noted Welch The lawyer said she was paid $125,000 and her tokens were locked for a year. Coffeezilla also pointed out that it remains unclear where the proceeds from transaction fees and pre-sales went.
There’s a lot to criticize here and me, but let’s stick with what we know.
The team made a few million. (Exact amount unknown)
According to Hawk’s lawyer, she saw $125,000 and her chips released within a year.
It is currently unclear where the profits from fees and pre-sales go.
– Cafézilla (@coffeebreak_YT) December 6, 2024
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The post Investors Sue Entities Behind HAWK Memecoin, Alleging Unregistered Securities Offering appeared first on 99Bitcoins.
