Investors have filed a lawsuit against the creators and promoters of the memecoin Hawk Tuah (HAWK), claiming that its launch involved the illegal sale of unregistered securities.
suit, It was submitted on December 19, 2024targets several key figures and entities, including the Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz, who Accused To promote the token to potential investors.
The legal complaint claims that HAWK’s pre-launch marketing made it nothing more than just another speculative cryptocurrency asset.
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Hook Mimiquin It was filmed As a cultural movement
Prosecutors allege it was portrayed as a cultural movement with strong growth potential, leveraging the influence of social media personality Haley Welch.
The recording claims so Welch Her reputation as a public figure gave the project an air of legitimacy, and encouraged her followers to invest.
The HAWK memecoin has seen a rapid rise after its launch on December 4th. Its initial value was $16.6 million Token The market value rose to $491 million within hours.
However, the euphoria did not last long coins The value decreased by more than 90%, reaching only $41.7 million. This sharp decline sparked accusations of A “Pump and dump” A scheme, as angry investors take to social media to express their frustration.
Some investors have since filed complaints with the US Securities and Exchange Commission (SEC), urging other affected parties to do the same.
Haley Welch, a central figure in the controversy, has denied any allegations of insider trading, maintaining that neither she nor her team were involved in any illegal activity.
Blockchain Data company bubble maps It shows higher than An estimated 80% of all wallets and snipers were under the control of insiders, leading to misrepresentation. Token value.
“WWe tried to stop the snipers as much as we could expenses in Launching on @MeteoraAG,” Welch said in a Thursday post. “expenses It has now been dropped“.
Copy and paste:
Hakanomics:
The team did not sell a single token and not 1 KOL was given away a single free token
We tried to stop the snipers as best we could with the high fees at the start of the launch @MeteoraAG
The fees have now been dropped pic.twitter.com/E7xN9VmCrx
-Haliey Welch (@HalieyWelchX) December 4, 2024
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Covisella defends Welsh’s team
Notable YouTuber “COVIZELLA“ He also weighed it, and declined Pull the rug allegations. He said that early token sales of “Strategic consultants” It was part of the business model, not an exit scam. He also rejected the allegations That Welch It made $50 million from the token launch.
According to Coffeezilla, Team HAWK “Already sold a few million” Tokens strategic advisors allegedly sold early, contributing to Token Volatility.
He explained that “The specified amount” The money generated is still unknown but noticeable Welch The lawyer reported that she received $125,000, with her codes locked for a year. Coffeezilla also highlighted this It remains unclear Where the proceeds from transaction fees and pre-sale went.
There’s a lot to criticize here, and I do, but let’s stick with what we know.
The team made a few million. (Exact amount unknown)
According to Hawke’s lawyer, she saw $125,000 and her tokens unlocked within a year.
Where the fees and pre-sale profits go is currently unknown.
– Coffeebreak (@coffeebreak_YT) December 6, 2024
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