- According to a complaint, cryptocurrency investors were harmed by the memecoin HAWK’s actions as an unregistered security.
- Twelve plaintiffs who lost more than $151,000 in total as a result of their investments in HAWK filed the complaint and asked for a jury trial.
Investors have sued the group that created the memecoin HAWK, which is associated with Haliey Welch or “Hawk Tuah Girl,” for allegedly breaking securities laws.
HAWK allegedly acted as an unregistered security, attracting novice cryptocurrency investors who later suffered “substantial damages” as a result of the token’s collapse, according to the complaint submitted Thursday in a District Court of New York. The complaint was filed by twelve plaintiffs who lost a total of $151,000 due to their investments in HAWK and requested a jury trial.
Given the pooling of cash and the fact that the success of the token was attributed to Welch’s combined efforts, the $HAWK Token demonstrates all the qualities of an unregistered securities under established legal precedent. Furthermore, the plaintiffs said that the success of the token depended on Welch and her project team’s work, and that marketing efforts related to HAWK provided a “reasonable expectation of profits.”
The $HAWK Token was not registered by the defendants in spite of these unmistakable signs that it was a security. In addition, it claims that $3 million was taken from token transaction fees in a wallet the Tuah Foundation controls.
In a June 2024 street interview, Welch’s response—which included the term “hawk tuah”—became virally popular. HAWK’s December 4 launch on Solana was made possible by the web3 launchpad platform OverHere. Before plummeting 90%, the token’s market valuation soared to over $400 million.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
