The controversy surrounding the Hawk Tuah cryptocurrency escalated as investors filed a lawsuit against the creators of the ‘$HAWK Token’ after losing significant sums of money. Haliey Welch, the face of the viral “Hawk Tuah Girl,” is under scrutiny as the token’s value plummeted by nearly $450 million in less than 20 minutes. The lawsuit accuses the token’s developers of conducting a “rug pull,” a fraudulent practice where creators sell off their holdings, leaving the investors with worthless assets.
The lawsuit targets Tuah The Moon Foundation, OverHere Ltd., and its executive Clinton So, along with promoter Alex Larson Schultz, accusing them of promoting the coin without proper registration. Though Welch was not named in the lawsuit, critics argue her influence was instrumental in marketing the token, claiming her social media following was leveraged to foster trust and engagement.
Reddit users have speculated that Welch might become a scapegoat for the debacle. While some believe she was a willing participant, others suggest she may have been unaware of the intricacies of the cryptocurrency world. Welch has not publicly commented on the situation, though some investors hold her accountable for lending her name to the project.
The token’s collapse, which saw its value drop from $490 million to $41 million in a single day, has sparked debates about the ethics of celebrity endorsements in financial ventures. Legal proceedings are ongoing as affected investors seek accountability for their losses.
