Hawk Tuah Memecoin Creators, Including Hailey Welch, Sued for Rug Pull Allegations After 95% Value Crash, Investors Claim $151K Losses

Dec 19, 2024, 05:36 PM

A federal lawsuit has been filed against the creators and promoters of the Hawk Tuah memecoin, including influencer Hailey Welch, following a dramatic decline in the coin's value. The memecoin, launched on the Solana blockchain, lost over 95% of its value within hours of its debut, prompting investors to take legal action. The lawsuit alleges that the promotion and sale of the $HAWK token constituted unlawful practices, including the failure to register the coin as a security with the U.S. Securities and Exchange Commission (SEC). Investors claim they suffered substantial losses, amounting to approximately $151,250, due to misleading marketing and the alleged 'rug pull' scheme. The legal action highlights increasing scrutiny on cryptocurrency influencers and the potential risks associated with investing in meme coins.