Lawsuit Against HAWK Team for Alleged Securities Violations
The team behind the memecoin HAWK, associated with Haliey Welch or "Hawk Tuah Girl," faces a lawsuit from investors claiming securities law violations, as indicated by court documents.
A complaint filed Thursday in a District Court of New York asserts that HAWK functioned as an unregistered security, luring novice cryptocurrency investors who suffered significant losses following the token's decline. Twelve plaintiffs, who collectively lost $151,000 in their HAWK investments, are seeking a jury trial.
The complaint states, "The $HAWK Token exhibits all the characteristics of an unregistered security under established legal precedent," highlighting a common enterprise due to the pooling of funds and the token’s success being dependent on the collective efforts of Welch. The marketing strategies surrounding HAWK reportedly created a "reasonable expectation of profits," relying on the project team's performance.
According to the complaint, despite clear signs of being classified as a security, the Defendants did not register the $HAWK Token. Furthermore, it alleges that a wallet managed by the Tuah Foundation amassed $3 million from token transaction fees.
Welch gained popularity for her viral response in a street interview that included the phrase "hawk tuah" in June 2024. The web3 launchpad platform OverHere facilitated HAWK's launch on December 4 on Solana. The token initially surged to a market cap of $400 million before plummeting by 90%.
The Block reached out to OverHere for comment.
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