HAWK Memecoin Lawsuit

The team behind the memecoin HAWK, associated with Haliey Welch or “Hawk Tuah Girl,” has been sued by investors for alleged securities law violations, as stated in court documents.

The complaint, filed in a District Court of New York on Thursday, claims that HAWK functioned as an unregistered security, attracting first-time cryptocurrency investors who later suffered “substantial damages” due to the token’s decline. Twelve plaintiffs, who collectively lost $151,000, have brought forward the complaint and requested a jury trial.

The complaint argues, “The $HAWK Token exhibits all the characteristics of an unregistered security under established legal precedent,” pointing to a common enterprise created by the pooling of funds and the token’s success being tied to the collective efforts of Welch. Marketing efforts surrounding HAWK led to a reasonable expectation of profits, the plaintiffs argue, emphasizing the project team’s reliance on Welch’s efforts for its success.

Despite these indications of its status as a security, the complaint states that the $HAWK Token was not registered by the defendants. Additionally, it claims a wallet controlled by the Tuah Foundation collected $3 million from token transaction fees.

Welch gained viral fame for her phrase “hawk tuah” during a June 2024 street interview. The launchpad platform OverHere facilitated HAWK’s launch on December 4 on Solana, where the token surged to a market capitalization of around $400 million before experiencing a 90% decline, as previously reported by The Block.

An OverHere spokesperson told The Block in an email, “We have been extremely transparent about the limited scope and extent of our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong. As for any litigation, we will let the process play out in court.”

Update (Dec. 20, 15:47 UTC): Includes comment from OverHere Limited.