Hailey Welch, known on social media as the “Hawk Tuah Girl”, is at the center of a major controversy after her cryptocurrency, Hawk Tuah (HAWK), experienced a 95% drop in value in just a few days. Welch, who gained fame through her podcast “Talk Tuah”, has been absent from the public eye for the past two weeks, raising concerns among her followers and investors. The drastic drop in the value of the cryptocurrency has sparked reactions and doubts about the future of the project.
Welch’s last communication with her audience was a brief message stating she was “going to sleep.” However, shortly after, the value of Hawk Tuah collapsed unexpectedly, resulting in millions of dollars in losses for investors, many of whom were new to the cryptocurrency world. This sudden crash has led several affected investors to file legal action with Burwick Law against Welch and the entities associated with the project
Lawsuit For Fraud and Market Manipulation
A group of affected investors has filed a lawsuit against Hailey Welch, the Tuah The Moon Foundation, OverHere Ltd., its executive Clinton So, and cryptocurrency promoter Alex Larson Schultz. The main accusation is that these individuals orchestrated a fraud known in the crypto world as a “rug pull,” involving the swift withdrawal of funds by the creators of the project, leaving investors with nothing.
The lawsuit claims that the “illegal promotion and sale” of the Hawk Tuah token caused significant financial losses. According to legal documents, many investors were attracted to the project by Welch’s influence, as she actively promoted the token across her social media platforms. This led to a massive buying spree that collapsed within hours, leaving investors with massive losses.
The situation is further complicated by allegations of insider trading. Well-known cryptocurrency investigator Coffeezilla accused the Hawk Tuah team of manipulating the market and conducting internal trades to profit from the token’s value drop.
After its launch in December, Hawk Tuah’s value reached a market capitalization of $500 million, only to drop by 88% within minutes, raising suspicions of a coordinated mass sell-off by major investors.
This case highlights the risks of investing in unregulated cryptocurrencies and the vulnerability of new participants in this volatile market, especially when projects rely on influential figures without a solid foundation.
