Haliey Welch Denies HAWK Memecoin Creation in Lawsuit, Pledges Full Cooperation

Haliey Welch, the star of ‘Hawk Tuah’, has finally spoken up after a lawsuit was filed against her team on Thursday, regarding HAWK memecoin situation.

In a statement from her X account, she said she was very concerned and committed to addressing her fans, the affected investors, and the wider community.

She further emphasized her full cooperation with the legal team representing those affected and her commitment to the truth, accountability of those responsible, and resolution of the matter.

Haliey Welch Faces HAWK Memecoin Lawsuit, Denies Creation

In a tweet on Twitter/X, Welch expressed extreme concern for the situation at hand and her determination to make right the issues surrounding her project’s launch.

I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the…

— Haliey Welch (@HalieyWelchX) December 20, 2024

She emphasized that she is committed to seeing this through with her impacted fans, investors, and the community at large. Welch declared she is cooperating completely with the legal representatives for those affected. She also said she hopes to uncover the truth, holding those responsible accountable, and finding resolution.

Investors who lost $151,000 in the HAWK memecoin, have filed a lawsuit in the US District Court for the Southern District of New York.

HAWK Memecoin Crashes 95% After Launch, Investors Sue Creators for Fraud

The lawsuit alleges that the Hawk Tuah team failed to properly register the memecoin in accordance with law. The Cayman Island-based sellers and promoters have allegedly taken advantage of 22-year-old Welch. They mislead investors by touting the cryptocurrency as a registered security.

Complaint defendants include the Tuah The Moon Foundation, along with business partner overHere and its founder Clinton So. Representing the HAWK team is Alexander Larson Shultz who goes by “Doc Hollywood”. Shultz allegedly has ties to Canadian comic Howie Mandel. His role in the deceptive peddling of the coin was listed within the complaint.

Haliey Welch name was not in the lawsuit, but she has now decided to speak. In a post on X, Welch expressed her concern, stating: “I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. I am fully cooperating with and committed to assisting the legal team representing those impacted, as well as helping to uncover the truth, hold the responsible parties accountable, and resolve this matter.”

The HAWK meme coin quickly reached a market cap of almost $500 million in the minutes following its December 4th launch. However, it crashed 95% in minutes and caused significant losses for investors.

The lawsuit alleges that the team raised almost $2.8M in a presale at a valuation of $16.69M before launch.

OverHere Blames “Doc Hollywood” for Crypto Chaos

The day following that chaotic HAWK rollout, overHere founder So renamed the Tuah Foundation to be an offshore entity. He then dumped 17% of token supply via the foundation. Those early investors had sold most of their new shares as fast as they bought them.

Sellers continued to sell 83% of the remaining supply without disclosing to buyers that the tokens were outside the US jurisdiction. The lawsuit alleges the project was intentionally exploiting the American market.

“So interwoven did the success of social media influencer-type Welch with the HAWK Token, with a token holder essentially sharing the profits or becoming a shareholder, investors argue. “Yet and still, despite the explicit statements that it was, in fact, a security, Defendants failed to register the HAWK Token.

An overHere spokesperson said:

“We have been extremely transparent about the very limited scope and extent of our involvement in the Hawk Tuah token project. We are confident we did nothing wrong.”

In a withering attack on Shultz, overHere placed the blame squarely on Doc Hollywood for the crypto chaos. The company claimed it had no involvement in any wrongdoing. It accused Shultz of controlling all token and fee decisions. He aleegedly ignored calls for transparency, and failed to pay trading fees to the company.

OverHere said it worked for the HAWK project free of charge without any official contract. Doc’s silence has, on the other hand, cost the trust of the emerging Hawk Tuah community. The firm also dismissed Doc’s claims of 18 employees, saying it actually employs four developers.

The company stated:

“This project requires Haliey’s team to step up, Doc to step down, and a full treasury audit. Ready when you are, Haliey Welch.”