Investors File Lawsuit Over $HAWK Token Crash, Alleging Pump-and-Dump Scheme

Manoj Nair
Investors File Lawsuit Over $HAWK Token Crash, Alleging Pump-and-Dump Scheme

The rumours of investors who had lost their life earning by investing in the Hailey Welch’s Hawk Tuah cryptocoin planning to sue was in the air for some time.

However, the news has been confirmed and investors are indeed going to sue Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz for the failure of Solana-based meme coin, HAWK.

Investors have alleged that it was a pump-and-dump scam and have filed complaints with the U.S. Securities and Exchange Commission.

Investors Sue Over $HAWK Token Crash

For the unversed, the “$HAWK Token” was promoted by Hailey Welch better known as the as the Hawk Tuah girl who had launched a meme coin $Hawk.

However, the meme coin values surged phenomenally to hit $490 million when it was launched on December 4.

However, the values tanked even more dramatically to less than $91 million within the space of 30 minutes and eroded the hard-earned money of numerous investors.

The lawsuit filed against Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz alleged that the fame of Welch was used to promote the meme coin as a registered security.

The lawsuit was instituted by Cayman Island-based sellers and as per the media house, The Post investors have lost a whopping $151,000 by investing in the crypto coin.

The lawsuit has however not named Hailey Welch but has Alex Schultz, also known as Doc Hollywood as a defendant.

It was revealed by the crypto newspaper Bitcoin.com News that Shulz is the son–in–law of Howie Mandel who was the crypto advisor for Welsh and was the driving factor which led Welch to launch the meme coin.

Shulz was the main final arbitrator in all decisions pertaining to the crypto coin which included token decisions, fees, and treasury.

Alex Shulz also better known as Doc Hollywood, is a multifaceted personality who is also a DJ, music producer and song lyricist.

He started his music career in partnership with his friend Louie Rubio and produced music and hosted DJ Parties.

Among his best-known numbers include ‘We Run LA’ which went on to top the charts and was a regular feature on Ryan Seacrest’s Top 40 radio show.

The lawsuit pointed to serious irregularities and stated that post-launch of the $HAWK coin, the Tuah Foundation reportedly sold 17% of their tokens to groups to bypass securities law.

The lawsuit also alleged that the group promoted the remaining tokens which were a gargantuan 83% without ensuring that the purchases were made outside the US.

The lawsuit alleged that the whole project was designed to take advantage of the US market.

OverHere spokesperson has reacted to the lawsuit and stated to media house Bloomberg:

“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.”

Also Read: Hawk Tuah Girl’s $HAWK Memecoin Boomed And Tanked in 20 Mins: Is It A Rug Pull?

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