The ill-fated Hawk Tuah memecoin creators are now facing a federal lawsuit, filed on December 19, 2024, by a group of disgruntled investors who claim they've collectively lost over $151,000.

For those who've been living under a rock (or maybe just avoiding the crypto drama), the Hawk Tuah meme coin, known as $HAWK, was launched on December 4, 2024, with much fanfare. 

It was fronted by none other than Haliey Welch, the viral sensation who gained fame as the "Hawk Tuah girl" after a memorable interview about, ahem, intimate techniques. 

Who knew that would lead to a cryptocurrency? Well, some peeps decided it was a perfect memecoin material, and that was how the $HAWK token meme came to life. Within a mere 15 minutes of its debut, the token's market cap skyrocketed to a jaw-dropping $490 million.

But as they say, what goes up must come down—and boy, did it come down hard. The value plummeted by over 93%, leaving investors shell-shocked and wallets significantly lighter.

Now, you might be wondering, "Where's Haliey in all this mess?" Well, interestingly enough, Ms. Welch isn't named as a defendant in the lawsuit. On the day of the token's launch, when angry investors and spectators were demanding answers, Haliey decided it was bedtime and hasn't posted on social media since.

The lawsuit, filed by the legal firm Burwick Law, names four defendants: Alex Larson Schultz (aka "Doc Hollywood"), OverHere Limited, Clinton So, and Tuah the Moon Foundation. These are the folks allegedly behind the scenes.

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Investor lawsuit against Hawk Tuah creators. Source: PACER

Max Burwick, the attorney leading the charge, stated that the case "underscores a troubling pattern in the crypto space: the targeted exploitation of celebrity and public figures' names to generate profit, often at the expense of everyday people."

The plaintiffs argue that the $HAWK token has all the hallmarks of an unregistered security. They claim the pre-launch marketing framed the token as more than just a speculative asset, portraying it as a "cultural movement with significant growth potential". Well, it certainly moved—right off a financial cliff.

In the aftermath of the crash, fingers have been pointing in all directions. OverHere, one of the defendants, broke their silence on December 18, claiming they made zero profit and worked purely on a contractual basis. They threw some shade at Doc Hollywood, alleging he didn't pull his weight despite controlling "all token decisions, fees, [and the] treasury."

Meanwhile, popular YouTuber "Coffeezilla" tried to dispel some of the wilder rumors swirling around the internet. He argued that the launch wasn't a classic "rug pull" but rather a case of "strategic advisers" offloading millions of pre-sold tokens early. 

So, not a rug pull, just a strategic retreat? Potato, potahto.

As for Haliey Welch, her team has remained tight-lipped, not responding to requests for comment on the lawsuit. Perhaps she's still catching up on that beauty sleep? Or maybe she's busy preparing her defense strategy—after all, Burwick Law mentioned they're "engaged in discussions" with Welch's counsel.

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