Hawk Tuah Meme Coin Project Faces Legal Action Over Alleged Rug Pull Scandal

A recent crypto project, Hawk Tuah, has found itself in hot water as investors have initiated legal proceedings against its creators due to an alleged rug pull that led to significant financial losses. The project, spearheaded by Haliey Welch, introduced the $Hawk crypto token in early December, attracting a global audience of eager investors.

However, the excitement surrounding the launch soon turned sour when suspicions arose that the team had executed a rug pull, causing investors to suffer substantial losses. The situation garnered attention from prominent figures like YouTube crypto investigator Coffeezilla, who criticized the project's launch as one of the worst he had witnessed.

Coffeezilla highlighted the disparity between the substantial fees generated by the project, exceeding $1 million, and the losses incurred by supporters who fell victim to the alleged rug pull. He also pointed out instances of insider trading associated with the project, tarnishing its reputation further.

Newsweek reported on December 19 that aggrieved investors had taken legal action against the individuals and entities linked to the Hawk Tuah project. The lawsuit alleges that the promotion and sale of the Hawk Tuah cryptocurrency meme coin, known as the "$HAWK" token, were conducted unlawfully without proper registration.

The lawsuit specifically names Overhere Ltd, the company behind the coin, along with its executive Clinton So and promoter Alex Larson Schultz. Interestingly, Haliey Welch, the face of the project, is not directly implicated in the legal proceedings.

Legal representatives involved in the case asserted that the project's marketing tactics created a speculative frenzy, artificially inflating the Token's market value post-launch and leading to a substantial market capitalization. The lawsuit claims that the project capitalized on Welch's celebrity status and connections to enhance its credibility, even leveraging her podcasts with notable guests to promote the $HAWK token.

Many investors, particularly those new to the cryptocurrency space, were lured into the project by Welch's involvement, only to suffer significant financial losses when the Token's value plummeted. The lawsuit contends that investors relied on Welch's endorsement and the project's roadmap, which ultimately failed to deliver on its promises.