Haliey Welch’s $HAWK Token Drama Heats Up After Investors File Lawsuit Over Crypto Crash

Haliey Welch’s crypto venture has landed her in the middle of a legal storm as investors take action over the disastrous launch of the $HAWK token.

Court documents obtained by TMZ reveal that those behind the cryptocurrency, including the Tuah The Moon Foundation, creator OverHere Ltd., executive Clinton So, and promoter Alex Larson Schultz, are being sued for allegedly failing to properly register the token under securities laws.

While Welch herself isn’t named as a defendant, plaintiffs claim her celebrity status was used to drum up hype for the token, which skyrocketed before crashing by over 90% in mere hours. Investors are calling out the parties involved for negligence under the Securities Act but stop short of alleging fraud or reckless behavior.

The $HAWK token debuted earlier this month and hit a peak valuation of $490 million before its value plummeted, leaving many first-time crypto buyers reeling from substantial losses. Critics labeled the situation a “pump-and-dump” scheme, though Welch has fiercely denied any wrongdoing. “My team hasn’t sold one token,” she tweeted, addressing allegations of foul play and claiming her team implemented high fees at launch to deter bad actors.

Investors are now seeking over $150,000 in damages and any other compensation the court deems appropriate.

As Welch continues to face backlash, the question remains: Was this a case of negligence, or did investors simply bet on the wrong coin? Only time will tell.

What do you think about the $HAWK token controversy? Did the creators fail their due diligence, or is this just the risk of playing in the crypto game? Share your thoughts in the comments below!