In a stunning turn of events, Hailey Welch, the TikTok sensation known as “Hawk Tuah” girl, has broken her silence on the spectacular collapse of her eponymous cryptocurrency token, HAWK. The memecoin, launched on the Solana blockchain in early December, imploded almost immediately upon release amid allegations of insider profiteering at the expense of retail investors.
The implosion sparked a class-action lawsuit filed by Burwick Law on behalf of aggrieved investors, accusing HAWK’s creators of leveraging Welch’s internet fame to unlawfully peddle an unregistered security. In her first public statement since the debacle, Welch declared that she is “fully cooperating” with the plaintiff’s attorneys as they seek to “uncover the truth” and hold those responsible to account.
I take this situation extremely seriously. I’m committed to working with the lawyers representing those who lost money to get to the bottom of what happened.
– Hailey Welch, via Twitter
Anatomy of a Memecoin Rug Pull
The HAWK token debacle bears all the hallmarks of a textbook “rug pull” – a colloquial term in the crypto space for when a project’s developers abruptly abandon it and abscond with investor funds. On-chain sleuths allege that HAWK insiders siphoned off massive sums just as the token went live, leaving hapless buyers holding the bag as the price crashed to near-zero.
While the full scope of losses is still being tallied, the episode has reignited debate around the perils of memetic speculative frenzies and celebrity-promoted crypto schemes. With lawmakers and regulators already eyeing the nascent industry warily, some fear the blowup could accelerate a crackdown.
Welch’s Role Under Scrutiny
For her part, Welch has strenuously denied any foreknowledge of or involvement in alleged wrongdoing, insisting she merely lent her name and likeness to the project in exchange for a flat endorsement fee. But as the face of the erstwhile token and a key lure for its army of small-time buyers, experts say she could still face exposure.
- Legal liability for celebrity promoters of crypto is still an unsettled question, with several “A-list” stars currently embroiled in lawsuits over their past endorsements.
- Per securities laws, anyone who profits by touting an investment could potentially be on the hook for investor losses if that asset is later deemed to have been an unregistered security.
Lessons from a Failed Moonshot
While the final chapter has yet to be written in the sordid saga of HAWK coin, the episode offers some timeless cautionary lessons for investors:
- Exercise extreme caution with speculative memecoin gambles and celebrity-hyped crypto projects
- Look beyond the hype and research fundamentals – if it seems too good to be true, it probably is
- Don’t risk more than you can afford to lose and maintain a diversified portfolio
- If you suspect fraud, document everything and consult with a qualified attorney
As the wheels of justice begin to turn and the legal fallout unfolds, one thing is certain: the hard lessons of HAWK coin won’t soon be forgotten. For Hailey Welch and her erstwhile “Hawk Tuah” army, that cheap rocket to the moon turned out to be a pricey ticket to a hard landing in court.
