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| Foto:Hawk |
VISTORBELITUNG.COM,The story of the "Hawk Tuah Girl," Haliey Welch, and the subsequent cryptocurrency lawsuit is a cautionary tale that highlights the volatile nature of meme coins and the legal risks associated with celebrity endorsements in the crypto space. While the viral fame of her catchphrase was undeniable, her foray into the world of decentralized finance led to a chaotic and legally fraught situation.
The controversy began with the launch of a memecoin named $HAWK, a project that leveraged Haliey Welch's widespread internet fame. The token's launch was met with massive hype, and its value skyrocketed in a matter of minutes, reaching a market capitalization of hundreds of millions of dollars. However, this euphoria was short-lived. In an incredibly rapid and brutal crash, the token's value plummeted by over 90% within hours, leaving thousands of investors with significant losses.
In the wake of the crash, a group of investors who had collectively lost a substantial amount of money filed a lawsuit. The key detail of this lawsuit is that it did not name Haliey Welch as a defendant. Instead, the legal action was directed at the individuals and entities behind the coin's creation and promotion.
The defendants in the lawsuit included:
• Tuah The Moon Foundation: The entity responsible for handling the funds from the token's sale.
• OverHere Ltd. and its executives: The web3 development firm that facilitated the coin's launch.
• Other promoters: Individuals who, like Welch, used their influence to promote the token.
The core of the lawsuit's claims was that the $HAWK token was an unregistered security. The plaintiffs argued that the defendants, through aggressive promotional campaigns and leveraging Welch's celebrity status, created a "speculative frenzy" that led investors to believe they would profit from the coin. This, according to the lawsuit, violated federal securities laws, specifically by offering and selling a security to the public without proper registration with the U.S. Securities and Exchange Commission (SEC).
Haliey Welch's Legal Status
Despite being the public face of the project, Haliey Welch herself was not charged in the lawsuit. Her legal team stated that she had not sold any of her allocated tokens and that the vast majority of the funds from any potential sale would have gone to her non-crypto team.
Furthermore, Welch has stated that she was investigated by both the FBI and the SEC following the fiasco and was cleared of any wrongdoing. She has also expressed her frustration and disappointment, asserting that she trusted the wrong people and is now "totally done" with the world of memecoins.
A Cautionary Tale
The "Hawk Tuah" crypto incident serves as a stark reminder of the risks inherent in the memecoin market. It underscores several key points:
• Celebrity Endorsements: The case highlights the potential legal and reputational risks for influencers who endorse crypto projects, especially those without a clear utility or fundamental value.
• The "Unregistered Security" Argument: Regulators are increasingly scrutinizing crypto projects, especially those that resemble traditional securities, and the outcome of cases like this can set important legal precedents.
• The Volatility of Memecoins: The $HAWK project's swift rise and fall demonstrates how quickly value can be created and destroyed in a market driven by hype and speculation, leaving retail investors vulnerable to massive losses.
In the end, while Haliey Welch appears to have avoided direct legal trouble, the incident has left a lasting scar on her public image and serves as a powerful lesson for both influencers and investors in the ever-evolving world of cryptocurrency.