"Hawk Tuah" Star Faces Lawsuit Over $325K Meme Coin Designed to Fail

"Hawk Tuah" Star Faces Lawsuit Over $325K Meme Coin Designed to Fail — Can Holders Recover?

Influencer Haliey Welch, known as the viral "Hawk Tuah" girl, is facing a lawsuit connected to the collapse of the $HAWK meme coin. The legal team argues that she played a significant role in promoting the token, designed to fail shortly after launch. This case raises questions about the responsibilities of influencers in crypto marketing.

Key Takeaways

Haliey Welch, a prominent influencer, is now a defendant in a federal class-action lawsuit related to the collapse of the $HAWK meme coin.
Allegations suggest that Welch and her management team earned up to $325,000 promoting a token designed to crash.
The launch of the HAWK token saw a rapid rise to $490 million in market cap, followed by a swift decline of 93%.
The lawsuit draws parallels between the $HAWK failure and other notable meme coin collapses, such as LIBRA and TRUMP token.
Welch claims she was a paid promoter with no knowledge of the project’s operations, while federal investigations have not found her culpable.

Hawk Tuah Star Sued Over $325K Meme Coin Designed to Crash — Will Holders Recover?

Main Content

Haliey Welch, the influencer famously known as the "Hawk Tuah" girl, is now embroiled in a new legal issue. A crypto law firm has added her name to an expanding federal class-action lawsuit linked with the disastrous collapse of the $HAWK meme coin last year.

According to a recent filing in the Eastern District of New York, both Welch and her manager, Johnnie Forster, along with their company, 16 Minutes LLC, are accused of playing a crucial role in promoting a token that was allegedly “designed to crash within minutes.” This setup allowed insiders to sell their tokens during the initial frenzy and take home significant profits.

Welch's Role in the HAWK Token Collapse

Burwick Law, the legal firm heading the suit, initially did not include Welch. However, they now argue that new evidence indicates she made up to $325,000 for her promotional efforts and was a “key component” of a coordinated effort that attracted retail investors who trusted her image.

The amended complaint states that Welch accepted a $125,000 upfront payment, with an additional $200,000 linked to specific promotional goals. This was part of a “Meme Token Creation and Monetization Agreement” with Memetic Labs, which was signed five months prior to the token's launch.

The document claims that these payments shifted Welch's role from a mere sponsor to a vital part of the token’s marketing strategy, despite the project reportedly making promises it could not keep.

Welch gained widespread attention in 2024 due to a viral street interview and later established the Talk Tuah podcast. She promoted HAWK as a cultural token that would connect with her show and offer subscription-style benefits, which the lawsuit asserts were never realistically achievable.

The Solana-based token experienced a meteoric yet brief launch, reaching a market cap of $490 million in under 15 minutes before tanking by 93% soon after.

The complaint argues this failure was not due to poor management but rather a system engineered for quick value extraction. Blockchain analysis links insider wallets to other suspicious activities, including various previous rug pulls like LIBRA, M3M3, AIAI, and the TRUMP token.

The Ongoing Allegations Against Welch

In addition to Welch, others implicated in the fraud allegations include Memetic Labs, OverHere Limited, Clinton So, Alex “Doc Hollywood” Schultz, the Tuah Foundation, and several interconnected wallet entities.

Although Welch is not facing charges related to securities violations or false advertising, the lawsuit suggests she financially profited from a scheme that preyed on inexperienced investors.

This latest case draws comparisons to other notorious meme token failures. For example, LIBRA, endorsed by Argentine President Javier Milei, collapsed just hours after its launch and is now under investigation, although the anti-corruption board cleared Milei of any wrongdoing. Similarly, earlier in the year, TRUMP, a Solana token branded with Donald Trump’s name, also crashed shortly after its debut. Burwick Law claims these projects exhibit similar patterns of on-chain behavior and insider trading.

Welch’s association with HAWK has been fraught since the token’s fall. At the time of the crash, she issued a public apology and asserted that she was “fully cooperating” with the legal team representing affected investors. Her legal counsel maintains that she acted solely as a paid promoter without any insight into the technical or financial aspects of the project.

In subsequent interviews, Welch mentioned being questioned by federal agents, who briefly confiscated her phone during their investigation. Ultimately, the U.S. Securities and Exchange Commission found no wrongdoing on her part, leaving Welch feeling regretful for any unintentional misguidance to her viewers.

The renewed efforts to include her in the lawsuit represent a pivotal shift since investors first filed their grievances in December 2024, reporting losses exceeding $151,000 from the HAWK token’s crash.