Hawk Tuah girl sued as HAWK token collapse
“Hawk Tuah” girl high-stakes lawsuit.
Hailey Welch, widely known as the “Hawk Tuah” girl following her viral online interview, is now at the center of a high-stakes lawsuit.
Investors have filed a complaint against Welch, the Tuah The Moon Foundation, OverHere Ltd., and key executives Clinton So and Alex Larson Schultz, over the catastrophic collapse of the $HAWK token, according to the Cryptopolitan.
Court filings, obtained by media outlets like TMZ, claim that the defendants unlawfully promoted and sold the token without proper registration.
The token’s market cap soared to $490 million before plummeting 93% in a single day, triggering allegations of a “rug pull” — a term used to describe a crypto scheme where creators drain liquidity from the project, leaving investors with worthless assets.
Allegations of Mismanagement and Unlawful Promotion
The lawsuit alleges that 96% of the token’s supply was controlled by a network of interconnected wallets, some of which reportedly dumped their holdings during the collapse. Investors claim this orchestrated exit sparked the sudden price decline, causing massive financial losses.
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While plaintiffs do not accuse Welch and her co-defendants of fraud, they argue that the team’s incompetence violated securities laws. The complaint seeks over $150,000 in damages, though the amount could rise depending on the court’s judgment.
In response to the backlash, Welch defended her actions on X (formerly Twitter), stating, “My team hasn’t sold one token.” She also claimed efforts were made to block “snipers” — bots programmed to exploit token launches.
The lawsuit’s outcome remains uncertain, but with plaintiffs pushing for a jury trial, Welch and her co-defendants face mounting pressure. If summary judgment is not granted, pretrial proceedings will commence, with damages to be decided by the jury.
To address the growing outrage, Welch and her team hosted a Twitter Space called The Hawk Truth. However, their denial of wrongdoing and lack of transparency about HAWK centralized supply left many listeners unconvinced.
