Haliey Welch’s crypto controversy is far from over … we’ve learned investors have sued those behind the launch after it infamously lost most of its value in one day.
In new court documents obtained … investors in Welch’s Memecoin, known as “$HAWK token,” have accused Tuah The Moon Foundation — an organization located in the Cayman Islands that collected money from the sale — creator OverHere Ltd., executive Clinton So, and promoter Alex Larson Schultz of unlawfully promoting and selling cryptocurrency that was allegedly never properly registered.
Welch, whose big success stems from her podcast Talk Tuah which is on betting platform, Betr, owned by Jake Paul and Joey Levy, herself is not directly named as a defendant in the suit.
Plaintiffs accuse those behind the whirlwind crypto sale of capitalizing on Welch’s celebrity status to create a “frenzy” … taking advantage of first-time cryptocurrency participants who faced substantial losses after the token’s value plummeted by more than 90% after a rapid rise.
However, the plaintiffs make a point to clarify that they are not accusing the crypto creators of fraud or reckless conduct … noting, instead, that they’re simply suing over the defendants’ alleged negligence in relations to the Securities Act.
They’re seeking damages of more than $150,000 … on top of whatever else the court may deem appropriate.
Welch first faced criticism surrounding the disastrous launch earlier this month, when the currency reached a peak value of $490 million … before nosediving in value within hours. At the time, critics accused Welch and her team of participating in a pump-and-dump scheme, which she promptly denied.
Amid the backlash, Welch took to X and said her “team hasn’t sold one token.”
https://twitter.com/HalieyWelchX/status/1864448384326881713
She added … “We tried to stop snipers as best we could through high fee’s in the start of launch on.”
We’ve reached out to Welch’s rep for comment … so far, no word back.
