- Hailey Welch has been cooperating with legal teams investigating alleged fraud in a HAWK memecoin project
- Investors have sued the developers of the memecoin, accusing them of running a “pump-and-dump” scheme
- Welch has voiced her commitment to uncovering the truth and assisting those impacted by the project
Hailey Welch, known for her viral internet fame, has found herself entangled in a legal controversy surrounding her failed memecoin project, Hawkcoin. Welch is said to be cooperating with legal teams representing investors who have sued the project’s developers, accusing them of a coordinated pump-and-dump scheme. Welch tweeted to say that she is taking the situation “extremely seriously” in order to “help uncover the truth, hold the responsible parties accountable, and resolve this matter.”
Buyers Blame Creators for HAWK Collapse
Buyers of the project’s HAWK token filed a lawsuit last week against its creators, alleging that the project was a fraudulent pump-and-dump scheme designed to enrich the founders. According to the claims, the developers and their network of promoters misled investors into believing the coin had long-term potential. Once the coin’s value skyrocketed, insiders reportedly sold off their shares, causing the price to crash and leaving ordinary investors with significant losses.
Although Welch was not directly involved in creating or managing the cryptocurrency, she promoted it on social media, amplifying its reach among her followers. Critics have argued that influencers like Welch inadvertently contributed to the hype that drew people into investing. Welch, however, has distanced herself from the project, stating she was unaware of any fraudulent activities and has vowed to cooperate fully with investigators:
I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the…
— Haliey Welch (@HalieyWelchX) December 20, 2024
In a press release, Welch’s representatives outlined her desire to put the incident behind her and forge a media career.
Latest in a Long Line
Few people were surprised when the Hawkcoin creators were hit with a lawsuit following the memecoin’s collapse, with the pattern following other disastrous celebrity memecoin launches; in November, Caitlyn Jenner was sued over the collapse of her JENNER token.
The controversy has reignited discussions about the responsibilities of influencers in promoting financial products and the need for stronger oversight in the crypto world.
