Investors Sue Hailey Welch Over Alleged Memecoin Fraud The fallout from the rapid decline in the Hawk Tuah token has been swift, with disappointed investors taking legal action against Welch and several associated entities. The lawsuit, filed on behalf of affected investors, accuses Welch, the Tuah The Moon Foundation, OverHere Ltd., its executive Clinton So, and coin promoter Alex Larson Schultz of orchestrating a fraudulent “rug pull.” Related Reading: Interest Rate Cut Impact: Bitcoin Price Reaction Unraveled With Future Projections According to court documents obtained by Newsweek, the complaint alleges that the "unlawful promotion and sale” of the Hawk Tuah memecoin resulted in significant financial losses, particularly impacting those new to cryptocurrency investing.
Insider Trading Allegations Bitcoinist reported two weeks ago that on-chain investigator Coffeezilla accused Hailey Welch and the Hawk Tuah team of scamming investors following the token’s launch. On November 26, Welch had announced her partnership with the Web3 platform OverHere to launch the Hawk Tuah memecoin, claiming it would “set to redefine the crypto space.” Upon its launch on December 4, the token’s market capitalization skyrocketed to $500 million, only to plummet 88% within minutes as major holders rapidly sold off their assets.
Related Reading: Ethereum To Outpace Solana In 2025, Bitwise CIO Asserts In the wake of the backlash, Welch revealed the token’s "Hawkanomics,” which indicated that only 2% of the total supply was allocated for public distribution, while 17% was designated for a "strategic allocation” that was fully unlocked at launch and allegedly funneled to insider wallets. During an X Space discussion, Coffeezilla confronted the Hawk Tuah team about over $1 million in fees generated from the token and questioned their handling of the situation.
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