Group behind viral 'Hawk Tuah' star's meme coin hit with lawsuit over crash

Published On Dec 20, 2024, 4:56 PM

The creators of the meme coin $HAWK, inspired by viral star Hailey Welch, were hit with a lawsuit after the coin's value plummeted from $490 million to below $100 million within hours of its launch. Investors accuse the coin's promoters of illegal securities sales. Although Welch promoted the coin, she wasn't named in the lawsuit, but expressed her intent to support those affected by the situation.

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The lawsuit could lead to increased scrutiny of meme coins and more regulatory interventions. This sentiment might indicate a broader negativity around investing in unregulated crypto assets and meme coins. As legal issues unfold, investor confidence may further decline, driving down interest and potentially leading to losses for those still invested.

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