Legal and Financial Fallout
Investors filed a lawsuit against the creators of the crypto, including overHere Ltd., Clinton So, and Alex Larson Schultz, alleging unlawful promotion and sale of the unregistered security. Haliey Welch is not named in the suit but is cooperating with the legal team representing the affected investors.
The $HAWK coin, associated with Welch, surged to a $491 million market cap before plummeting over 90% within hours. This volatility prompted legal action, with plaintiffs seeking to recover losses after being drawn in by Welch's involvement.
Public and Industry Reaction
Welch, facing accusations of scam involvement, has publicly stated her commitment to assisting in uncovering the truth and holding responsible parties accountable, directing affected individuals to contact the legal firm handling the lawsuit.
Critics and legal representatives have highlighted the exploitative nature of celebrity endorsements in the crypto space, with the $HAWK case underscoring the risks of memecoins and the need for transparency and regulation in cryptocurrency promotions.