Investor lawsuit filed against Hawk Tuah memecoin creators, partners
Investors filed lawsuits against several entities involved in the launch of Hawk Tuah (HAWK) memecoin on December 19, alleging that the defendants engaged in promoting and selling an unregistered securities offering.
According to a legal filing, the defendants named in the suit include Tua the Moon Foundation, Overher Ltd., Clinton Soo and Alex Larson Schultz — who allegedly promoted memecoin. Attorneys for the plaintiffs wrote:
“HAWK's pre-launch trading has set the token above its estimated value, making it a cultural movement with high growth potential. I'm poised for success.”
Hawk Tuah's memecoin rose to a market capitalization of nearly $491 million after its launch, but immediately plummeted by more than 90 percent.
Investors' lawsuit against Hawk Tuah creators. Source: PACER
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The rise and fall of the Hawk Tuah memecoin
The Hawk Tuah memecoin was launched on December 4 with a market capitalization of about $16.6 million. The price of the coin increased after the market and within three hours the market value of meemcoin increased to 491 million dollars. It then quickly drops to $41.7 million.
This price action has sparked outrage from investors on social media, who have seen the startup as a well-known pump-and-dump scheme after memecoin's price plummeted.
Following Token's collapse, some investors filed complaints with the Securities and Exchange Commission (SEC) and encouraged others to do so.
Social media influencer Hallie Welch, who founded Memecoin, has denied allegations of insider trading by her or her team.
Popular YouTuber “Coffeezilla” took to social media to dispel rumors about the launch of HAWK.
A YouTube user has argued that the launch of memecoin was not a carpet drag and that her team has already sold millions of tokens to “strategic consultants”.
Coffizilla added that the claims that Pull the Carpet of $500 million or Welch made $50 million from the token launch are misinformation and exaggerated claims.
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