Hawk Tuah Girl Lawsuit Update, $325K Payment Exposed in Federal $HAWK Memecoin Fraud Case
Haliey “Hawk Tuah Girl” Welch was added as a defendant in an amended federal class action lawsuit after allegedly receiving up to $325,000 to promote the $HAWK memecoin that collapsed 93% within hours of its December 4, 2024 launch. On April 23, 2025, Judge Cheryl L. Pollak appointed Alexander Escobar as Lead Plaintiff representing investors who purchased $HAWK tokens, with Wolf Popper LLP and Burwick Law serving as Co-Lead Counsel. The case alleges violations of federal securities laws after the token surged to $491 million market cap before plummeting below $100 million.
Welch initially cooperated with the law firm but was later named when evidence showed she signed a “Meme Token Creation and Monetization Agreement” with Memetic Labs five months before launch, receiving $125,000 upfront with another $200,000 tied to promotional milestones.
What Is the Hawk Tuah Girl Lawsuit About?
The lawsuit filed December 19, 2024 in the United States District Court for the Eastern District of New York alleges violations of Sections 5 and 12(a)(1) of the Securities Act of 1933. Seventeen plaintiffs collectively lost over $151,000 investing in the $HAWK token.
The amended complaint alleges defendants orchestrated a pump-and-dump scheme where insiders purchased large token portions before selling during the launch, leaving retail investors with worthless assets.
Original Defendants Named:
- Alex Larson Schultz (social media influencer, promoter)
- overHere Limited (Hong Kong web3 developer, token launchpad)
- Clinton So (founder of overHere Limited)
- Tuah The Moon Foundation (Cayman Islands entity receiving token sale funds)
Defendants Added in Amended Filing:
- Haliey Welch (viral social media personality)
- Johnnie Forster (Welch’s manager)
- 16 Minutes LLC (operating entity for Welch’s career)
- Memetic Labs (token creation entity)
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Timeline of $HAWK Token Collapse
June 2024: Welch goes viral after street interview featuring “hawk tuah” phrase
July 2024: Memetic Labs allegedly signs monetization agreement with Welch
December 4, 2024: $HAWK token launches on Solana blockchain
The token’s market cap surged from $16.69 million pre-sale to $491 million shortly after launch, then plummeted over 90% within hours, dropping below $100 million
December 4, 2024 (evening): Welch, Schultz, and So hold audio Spaces event on X addressing investor concerns. Coffeezilla, YouTuber investigating crypto fraud, questions the team. Welch ends call abruptly saying she’s “going to bed”
December 19, 2024: Initial lawsuit filed naming Schultz, So, overHere, and Tuah Foundation
December 20, 2024: Welch breaks silence on X stating she’s “fully cooperating” with attorneys representing impacted investors and directing those who lost money to contact Burwick Law
January 2025: Amended complaint adds Welch, Forster, and 16 Minutes LLC as defendants
April 23, 2025: Court appoints lead plaintiff and co-lead counsel
Allegations Against Hawk Tuah Girl: Payment Structure Revealed
The lawsuit claims Welch promoted $HAWK as a “transformational cultural token” that would integrate with her Talk Tuah podcast offering subscription-style benefits, but the token lacked technical components to deliver these features.
Prosecutors argue the payment structure elevated Welch from passive sponsor to critical component of the token’s marketing funnel, making her essential to drawing retail buyers who trusted her public persona.
According to Rolling Stone reporting, Welch allegedly owned 10% of the entire $HAWK supply though she could not sell for one year, and received 50% of net trading proceeds after operating costs.
What Welch Allegedly Promoted vs. Reality
The amended filing alleges Welch promoted technical capabilities the token could not deliver:
- Integration with Talk Tuah podcast platform
- Subscription-style member benefits
- Community governance features
- Long-term utility and value growth
Blockchain analysis shows insiders sold $1.27 million in tokens just minutes after launch.
Hawk Tuah’s Response to Lawsuit Claims
Welch stated: “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 truth, hold the responsible parties accountable, and resolve this matter”.
In February 2025, Welch addressed the scandal publicly for the first time beyond her initial December statement. She claimed the token was presented to her as a “long-term coin” that would “change the way everybody thinks about crypto,” stating she felt “really bad for all the people that got affected by it” and calling her involvement her “biggest mistake”.
Welch blamed trusting someone who was a “friend of a friend” for her decision to participate in the project.
Billionaire Mark Cuban defended Welch during a Washington Post podcast, claiming it wasn’t something she fully understood but she trusted people around her.
Federal Securities Law Violations Alleged
The complaint contends defendants violated the Securities Exchange Act by advertising and selling unregistered securities across state lines and internationally despite clear indications the token was a security, with no registration documents ever filed with the SEC.
Legal Basis for Securities Claims:
Under the Howey Test, cryptocurrency tokens qualify as securities if they involve:
- Investment of money
- Common enterprise
- Reasonable expectation of profits
- Derived from efforts of others
The complaint alleges defendants leveraged Welch’s celebrity status to create “a speculative frenzy that caused the $HAWK Token’s market value to spike shortly after launch,” fostering profit expectations based on Welch’s promotional efforts.
Marketing statements like “Tuah to the Moon” and promises of redefining the crypto space created reasonable expectations of profits among investors.
Connection to Other Celebrity Memecoin Schemes
The lawsuit draws comparisons to other high-profile memecoin collapses, noting that LIBRA promoted by Argentine President Javier Milei collapsed hours after launch, while the TRUMP token featuring Donald Trump’s branding tanked days after its January 2025 launch.
Burwick Law alleges these projects shared similar on-chain patterns and insider trading behaviors tracked through blockchain forensics.
The complaint identifies coordinated wallet activity across multiple failed tokens including LIBRA, M3M3, AIAI, and the TRUMP snipe, suggesting systematic rug-pull operations.
Current Status: April 2025 Court Developments
The cases—Albouni et al. v. Schultz et al., No. 1:24-cv-8650 and Rodriguez Mena v. Schultz, et al., No. 1:24-cv-8965—remain pending in the U.S. District Court for the Eastern District of New York.
Wolf Popper LLP and Burwick Law seek to recover losses on behalf of plaintiffs and the proposed class of $HAWK token purchasers.
The case entered class certification phase following the April 2025 lead plaintiff appointment, with discovery proceedings underway regarding promotional agreements, token distribution records, and communications between defendants.
Next Legal Steps:
- Class certification motions
- Discovery of financial records and communications
- Defendant responses to amended complaint
- Potential settlement negotiations
- Trial preparation if settlement fails
What Investors Lost: Damages and Recovery Efforts
Initial plaintiffs reported collective losses exceeding $151,000, but the class action structure allows thousands of additional investors to join the case.
The $HAWK token currently trades at less than $0.002, representing over 99% loss from peak valuation.
Wolf Popper and Burwick Law are seeking:
- Rescissory damages (returning investment amounts)
- Compensatory damages for financial losses
- Civil penalties for securities violations
- Attorney fees and litigation costs
- Injunctive relief preventing future schemes
Legal Expert Analysis: Securities Law Implications
The case tests how federal securities laws apply to celebrity-endorsed cryptocurrency tokens and social media influencer marketing.
Legal analysts note that the case demonstrates the evolution of crypto fraud from obscurity to “algorithmic enterprise,” with content farms exploiting curiosity through AI-generated promotional content.
Securities law experts emphasize that celebrity endorsers can face liability when promoting unregistered securities, regardless of whether they understood the legal implications.
The Federal Trade Commission updated influencer marketing guidelines in 2023 requiring clear disclosure of material connections and financial compensation for promotional content.
Memecoin Industry Context: Rise of Pump-and-Dump Schemes
Memecoins surged in popularity fueled by user-friendly platforms like Pump.fun on the Solana blockchain, making it easy for anyone to create and launch tokens with minimal barriers.
The accessible technology created opportunities for sophisticated fraud schemes targeting inexperienced cryptocurrency investors drawn by celebrity endorsements.
Regulatory authorities including the SEC have increased scrutiny of memecoin launches, particularly those involving celebrity promoters and rapid price movements indicating potential manipulation.
FAQ About Hawk Tuah Girl Lawsuit
Is Hawk Tuah Girl being sued for the $HAWK crypto collapse?
Yes, Haliey Welch was added as defendant in an amended complaint filed in early 2025 after initially cooperating with the law firm. The lawsuit alleges she received up to $325,000 to promote a token lacking promised technical capabilities.
What are the specific allegations in the Hawk Tuah lawsuit?
The lawsuit alleges violations of federal securities laws including selling unregistered securities, orchestrating pump-and-dump schemes, and misleading investors about token features and utility through promotional campaigns.
How much money did investors lose in the $HAWK token?
Initial plaintiffs reported collective losses exceeding $151,000, though the class action structure means thousands of additional investors likely lost significantly more as the token crashed over 90% within hours of launch.
What is the current status of the Hawk Tuah lawsuit in 2025?
On April 23, 2025, the court appointed Alexander Escobar as Lead Plaintiff with Wolf Popper LLP and Burwick Law as Co-Lead Counsel. The case remains pending in the Eastern District of New York federal court.
Did Hawk Tuah Girl respond to the lawsuit allegations?
Yes, Welch stated she’s “fully cooperating” with attorneys representing impacted investors and later called her involvement her “biggest mistake,” claiming the token was presented as a long-term project that would change crypto perceptions.
What laws did the $HAWK token allegedly violate?
The complaint alleges violations of Sections 5 and 12(a)(1) of the Securities Act of 1933 for selling unregistered securities across state lines without proper SEC registration or investor disclosures.
Can I join the Hawk Tuah class action lawsuit?
Investors who purchased $HAWK tokens can contact Wolf Popper LLP or Burwick Law to potentially join the class action. Class certification proceedings are underway following the April 2025 lead plaintiff appointment.
What other celebrity memecoins are mentioned in the lawsuit?
The complaint references similar alleged schemes involving LIBRA (promoted by Argentine President Javier Milei), TRUMP (Donald Trump’s token), and MELANIA tokens, suggesting coordinated insider trading patterns.
The Hawk Tuah Girl lawsuit represents a significant test of how federal securities laws apply to social media influencer cryptocurrency promotions and celebrity-endorsed tokens. With the case entering discovery phase and class certification proceedings underway, the outcome will likely impact future regulations governing influencer involvement in cryptocurrency projects and establish precedents for celebrity liability in token launches.
Investors who purchased $HAWK tokens should document their transactions and monitor case developments through the court docket and plaintiff counsel websites for updates on class certification and potential recovery options.
About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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