Lawsuit Filed Against HAWK Memecoin Creators, Excluding Haliey Welch

A group of 12 plaintiffs filed a lawsuit against two creators of HAWK, a memecoin promoted by Haliey Welch, in the Eastern District Court of New York. Welch is not included in the suit, which targets her business partners, a launchpad, and a Cayman Islands foundation.

Haliey Welch gained recognition as the face of the “Hawk Tuah” meme after a man-on-the-street video in Nashville this summer. She transitioned from this viral moment to an influencer career, with her Talk Tuah podcast reaching #4 on the charts.

Welch engaged with the crypto community by attending Bitcoin Nashville and participating virtually in Korea Blockchain Week. Her X profile picture references the Mog memecoin.

In late November, a company called overHere announced its partnership with Welch to launch HAWK, aiming to “redefine the crypto space.” The HAWK token is the sole product listed on overHere’s website, founded by Clinton So, who is one of the defendants in the lawsuit.

So's PR firm, Rekt Partners, stated, “We have been extremely transparent about our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong.”

Alex Larson Schultz, known as Doc Hollywood, also promoted the HAWK launch. The lawsuit claims some tokens were pre-sold to fund the project. The token debuted on December 4, experiencing a rapid rise in market capitalization followed by a 90% drop within hours. Welch, So, and Schultz initially defended the launch but have since reduced their social media presence.

So has distanced himself from Schultz, claiming he had full control of the token and “vanished when things got hard.” OverHere suggested that Welch and her team lacked the experience to effectively leverage Web3.

The situation reflects a recurring issue in crypto, where celebrities are often exploited by business partners for profit, potentially at the expense of investors. Max Burwick from Burwick Law, which filed the suit, noted discussions with Welch’s counsel and emphasized the exploitation of public figures in the crypto space.