Angry Investors Sue Hawk Tuah Promoters Following 90% Token Crash

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As a seasoned analyst with years of experience in the tumultuous world of cryptocurrencies, I’ve seen my fair share of rug pulls and insider trading scandals. The Hawk Tuah meme coin project seems to be another addition to this unfortunate list.

The team behind the Hawk Tuah meme coin project is facing a lawsuit from disgruntled investors after a devastating crash in the token’s value.

On a Thursday report from Bloomberg Law, it was stated that investors claimed the project, which debuted the $HAWK token in early December, employed misleading tactics that led to substantial financial losses for them. The legal action alleges that the organizers manipulated events, executing a “rug pull,” a frequent cryptocurrency trick where developers abruptly withdraw funds and abandon the project. Consequently, this alleged scheme caused the token’s value to drop by an astonishing 90%, leaving investors with nearly worthless possessions.

Insider Trading or Rug Pull?

The $HAWK token made its debut in the cryptocurrency market through the Hawk Tuah meme coin initiative, led by Haliey Welch, a well-known influencer with a substantial online presence. She aggressively marketed the token to the public via her podcasts and social media networks.

Consequently, the token became popular, attracting both seasoned fans and new crypto enthusiasts who had faith in her. However, despite an encouraging beginning, the token’s worth plummeted significantly, causing great financial loss for many investors.

The sudden failure of cryptocurrency $HAWK ignited anger within its user base, as suspicions of underhanded activities swirled through social networks at an accelerated pace. Notably, crypto investigator Coffeezilla described the launch as “one of the most disappointing and distressing,” claiming possible insider trading linked to accounts tied to the project’s developers.

Multiple investors expressed their frustration, asserting that they had been deceived by the marketing tactics of the project and the association with Welch, whose endorsement boosted the credibility of the cryptocurrency.

Details of the Lawsuit

It appears that the dispute between investors and Overhere Ltd, the firm responsible for the token and its CEO Clinton So, as well as promoter Alex Larson Schultz, has escalated to legal action. Reports suggest this is the case.

The parties suing alleged that the accused illegally marketed and traded the $HAWK token to American investors, failing to secure necessary approval from the Securities and Exchange Commission (SEC). This action is said to have breached federal securities regulations.

The lawsuit claimed that the project exploited Welch’s fame, stirring up hype and causing a surge in the token’s worth, which subsequently plummeted dramatically.

Based on the court case, it’s stated that numerous investors were novices in the crypto market and largely trusted the project’s timeline (roadmap) and public statements made by Welch. The legal team for the plaintiffs claim that this trust was misplaced as these elements led investors to believe false promises, resulting in significant losses when the token’s worth plummeted.

Simultaneously, while Welch played a significant part in advocating for the project, it’s worth noting that she isn’t included among those being sued in the court case.

This dispute arises after several high-profile cryptocurrency collapses, leading people to make connections with Logan Paul’s problematic CryptoZoo venture. Known for his popular YouTube channel, Logan Paul is currently involved in a legal battle in the U.S. due to allegations of misleading investors. The lawsuit accuses him of endorsing the project without revealing that he had a stake in the cryptocurrency token associated with it.

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2024-12-19 22:15