Influencer’s Meme Coin Promotion Now at the Heart of Fraud Litigation

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Influencer’s Meme Coin Promotion Now at the Heart of Fraud Litigation

Bitget-RWA2025/11/19 10:26

By:Bitget-RWA

- Influencer Haliey Welch faces federal lawsuit for promoting the collapsed HAWK meme coin, accused of earning $325,000 to mislead investors. - The HAWK token surged to $490M before crashing 93%, with claims insiders sold $1.27M in tokens minutes post-launch. - Welch's manager and company are co-defendants; the case links HAWK to other alleged "rug pulls" like TRUMP and LIBRA tokens. - Legal action highlights expanding scrutiny of influencers in crypto, as Welch's promotion amplified the token's fraudulent

Haliey Welch, widely recognized online as the "Hawk Tuah" girl, has been named as a defendant in a federal class action lawsuit against the creators of the ill-fated Solana-based

meme

coin HAWK, which suffered a rapid collapse after its 2024 debut

according to reports

. The suit claims Welch received up to $325,000 for promoting the token, despite its technical flaws, and describes her as a "key player" in a marketing effort that allegedly deceived retail investors

according to reports

. The complaint, filed by Burwick Law, also lists Welch’s manager, Johnnie Forster, and her business, 16 Minutes LLC, as additional defendants

according to reports

HAWK’s market cap briefly soared to $490 million within 15 minutes of launch, only to drop by 93% soon after. The lawsuit alleges this crash was orchestrated, with insiders selling $1.27 million worth of tokens just minutes after trading began

according to the filing

. Blockchain analysis referenced in the lawsuit connects the HAWK incident to other suspected "rug pulls," such as the LIBRA token promoted by Argentina’s President Javier Milei and the

TRUMP

snipe token associated with former U.S. President Donald Trump

according to reports

Influencer’s Meme Coin Promotion Now at the Heart of Fraud Litigation image 0

Welch’s involvement in the lawsuit has changed notably. She was initially left out to streamline efforts to recover investor funds, but was later included after cooperating with Burwick Law. The firm had previously explained that excluding her made it easier to focus on compensation for victims

according to Burwick Law

. The updated complaint now asserts that her promotional activities, including calling the token a "transformational cultural asset," amounted to fraudulent conduct

according to the filing

. Welch’s company, 16 Minutes LLC, reportedly entered a $325,000 agreement with Memetic Labs, which included a 50% share of profits from token trading

according to reports

The lawsuit also notes Welch’s rapid rise to fame after a spontaneous 2024 interview where she discussed her "hawk tuah" move, which she later used to build a massive social media following

according to reports

. Critics say her popularity boosted the token’s visibility, attracting investors who relied on her endorsement

according to reports

Burwick Law has not provided an explanation for its decision to add Welch to the case after initially leaving her out. The firm has also taken legal action against other prominent meme coin ventures, such as the M3M3 token and the TRUMP snipe coin

according to reports

. The HAWK lawsuit is now part of a growing number of crypto cases alleging coordinated fraud, with Welch’s participation highlighting the increasing legal focus on influencers in the crypto sector

according to reports

It should be emphasized that these are only allegations, and no court has yet determined their accuracy. Both Welch and Burwick Law have declined to comment

according to reports

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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