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    Investors file lawsuit against Hawk Tuah cryptocurrency creators over alleged pump-and-dump scheme

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    Investors are suing the creators of joke cryptocurrency Hawk Tuah, alleging that the coin was unfairly promoted as a significant cultural movement with substantial growth potential. The complaint targets Tuah The Moon Foundation, OverHere Ltd, and individuals Clinton So and Alex Larson Schultz, accusing them of hyping the memecoin. Hawk Tuah’s value spiked shortly after its launch to around $491 million, before plummeting by over 90%. Some investors reported the situation to the SEC, suspecting a pump-and-dump scheme. The influencer linked with the memecoin, Haliey Welch, denies foul play, while YouTuber “Coffeezilla” suggests initial sales to strategic advisers caused the early price drop.

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    Some angry investors are suing the folks who set up Hawk Tuah (HAWK), a joke cryptocurrency that launched on Dec. 19. They claim that key players unfairly pushed this memecoin as more than just a fun gamble, hinting it was actually some big cultural movement with the potential for serious growth.

    In the lawsuit, the investors are pointing fingers at the Tuah The Moon Foundation, a company named OverHere Ltd, and two guys, Clinton So and Alex Larson Schultz, who they claim hyped up the coin to attract more folks to buy it.

    The claim states: “The pre-launch marketing for HAWK made it look like more than a risky bet, painting it as a cultural movement with big growth potential. The people involved, especially trusted public figures, made it seem like this project was going to be a big win.”

    Right after it was launched, the value of the Hawk Tuah memecoin exploded up to around $491 million but then crashed by over 90% straight after.

    Hawk Tuah kicked off on Dec. 4 with a value of just about $16.6 million. The value skyrocketed after the launch and within just three hours the coin was worth $491 million. But this didn’t last long and it dropped down to roughly $41.7 million super fast.

    This sudden rise and fall pissed off a bunch of investors who took to social media to vent, saying that the launch was a classic case of a pump-and-dump scheme, following the memecoin’s price crash.

    After the value of the token collapsed, some investors even reported the whole thing to the Securities and Exchange Commission (SEC), encouraging others to do the same.

    The social media influencer who the memecoin was based on, Haliey Welch, has denied any claims of insider trading, arguing that neither she nor her team did anything dodgy.

    Meanwhile, a YouTuber named “Coffeezilla” tried to explain the HAWK launch, claiming that it wasn’t a scam and that the initial sales of a huge amount of tokens to strategic advisers are what caused the early price drop.

    Coffeezilla went on to argue that the idea that the fall in value was a $500 million scam or that Welch made $50 million from the token launch were just rumors and were blowing things way out of proportion.

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