Influencer's Meme Coin Marketing Now Center of Fraud Lawsuit

Haliey Welch, the social media influencer known as the "Hawk Tuah" girl, has been added as a defendant in a federal class action lawsuit targeting the creators of the ill-fated Solana-based meme coin HAWK, which collapsed shortly after its launch in 2024 according to reports. The lawsuit alleges Welch was paid up to $325,000 to promote the token despite its technical shortcomings, positioning her as a "critical component" of a marketing campaign designed to mislead retail investors according to reports. The filing, submitted by Burwick Law, also names Welch's manager, Johnnie Forster, and her company, 16 Minutes LLC, as co-defendants according to reports.

The HAWK token's market capitalization briefly surged to $490 million within 15 minutes of its launch before plummeting 93% in value. The lawsuit claims the collapse was intentional, with insiders profiting by selling $1.27 million in tokens minutes after the launch according to the filing. Blockchain forensics cited in the filing link the HAWK scheme to other alleged "rug pulls," including the LIBRA token promoted by Argentine President Javier Milei and the TRUMP snipe token tied to former U.S. President Donald Trump according to reports.

Welch's role in the case has evolved significantly. Initially excluded from the lawsuit to avoid complicating recovery efforts for investors, she was later added after cooperating with Burwick Law. The firm previously stated that omitting her allowed it to focus on recouping losses more efficiently according to Burwick Law. The new filing argues that her promotional efforts, including branding the token as a "transformational cultural asset," constituted fraud according to the filing. Welch's 16 Minutes LLC signed a $325,000 contract with Memetic Labs, granting the latter a 50% profit share tied to token trading activity according to reports.

The lawsuit also highlights Welch's rise to fame following an unscripted 2024 interview where she described her "hawk tuah" technique, which she later leveraged to grow a multi-million follower social media presence according to reports. Critics argue that her influence amplified the token's appeal, drawing investors who trusted her endorsement according to reports.

Burwick Law has not commented on its decision to add Welch to the case after initially excluding her. The firm has similarly pursued legal action against other high-profile meme coin projects, including the M3M3 token and the TRUMP snipe coin according to reports. The HAWK case now joins a growing list of crypto-related lawsuits alleging coordinated fraud, with Welch's involvement underscoring the expanding legal scrutiny of influencers in the space according to reports.

It is important to note that these are allegations, and no court has yet ruled on their validity. Welch and Burwick Law have not responded to requests for comment according to reports.