Hailey Welch Meme Coin Lawsuit: Group Behind $HAWK Accused of Illegally Selling and Promoting Unregistered Security

The group behind the meme coin named after viral "Hawk Tuah Girl" Hailey Welch has been hit with a lawsuit from investors after the $HAWK coin crashed within hours of its launch.

A group of investors has filed a lawsuit against the organization behind the meme coin named after viral "Hawk Tuah Girl" Hailey Welch, following its rapid crash in valuation shortly after launch, according to a report.

The complaint, filed in New York on Thursday, accuses the Tuah The Moon Foundation, overHere Ltd and its founder Clinton So, and influencer Alex Larson Schulz, also known as "Doc Hollywood," of illegally selling and promoting the coin, which was allegedly not registered as a security, according to The New York Post.

Bitcoin hits $100,000 for the first time ever

Representation of cryptocurrencies are seen in this illustration photo taken in Krakow, Poland, on Nov. 14, 2022. (Jakub Porzycki/NurPhoto via Getty Images)

Welch was not named in the suit, but she addressed the situation on social media on Friday.

"I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community," she wrote on X. "I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter."

She directed anyone who sustained losses from the $HAWK coin to contact the Burwick Law firm.

Haliey Welch appears at SiriusXM Studios in Los Angeles on July 31. (Michael Tullberg/Getty Images )

The $HAWK coin was launched on Dec. 5, with Welch promoting it to her social media following. The meme coin quickly surged to a market cap of $490 million, before plummeting to just $41.7 million in valuation within a matter of hours.

Welch told Fortune at the time that Hawk was not meant to be a "cash grab."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The 22-year-old overnight celebrity said that while she used to view cryptocurrency as a scam, she changed her mind because it’s a "fun way to get my fans to interact."

FOX Sports' Scott Thompson contributed to this report.

LINK: Get updates on this story and more at foxbusiness.com.