Multiple law firms are investigating social media personality Hailey Welch, known as the "Hawk Tuah Girl," after her cryptocurrency $HAWK crashed spectacularly, reportedly causing some fans to lose their life savings.
The cryptocurrency, launched on the Solana blockchain platform, initially surged 900% in value reaching a market cap of nearly half a billion dollars before plummeting 95% shortly after launch. The dramatic collapse has prompted accusations of a "pump and dump" scheme targeting Welch's substantial social media following.
According to crypto investigator Stephen Findeisen, Welch received $125,000 upfront for marketing the token, plus an agreement for 50% of net proceeds after expenses. Findeisen, who runs the Coffeezilla YouTube channel, called it "one of the most miserable, horrible launches I've ever seen," noting that 17% of tokens went to insiders with no lock-up period while only 3% was released for public trading.
Blockchain analysis firm Bubblemaps revealed that 96% of $HAWK tokens were concentrated in one cluster of related wallets, suggesting coordinated trading activity. Multiple investors have announced plans to pursue legal action against Welch, claiming they were deliberately misled.
While Welch and her team attempted to address concerns in an audio event on X Spaces, they faced intense criticism from investors who lost money. Her attorney maintains she had no intention to deceive fans.
The incident has sparked widespread discussion about celebrity cryptocurrency promotions and their potential risks to inexperienced investors. Several content creators have published detailed analyses explaining how newer crypto investors may have been misled during the token launch.
As investigations continue, affected investors are being encouraged to document their losses and contact the law firms handling potential class action lawsuits.