The lawsuit, brought by law firm Burwick, states that $HAWK investors believe the defendants are guilty of deceptive and aggressive advertising, as well as causing large financial losses to investors by offering and selling unregistered digital assets.
“Through aggressive advertising campaigns and promises of tremendous future growth, defendants created a speculative hype that caused the market value of the $HAWK token to skyrocket shortly after launch. Having reached a significant market capitalization, the scammers collapsed the exchange rate and withdrew assets from the project,” the lawsuit says.
The lawsuit names multiple defendants. Among them are the Tuah The Moon Foundation, accused of managing the proceeds from the sale of tokens, the company that created the memcoin OverHere, and Alex Schultz, a promoter of the $HAWK token from Los Angeles, who was named as a key defendant in the case.
The statement of claim does not contain a requirement to personally prosecute Haley Welch, whose nickname became the name of the project. The lawsuit alleges that the defendants may have used her name and popularity without disclosing Welch’s true intentions or how the crypto scam operated.
Memcoin $HAWK fell 91% within 24 hours of its launch. The losses of the project investors amounted to about $450 million. Welch’s team categorically denies any insider transactions on its part.
Source: Bits
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