Hailey Welch and ‘Hawk Tuah’ Partners Accused of Fraud in Crypto Lawsuit

Two weeks have passed since Hailey Welch, known to her fans as the “Hawk Tuah Girl,” disappeared from the public eye, leaving behind a storm of controversy surrounding her once-promising cryptocurrency project.

Welch, who gained popularity through her podcast Talk Tuah, has not released a new episode since claiming she was “going to sleep” shortly before the Hawk Tuah memecoin tanked by 95%.

The fallout has been swift and severe. Investors who backed Welch’s Hawk Tuah token have filed a lawsuit against her and associated entities, alleging the project was a fraudulent “rug pull.” The lawsuit, filed on behalf of those affected, names Welch, the ‘Tuah The Moon Foundation,’ OverHere Ltd, its executive Clinton So, and the coin’s promoter, Alex Larson Schultz, as defendants.

According to court documents obtained by Newsweek, the complaint states that “the unlawful promotion and sale of the Hawk Tuah cryptocurrency memecoin” led to significant financial losses for investors, many of whom were first-time cryptocurrency participants. Welch’s public endorsement of the project and her involvement in its road map played a pivotal role in attracting investors, the lawsuit claims.

“Many of the investors were first-time cryptocurrency participants drawn to the project through Welch’s involvement,” the lawsuit alleges. “The rapid decline in the Token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated road map.”

The Hawk Tuah token initially gained traction as part of a wave of community-driven memecoins, with Welch promoting it heavily across social media and her podcast. However, allegations of mismanagement and deceptive practices arose after the token’s value plummeted nearly overnight, wiping out millions in investor funds.

To add more mystery, Welch has stopped making public comments of any kind and has fostered speculation on her whereabouts and her level of involvement in the purported fraud. Her disappearance draws comparisons with other high-profile cryptocurrency scandals in which founders disappeared when their projects imploded.