Investors File Lawsuit Against HAWK Token Team
Date: 2024-12-26 Author: Henry Casey Categories: BUSINESS
The investors filed a lawsuit against Tuah The Moon Foundation, which accepted payments for HAWK tokens, as well as the project's founder Clinton Soh and alleged promoter Alex Larson Schultz. According to them, the organizers took advantage of the popularity of the meme heroine Haley Welch, who actively promoted the project on social media, to create excitement before the token's launch on December 4. However, Welch herself is not included in the list of defendants.
According to the plaintiffs, the token pre-sale brought in $2.8 million, and the estimated value reached $16.69 million. Shortly after the official launch, the token capitalization jumped to $491 million, but then fell sharply by 90%, which led to losses of $151,000.
The lawyers claim that the project team specifically registered the Tuah Foundation in an offshore jurisdiction to circumvent American laws. Through this company, 17% of the tokens were sold to a limited number of people, and the remaining assets continued to be advertised without trying to limit access for investors from the United States.
The plaintiffs insist that the project was focused on the American market, and Welch's popularity was used to attract investors. This, according to them, makes token holders effectively shareholders of the project.
Clinton So and his representatives deny guilt, stating that their participation in the project was minimal. They emphasize that they intend to deal with the claims in court.
The project developers, for their part, said that key decisions regarding the token were made by Schultz, known by the pseudonym Doc Hollywood. They also added that they did not receive any profit from the project, since “Schultz’s team disappeared when things started going badly.”
The well-known YouTuber Coffeezilla, who specializes in exposing scams, initially criticized the project, but later partially defended its organizers. According to him, the token fell victim to sniper bots, and Welch’s profit amounted to only $125,000. The remainder of the funds from the presale and commissions remains uncertain.
This story highlights the risks associated with investing in meme tokens and demonstrates the need to carefully analyze projects before investing.
