She created a podcast titled Talk Tuah and attempted to expand her ventures by launching her own memecoin.
The cryptocurrency, called $HAWK, attracted many buyers, some of whom reportedly invested their “life savings” into the venture.
However, the coin’s value plummeted dramatically within just 20 minutes of its launch, decreasing from $490 million to a mere $41 million.
As a result of the financial loss experienced by investors, Welch faced legal action.
A court document alleged that the lawsuit “arises from the unlawful promotion and sale of the Hawk Tuah cryptocurrency memecoin, known as the ‘$HAWK’ token (the ‘Token’ or ‘$HAWK’), which Defendants offered and sold to the public without proper registration.”
The lawsuit includes the Tuah The Moon Foundation, OverHere Ltd, and Clinton So, along with the coin’s promoter Alex Larson Schultz, though Welch herself was not named.
Earlier, Welch shared a message on her Twitter account stating: “Hawkanomics: Team hasn’t sold one token and not 1 KOL was given 1 free token.
“We tried to stop snipers as best we could through high fee’s in the start of launch on @MeteoraAG. Fee’s [sic] have now been dropped.”
Recently, Welch posted another statement on her social media platforms.
According to Welch, she is actively collaborating with a legal team to help “uncover the truth.”
She stated: “I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community.
“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.
“If you have experienced losses related to this, please contact Burwick Law using the link below: https://www.burwick.law/newclient.”
The team behind the cryptocurrency also provided their own explanation of the events.
They stated: “We Only Built Airdrop Tech for Web2 Fans, for Free,” their statement began.
“We saw $HAWK as the perfect use case for our startup’s idea: to bring airdrops to web2.
“Hailey Welch—a literal meme—launching a meme coin felt like synchronicity.
“Our goal was simple: bring Web2 fans into Web3 seamlessly. A way to bring Web2 into crypto through culture, not just speculation.
“First of its kind. That’s it. For free.”