WASHINGTON (TNND) — Hailey Welch said Friday she is “fully cooperating” with a legal team after investors in a cryptocurrency associated with her sued its developers.
“I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community,” Welch posted on social media platform X.
“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,” she continued.
The Wolf Popper and Burwick Law firms filed a lawsuit Thursday on behalf of 17 people who invested in the “Hawk” token. They accused four parties of violating federal securities laws in the claim, which centers on an allegation that the coin is not registered.
“Hawk” shows all the characteristics of an unregistered security under legal precedent, according to the plaintiffs.
“The plaintiffs argue that the defendants leveraged Haliey Welch’s celebrity status to create ‘a speculative frenzy that caused the [$HAWK] Token’s market value to spike shortly after launch, reaching a significant market capitalization,’” the firms said. “As alleged in the complaint, the defendants engaged in actions that potentially violated federal securities laws.”
“Hawk” was also marketed as a “groundbreaking cryptocurrency project” by the defendants, who fostered expectations of profit based on Welch’s efforts, according to the firms.
“According to the complaint, ‘Welch’s promotional efforts emphasized the [$HAWK] Token’s groundbreaking nature and inclusivity while creating an expectation that it would redefine the crypto space,’” they said.
“This marketing approach, the plaintiffs allege, led many first-time cryptocurrency investors to participate based on Hailey Welch’s involvement and the project’s promised roadmap,” the firms continued.
Have questions, concerns or tips? Send them to Ray at rjlewis@sbgtv.com.
