A group of investors is suing several defendants for selling unregistered securities, including cryptocurrency promoter Alex Larson Schultz, overHere Ltd’s Clinton So, and social media influencer Haliey Welch’s foundation Tuah The Moon Foundation.
The lawsuit alleges that these parties failed to register the US-marketed memecoin “$HAWK” with the SEC despite raising $2.8 million from investors. However, the value of the token plummeted 90% from its launch price of $16.69 million to below $100 million within hours.
Investors claim they lost over $151,000 combined after investing in the cryptocurrency. The case alleges that defendants made “no serious attempt” to restrict purchasers outside the US and used social media influencer Welch’s fame to stir a frenzy before launching the token.
OverHere Ltd’s Clinton So is accused of advising lawyers to create an offshore entity for the Tuah Foundation and selling 17% of the tokens, while other defendants continued marketing the remaining 83%. The group claims that the project was intended to take advantage of the American market.
A spokesperson for OverHere Ltd stated that they are confident in their actions and will let the process play out in court. However, investors’ attorneys have accused the defendants of doing nothing wrong.
Source: https://news.bloomberglaw.com/securities-law/hawk-tuah-memecoin-investors-sue-promoters-over-us-registration