Hawk Tuah Sued Over Failed Solana Meme Coin Promotion
Influencer Haliey Welch, known as Hawk Tuah, is named in a new federal class action lawsuit alleging she promoted a Solana meme coin that collapsed minutes after launch. The complaint claims Welch earned up to $325,000 for steering retail investors into the token, which spiked to a $490 million market cap before crashing over 90%. Insiders allegedly sold more than $1.2 million during the brief rally, reflecting a classic rug pull structure.
The amended filing links the incident to earlier meme coin failures—LIBRA, M3M3, and AIAI—suggesting repeated extraction patterns from related wallet clusters. Defendants include Welch’s manager and her 16 Minutes LLC, accused of orchestrating the full marketing funnel. Burwick Law seeks to expand fraud claims and unmask remaining participants, with ongoing on-chain investigations into similar Solana meme coin collapses.
Bearish
This lawsuit highlights the persistent risks in meme coin markets and exposes potential insider manipulation on Solana. In the short term, traders may reduce exposure to high-volatility tokens, triggering further sell-offs in similar projects. Historically, legal actions against influencers and rug pull schemes have dampened retail appetite, as seen after major collapses like $HOT and $DOG.
Long term, increased regulatory scrutiny and on-chain forensic investigations could boost market integrity but raise compliance costs. While Solana’s core network remains unaffected, the broader altcoin sector may face tighter due diligence and diminished speculative inflows until confidence in promotional practices is restored.