The lawsuit targets Welch's business partners, a launchpad, and a Cayman Islands foundation, but does not include Welch herself.

A source close to Welch stated that she is aware of the negative perception surrounding her rise in the industry and is determined to clarify her involvement.

In her social media response, Welch expressed her commitment to cooperate with legal teams and assist affected investors in uncovering the truth.

Welch's absence from social media following the token's launch raised suspicions that she had taken investors' money and disappeared.

Investors are suing the creators and promoters of the 'Hawk Tuah' memecoin for alleged securities law violations, claiming significant financial losses after the token's value collapsed.

Haliey Welch, who launched the $HAWK cryptocurrency on December 4, 2024, initially saw her project gain a market cap in the hundreds of millions before it crashed.

The ongoing controversy raises questions about whether Welch knowingly participated in a scam or was manipulated by others.

Billionaire investor Mark Cuban defended Welch, suggesting she may not have fully understood the cryptocurrency market and had misplaced trust in her associates.

Despite not being named in the lawsuit, Welch faces backlash online, with critics accusing her of involvement in a 'money-grab' scheme, which she denies.

The defendants in the lawsuit may seek a summary judgment, and if denied, the case could proceed to trial to determine damages.

Law firms representing the investors argue that this case exemplifies how celebrities can exploit their influence, ultimately harming everyday investors.

The internet's reaction to the controversy has been a mix of jokes, memes, and expressions of anger, reflecting the chaotic nature of the situation.