“The HAWK Token exhibits all the characteristics of an unregistered security under established legal precedent,” litigants claimed.
Investors filed a lawsuit against several entities involved in the launch of the Hawk Tuah (HAWK) memecoin on Dec. 19, alleging that the defendants engaged in the promotion and sale of an unregistered securities offering.
According to the legal filing, the defendants named in the lawsuit include the Tuah The Moon Foundation, OverHere Ltd, Clinton So, and Alex Larson Schultz — who allegedly promoted the memecoin. Attorneys for the plaintiffs wrote:
The Hawk Tuah memecoin surged to a market capitalization of approximately $491 million hours after its launch but plummeted by more than 90% immediately afterward.
