The controversy stems from the huge crash of the $HAWK meme-coin, which Welch had promoted, and a subsequent lawsuit alleging improper registration of the cryptocurrency.

The lawsuit, filed by investors, targets overHere Ltd., its founder Clinton So, influencer Alex Larson Schultz, and the Tuah The Moon Foundation. It accuses them of unlawfully promoting and selling an unregistered cryptocurrency. Despite her public association with the memecoin, Welch herself is not named as a defendant

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A source close to Welch told Daily Mail, “Haliey understands how her unexpected start in the industry comes across, but since achieving virality, she’s proven she has the star power to lead a successful career.”

“She plans to keep pushing forward after clearing up the narrative around her involvement in this project.”

Welch has enlisted the help of Burwick Law, a firm specializing in crypto litigation, to uncover the truth behind the project and hold the responsible parties accountable.

Haliey Welch denies leading $HAWK project

Daily Mail reported that Welch’s role in the project was limited. “She did not spearhead or create the crypto project,” the source explained. “She was nothing more than a paid spokesperson who received a sponsorship fee to lend her persona to the team that created and launched the $HAWK memecoin.”

“I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community. 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,” Welch told Daily Mail.

ALSO READ| Hawk Tuah Girl’s meme coin crashes from $500m to $60m in minutes, fans in meltdown

The lawsuit alleges that the $HAWK token soared to a $490 million market cap before plummeting by over 90% within hours of its December 4 launch. Investors claim the presale raised approximately $2.8 million at a valuation of $16.69 million. Plaintiffs are seeking over $150,000 in damages, accusing the defendants of marketing the coin unlawfully and making minimal efforts to restrict its sale outside the US.

Haliey Welch needs to talk tuah lawyer. The viral star, a.k.a. Hawk Tuah Girl, has found herself in hot water after the group behind her meme coin, HAWK, was sued on Thursday for failing to properly register the cryptocurrency as a security. A group of people who invested in the coin — which soared to a $490 million market cap before experiencing a 90 percent crash hours later — are suing overHere Ltd. founder Clinton So and his company, the Tuah the Moon Foundation, and influencer Alex Larson Schultz for damages in excess of $151,000. Welch herself is not named in the suit.

However, just because she’s not named as a defendant does not free her from this mess. Welch’s name is all over the complaint, and attorneys for the plaintiffs argue that her involvement put their clients under the impression that HAWK was a registered security. “Many of the investors were first-time cryptocurrency participants drawn to the project through Welch’s involvement,” the complaint reads. “The rapid decline in the Token’s value caused substantial damages to investors who relied on Welch’s participation and the project’s stated roadmap.”

In a statement shared to X, Welch said, “I take this situation extremely seriously and want to address my fans, the investors who have been affected, and the broader community.” She added, “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.”

A spokesperson for overHere, the web3 company that launched and promoted HAWK, told Bloomberg that the company had done nothing wrong. “We have been extremely transparent about the limited scope and extent of our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong,” they said.

This saga should probably serve as a warning to all future viral celebrities: Just stick to podcasting.

North Korean hackers have stolen $1.34bn (£1bn) in cryptocurrency in 2024, accounting for nearly 60 per cent of the total amount stolen across the world, according to a new study.

A total of $2.2bn (£1.76bn) has been stolen from crypto platforms this year, marking a rise of 21 per cent, with crypto hacks by North Korean affiliates “becoming more frequent”, a study by blockchain analysis company Chainalysis said.

The amount stolen by North Korea-affiliated saw a 102 per cent increase in value from 2023, when an estimated $660.50m was stolen.

Isolated in the global market and reeling under international sanctions, the government in North Korea is accused of turning to crypto theft to fund state-sponsored operations and support its booming nuclear arsenal.

The report said that the US and international experts have assessed that Pyongyang uses the stolen crypto money to “finance its weapons of mass destruction and ballistic missiles programs”.

“Hackers linked to North Korea have become notorious for their sophisticated and relentless tradecraft, often employing advanced malware, social engineering, and cryptocurrency theft to fund state-sponsored operations and circumvent international sanctions,” the report said.

Some of these attacks appeared to be linked to North Korean IT workers who have been able to infiltrate crypto and other technology firms, the report added.

“These workers often use sophisticated Tactics, Techniques, and Procedures (TTPs), such as false identities, third-party hiring intermediaries, and manipulating remote work opportunities to gain access,” it said.

The research comes at a time when the value of bitcoin, the world’s biggest and best-known cryptocurrency, has rallied to record levels ahead of US president-elect Donald Trump‘s second administration. This week Mr Trump reiterated that he plans to create a US strategic reserve of bitcoin similar to its strategic oil reserve, stoking the enthusiasm of crypto bulls.

The US Department of Justice (DoJ) has launched a crackdown on North Korean hackers engaged in crypto theft in recent years. It indicted 14 North Korean nationals who obtained employment as remote IT workers at US companies and were accused of generating more than $88m by stealing proprietary information and extorting their employers.

In one of the most significant incidents of crypto theft, a North Korea-affiliated hack targeted the Japanese cryptocurrency exchange DMM Bitcoin. The attack led to the theft of around 4,502.9 Bitcoin, worth $305m at the time.