Haliey Welch, also known as the “Hawk Tuah Girl,” is addressing the fallout from the collapse of $HAWK, the cryptocurrency she helped promote earlier this month. Welch has announced her full cooperation with legal representatives for affected investors following the token’s value plummeting by over 90% shortly after launch. While Welch is not named in the lawsuit filed in the Eastern District of New York, the suit targets $HAWK’s creators, including overHere Ltd., founder Clinton So, and the Tuah The Moon Foundation, accusing them of unlawfully promoting and selling unregistered cryptocurrency.

The $HAWK token, which launched on December 4, initially surged to a $491 million market cap before its rapid decline. Welch’s team blamed bots, or “snipers,” for the drop, alleging these automated programs bought and sold tokens in a way that destabilized the market. In a statement shared on X, Welch encouraged impacted investors to contact the law firm Burwick PLLC and affirmed her commitment to assisting the investigation to hold responsible parties accountable.

The lawsuit filed by Burwick PLLC and Wolf Popper LLP highlighted the financial losses suffered by first-time cryptocurrency investors drawn in by Welch’s endorsement. According to their news release, the extreme volatility of $HAWK left many with significant losses. Welch has denied selling any of her holdings during the controversy.

Welch had promoted $HAWK extensively on her social media channels and explained her decision to enter the cryptocurrency market in an interview with Fortune, stating she saw crypto as a way to engage with fans. Despite her efforts to rebuild trust, the case has drawn comparisons to other memecoin controversies, such as the collapse of the Squid Game token, which also caused significant financial harm to investors.

Wolf Popper LLP and Burwick Law emphasized the broader implications of such cases in a joint statement on X, noting how institutional greed often exploits celebrity endorsements to manipulate markets, leaving everyday investors vulnerable. Welch’s involvement in the case continues to raise questions about the role of influencers in promoting speculative investments.