Haliey Welch, Popularly Known as the “Hawk Tuah” Girl, Has Been Cleared of Any Wrongdoing

Haliey Welch, popularly known as the “Hawk Tuah” girl, has officially been cleared of any wrongdoing after the U.S. Securities and Exchange Commission (SEC) closed its investigation into her controversial meme coin, $HAWK.

Haliey Welch, widely recognized as the “Hawk Tuah” girl and subject of a U.S. Securities and Exchange Commission (SEC) probe, has been officially cleared of any wrongdoing.

The SEC has closed its investigation into the controversial meme coin, $HAWK, which was created by Welch and saw a 95% crash just hours after its launch.

What Happened?

Earlier this year, a new meme coin named $HAWK was launched by Haley Welch, who is also known for her role in the comedy troupe "Tuah's Paycheck." The token rapidly gained attention and achieved an impressive $500 million valuation. However, within a matter of 20 minutes, the price plummeted to less than $60 million, sparking criticism and accusations of a pump-and-dump scheme.

Those who invested early in $HAWK, enticed by its initial hype, faced significant losses as the token's value evaporated. Zoom in on the price action of $HAWK in the chart below. The token rapidly rose to a peak valuation of $500 million before plummeting to $50 million in 20 minutes.

Credit: Benzinga

Those who invested early in $HAWK, enticed by its initial hype, faced significant losses as the token's value evaporated. Zoom in on the price action of $HAWK in the chart below. The token rapidly rose to a peak valuation of $500 million before plummeting to $50 million in 20 minutes.

Despite the token’s dramatic 95% crash just hours after its launch, regulators found no evidence of fraudulent activity or malicious intent on Welch’s part.

What Is Being Said?

“The investigation is closed and I will not be charged with any wrongdoing or face any monetary sanctions,” said Haley Welch.

Recently, the SEC clarified its stance, stating that meme coins do not qualify as securities, which may have influenced the outcome.

However, the debate around regulatory oversight continues, with concerns about “rug pulls” and investor protection remaining central. Although Welch walks away unscathed from the SEC’s scrutiny, the crypto community remains divided on how to handle such volatile assets.

“The SEC did not find "no wrongdoing." That's not something the SEC ever says when closing an investigation. Rather, the current administration has declared meme coins are not securities, and thus the SEC has no jurisdiction,” said former SEC lawyer Marc Fagel.

James Murphy, also known as Metalawman, said it’s no surprise. Meme coins are typically not considered securities, so the SEC has no jurisdiction. The SEC is focusing on its core responsibilities these days. If fraud was involved in the launch, it could be investigated by criminal prosecutors or state consumer protection agencies.