'Hawk Tuah' Girl Haliey Welch Breaks Down in Tears in First Podcast Back After Being Accused of 'Rug Pulling' Her Supporters in an Alleged Crypto Scam

Her $Hawk token had a $490 million market cap before crashing by over 95%

Haliey Welch, who became famous online as the "Hawk Tuah girl," started crying in her first podcast episode since being accused of "rug pulling" her supporters in an alleged crypto scam. Her $Hawk token, which was marketed as a community-first, playful memecoin, had a $490 million market cap before crashing by over 95%. Welch, who is not named in the investors' class-action lawsuit, insisted she had "no bad intentions" and was "tricked" by those overseeing the project.

After the launch of the $Hawk token on December 4, 2024, and its rapid price increase, investors quickly realized something was amiss when the token collapsed in a matter of minutes. The value of the token plummeted over 95%, wiping out millions in assets. What was once a marketplace valued at nearly half a billion dollars had now shrunk to $41 million.

Accusations of a "pump-and-dump" scheme, in which insiders cause a price increase in a coin, then sell at its value, quickly arose. Coffeezilla, a well-known cryptocurrency journalist, also accused those involved of insider trading and possibly manipulating investors. Most suspected Welch and her team of having gotten everyone to believe that the project existed.

Welch, however, denied any wrongdoing, claiming she was misled by those overseeing the project. Despite her public statements, most investors remained skeptical, calling for accountability and financial restitution.

The failure of $Hawk led to a storm of lawsuits, with investors filing legal complaints in rapid succession. Several entities involved in creating the token were sued by investors. OverHere Ltd., Tuah The Moon Foundation, and key persons such as Clinton So and Alex Larson Schultz were sued for fraud in offering and selling an unregistered security.

Interestingly, Welch herself was not included in the suit, but she faced a lot of backlash in the public sphere, with many holding her responsible for using her web success to generate financial reward at the expense of her followers.

Welch responded to the controversy by going silent. She took down her podcast, "Talk Tuah," deleted promotional tweets for $Hawk, and vanished off social media, avoiding press and public appearances for several months.

Despite Welch's silence, speculations about her involvement in the $Hawk scandal continued unabated. However, that changed in early 2025 when a leaked episode of her podcast with YouTuber FaZe Banks was posted. In a tearful audio, Welch discussed the scandal for the first time ever.

"I never planned for any of this to have happened. I thought I was part of a group that would be exciting for my followers," she said, her voice trembling with emotion. "I lost as much as everyone else."

She also added that all of the proceeds from the podcast episode would go towards charities for animals recently displaced and affected by fires, in a seeming attempt to deflect controversy and steer discussion towards philanthropy. While her return received a mixed reaction, with many empathizing with her and others speculating whether her outburst of emotion was a calculated move to revamp her tainted image.