- The SEC closed its investigation into Haliey Welch without taking legal action.
- Hailey Welch’s $HAWK token crashed by 93% after briefly reaching a $490 million cap.
- The SEC’s decision reflects challenges in regulating influencer-driven meme coins.
The U.S. Securities and Exchange Commission (SEC) closed its probe into the $HAWK token on Saturday. Haliey Welch, known as the “Hawk Tuah Girl,” announced that the regulatory agency had concluded their probe without pressing charges or imposing monetary sanctions. Notably, the Solana-based meme coin, $HAWK, lost 95% of its value minutes after launch. Despite reaching a $490M market cap, the token crashed within hours, prompting legal scrutiny, investor outrage, and a class-action lawsuit.
Sharp Rise and Sudden Collapse of $HAWK
Welch launched the $HAWK meme coin in December, leveraging her viral fame and massive online following. The token initially surged in value, reaching a market cap of $490 million, driven by viral momentum and online hype.
Consequently, the momentum vanished almost immediately. Within minutes, $HAWK dropped by 93%, triggering panic, outrage, and financial losses among early buyers. Critics pointed to a possible pump-and-dump operation, while blockchain analysts flagged warnings shared through her social media post and the OverHere website.
This triggered mass complaints leading to a class-action lawsuit against OverHere Ltd and its promoters. Plaintiffs alleged illegal promotion and unregistered sale of securities. Welch temporarily vanished from social platforms amid backlash and legal pressure.
SEC Closes Investigation Without Charges
In a statement to TMZ, Welch expressed relief over the case being dropped, stating, “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete.”
Welch’s attorney, James Sallah, added that the SEC had ended its probe “without making any findings against or seeking any monetary sanctions from Haliey.” Sources said she severed all ties with the LLC behind $HAWK and will not promote the token moving forward.
Moreover, the SEC’s approach shows an evolving stance on influencer-led digital assets. It also highlights the agency’s increasing selectiveness in how it applies securities laws to meme tokens. Although the decision has given respite to Welch, it has sparked mixed reactions online, with some users criticizing the SEC’s decision while others blamed investors for becoming victims.
Related:SEC Dismisses Cases Against Crypto.com and Leading Crypto Firms
What Does This Mean for Crypto Oversight?
The SEC’s decision may set a significant precedent in digital asset regulation, especially around celebrity involvement in unregulated meme coins.
While Welch will not face restrictions on future crypto or securities-related endeavors, the incident illustrates growing concerns around viral-driven tokens with little structure. Hence, this situation raises a pressing question: How far should regulators go in protecting users from influencer-backed cryptocurrencies with viral appeal but high volatility?
Additionally, sources indicate Welch is pivoting to other ventures, including a “Talk Tuah” podcast and a documentary, distancing herself from digital assets.
