- The SEC cleared Hailey Welch of any charges in the $HAWK token investigation.
- The $HAWK token hit a $490M market cap before crashing by 95% in minutes.
The U.S. Securities and Exchange Commission (SEC) has closed its investigation into Hailey Welch, popularly known as the “Hawk Tuah Girl.” The SEC found no evidence of wrongdoing related to the $HAWK meme coin collapse. Welch will not face any charges or monetary sanctions.
The $HAWK token, launched on the Solana blockchain, surged to a $490 million market cap before crashing by 95% within minutes. Investors accused the project of being a pump-and-dump scheme. However, the SEC clarified that meme coins do not qualify as securities, limiting its jurisdiction over such assets.
SEC’s Decision and Expert Opinions
Welch confirmed the SEC’s decision in a statement. “The investigation is closed, and I will not face any charges,” she said. Her attorney, James Sallah, reiterated that no sanctions or restrictions were imposed on her future involvement in crypto.
Former SEC lawyer Marc Fagel stated that the SEC’s closure of the case does not mean it found “no wrongdoing.” Instead, the agency determined it lacked jurisdiction. Legal expert James Murphy added that fraud cases, if any, could fall under criminal or state-level investigations.
Although Welch avoided SEC penalties, investors have filed a class-action lawsuit against the token’s creators. The lawsuit names OverHere Ltd., its founder Clinton So, influencer Alex Larson Schultz, and the “Tuah the Moon Foundation.” Plaintiffs allege unlawful promotion and sale of unregistered securities.
Welch gained internet fame in mid-2024 after a viral street interview. Her sudden popularity led to the launch of the $HAWK meme coin. The token initially soared in value but collapsed soon after, leaving many investors with losses.
Following the SEC’s decision, $HAWK’s price spiked 25% on the Meteora decentralized exchange. The token now has a market cap of $4 million and a 24-hour trading volume of $333,000.
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