Haliey Welch, the social media sensation famously dubbed the “Hawk tuah girl,” recently revealed that she was embroiled in an FBI investigation after her memecoin venture went awry. The saga unfolded after the ill-fated launch of Hawk Tuah (HAWK), a token inspired by Welch’s viral catchphrase, which tanked spectacularly, losing a staggering 90% of its value almost immediately.
The FBI Comes Knocking
Welch recounted the startling events during a May 21 episode of her “Talk Tuah” podcast. In a twist straight out of a thriller, FBI agents reportedly visited her grandmother’s home, seeking a conversation with Welch about the HAWK token. “After the coin launch, the feds came to granny’s house and knocked on her door,” Welch shared, adding that her grandmother was understandably shaken.
The FBI’s interest stemmed from allegations of insider trading and “sniping” that marred the token’s debut, with blockchain analytics firm Bubblemaps pointing fingers at unknown wallets manipulating the market. Despite the alarming visit, Welch asserted that after an interrogation and a thorough examination of her phone, she was exonerated.
A Comedy of Errors—or a Cautionary Tale?
In another layer of complexity, the Securities and Exchange Commission (SEC) also entered the fray, requesting Welch’s phone for further scrutiny. James Sallah, Welch’s attorney, later confirmed that the SEC’s investigation concluded without any charges against her.
Welch, candidly admitting her naivete, stated, “I trusted the wrong people,” underscoring her lack of crypto acumen before jumping into the HAWK memecoin. She disclosed that an unnamed company had orchestrated the token’s promotion, even controlling her X account (formerly Twitter), which led to her unwitting participation in its marketing.
This incident is part of a broader trend of crypto token failures, as highlighted in CoinGecko’s report on the soaring failure rates of tokens launched since 2021.
The Fallout and Lessons Learned
The fallout from the HAWK disaster has been both public and personal for Welch. On her podcast, she expressed remorse for misleading her fans—many of whom invested in the token—while clarifying that she did not profit from the venture. “It makes me feel really bad that they trusted me, and I led them to something that I did not have enough knowledge about,” Welch confessed.
The legal tumult doesn’t end with Welch. Disgruntled buyers of HAWK have filed a lawsuit against the token’s alleged creators, including Alex Schultz and Clinton So, asserting that HAWK was marketed as an unregistered security. However, Welch’s name is conspicuously absent from the list of defendants.
The debacle serves as a stark reminder of the volatile and often unscrupulous nature of the cryptocurrency market. It raises questions about the accountability of influencers and the due diligence required when endorsing financial products. This is reminiscent of other recent controversies, such as the Movement Labs scandal involving token dumping and delisting.
Looking to the Future
As Welch emerges from this ordeal, the broader crypto community is left to ponder the implications of her story. Will this cautionary tale curb the reckless promotion of memecoins? Or will the allure of quick profits continue to lure the unsuspecting? Only time will tell.
For now, Welch’s experience stands as a vivid lesson in the importance of transparency and informed decision-making in the crypto space. As the market evolves, both investors and influencers must tread carefully, lest they find themselves in similarly precarious positions.
Source
This article is based on: ‘Hawk tuah girl’ Haliey Welch says FBI probed her ‘memecoin disaster’
Further Reading
Deepen your understanding with these related articles:
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- Crypto losses spike 1,100% in April with 5th-largest-ever hack: CertiK
- Crypto Coalition Tells SEC Staking Is ‘Essential Good,’ Not a Security
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
