Hawk tuah girl Haliey Welch says FBI probed her memecoin disaster

‘Hawk Tuah Girl’ Haliey Welch Faces FBI Inquiry After Memecoin Launch

Haliey Welch, famously known as the “Hawk tuah girl” after a viral interview, found herself in the crosshairs of the FBI following the troubled launch of a memecoin in her name. The situation highlights the risks and complexities involved in the rapidly evolving world of crypto, especially concerning celebrity endorsements and new digital assets. This incident underscores the growing scrutiny surrounding crypto regulation and the potential pitfalls for those entering the space without adequate knowledge.

The FBI Investigation

According to Welch on her “Talk Tuah” podcast, the FBI visited her grandmother’s house to speak with her about the Hawk Tuah (HAWK) crypto token. Crypto commentators have widely criticized the token launch, with some labeling it an exit scam. Welch cooperated with the investigation, handing over her phone and answering questions from the agents. Ultimately, she stated that she was cleared of any wrongdoing.

Welch recounted the experience on her podcast:

“After the coin launch, the feds came to granny’s house and knocked on her door, and she called me, having a heart attack, saying: ‘The FBI is here after you, what have you done?’”

SEC Involvement and Legal Clearance

In addition to the FBI, the Securities and Exchange Commission (SEC) also requested access to Welch’s phone. Her lawyer, James Sallah, later confirmed that the SEC concluded its investigation without taking any action against her. As reported by TMZ, the SEC “closed the investigation without making any findings against, or seeking any monetary sanctions from, Haliey.”

The HAWK Memecoin Debacle

The HAWK memecoin, inspired by Welch’s viral catchphrase, experienced a dramatic crash shortly after its launch in December. The token quickly lost 90% of its value, prompting allegations of insider trading and market manipulation. Blockchain analytics firm Bubblemaps suggested that insider wallets had engaged in buying and dumping large quantities of the token.

Welch’s Perspective: Trusting the Wrong People

Welch admitted to being largely unfamiliar with crypto before the HAWK memecoin project. She claimed to have relied on others for guidance, stating that she “trusted the wrong people.” According to Welch, a company had control over her X account, posting promotional videos that she was instructed to record. She also described being caught off guard during a livestream with YouTuber Coffeezilla, who she felt unprepared to engage with.

Welch maintains that she only received a marketing fee and did not profit from the coin itself, adding that the funds were used for legal and public relations expenses.

Investor Lawsuit and Accountability

Despite being cleared of legal wrongdoing, Welch acknowledged the disappointment of her fans who invested in the HAWK token. She admitted to lacking sufficient knowledge about crypto and expressed regret for involving her followers in something she didn’t fully understand.

“It makes me feel really bad that they trusted me, and I led them to something that I did not have enough knowledge about. I did not have enough knowledge about crypto to be getting involved with it. And I knew that, but I got talked into it, and I trusted the wrong people.”

A group of HAWK investors filed a lawsuit against the alleged creators of the token, accusing them of promoting and selling HAWK as an unregistered security. Welch was not named as a defendant in the lawsuit. The original news was reported by Cointelegraph.

In Conclusion

The Haliey Welch memecoin saga serves as a cautionary tale about the risks associated with celebrity-endorsed crypto projects and the importance of due diligence in the crypto space. The involvement of regulatory bodies like the FBI and SEC highlights the increasing scrutiny of crypto projects and the potential legal ramifications for those involved. For investors, it reinforces the need to thoroughly research any crypto investment, regardless of its public profile or celebrity backing. This also underscores the importance of crypto regulation for consumer protection.