Hailey Welch’s Meme Coin, $HAWK, Clears SEC Investigation After Crash and Backlash

Hailey Welch, known for her viral “Hawk Tuah” video, has announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into her meme coin, $HAWK. The announcement follows months of cooperation between Welch and authorities after her token’s dramatic collapse.

The $HAWK Launch and Crash

In December 2024, Welch launched $HAWK on the Solana blockchain, tapping into the growing trend of meme coins. The token’s value skyrocketed to a market capitalization of approximately $500 million within hours, fueled by speculative trading and online hype. However, this rapid success was short-lived. Just minutes after peaking, $HAWK’s value plummeted by 95%, reducing its market cap to a mere $60 million.

This dramatic drop sparked outrage among investors, many of whom accused Welch and her team of orchestrating a “pump and dump” scheme. The crash raised alarms about the lack of oversight in the meme coin sector and the risks associated with such speculative investments.

Legal Fallout and SEC Investigation

Following the collapse, investors filed a class-action lawsuit against OverHere Ltd, the company behind $HAWK, and its promoters, alleging the unlawful promotion and sale of the token without proper registration. The legal action and the widespread backlash caught the attention of the SEC, leading to an investigation into whether any securities laws were violated.

Welch, who was accused of insider trading, has continuously denied the allegations. She maintained that neither she nor her team sold any $HAWK tokens. After months of cooperating with authorities, Welch confirmed that the SEC had closed the investigation, with no findings against her or any monetary sanctions imposed. This decision effectively cleared her name regarding any regulatory violations related to the token.

The SEC’s Stance on Meme Coins

The $HAWK incident has brought attention to the regulatory challenges surrounding meme coins. These tokens often gain value through marketing and social media hype rather than inherent utility or value. While the SEC has provided some guidance, it has stated that meme coins, in general, do not meet the criteria of securities and therefore fall outside the agency’s jurisdiction.

This lack of clear regulation presents a grey area for creators, investors, and regulators alike. The SEC’s decision to close the investigation without pursuing any charges reflects the complexities of regulating the meme coin market, which remains largely ungoverned and speculative in nature.

Welch’s Next Moves: Documentary and Future Projects

Despite the ongoing legal drama, Welch has chosen to move forward with her career. She revealed that she does not intend to promote $HAWK again, signaling the end of her involvement with the meme coin. Instead, her focus has shifted to a new project—a documentary profiling her rise to fame as the “Hawk Tuah” girl.

Produced by Bungalow Media + Entertainment, the documentary will explore Welch’s viral success and the fallout from her cryptocurrency venture. This new direction marks a shift for Welch, who had previously expressed regret over her limited understanding of the crypto world and the consequences of her involvement in the $HAWK launch.

The Current State of $HAWK

Although $HAWK’s initial surge and subsequent collapse have made it a case study in meme coin volatility, the token still sees some trading activity. Recently, $HAWK’s market cap has risen slightly to around $4 million, with a 25% increase in value reported on a decentralized exchange. Despite this modest recovery, Welch remains focused on her new ventures, leaving behind the failed cryptocurrency project.

Community Reaction

As expected, the crypto community was full of abuse and sarcasm on the comments section of the coin’s “What did I miss?” tweet.

• Tofu: “Congrats on your first successful rug pull and return to crypto twitter. We look forward to atleast 2 more scams before you retire in Bali.”
• DevilK: “Nice rug pull”
• Toony: “Prison. But @SweeperSolana is not exonerated”