Haliey Welch, popularly known as the “Hawk Tuah” girl, has officially been cleared of any wrongdoing after the U.S. Securities and Exchange Commission (SEC) closed its investigation into her controversial meme coin, $HAWK.
Despite the token’s dramatic 95% crash just hours after its launch, regulators found no evidence of fraudulent activity or malicious intent on Welch’s part. The once-hyped memecoin skyrocketed to a staggering $500 million valuation before plummeting below $60 million in a matter of 20 minutes, sparking widespread criticism and accusations of a pump-and-dump scheme.
In a statement, Welch confirmed the SEC’s decision, stating, “The investigation is closed, and I will not face any charges or monetary sanctions.”
The SEC recently clarified its stance, asserting that meme coins do not qualify as securities, which may have influenced the outcome. However, the debate around regulatory oversight continues, with concerns about “rug pulls” and investor protection remaining central. Though Welch walks away unscathed from the SEC’s scrutiny, the crypto community remains divided on how to handle such volatile assets.
What Experts Are Saying?
Former SEC lawyer Marc Fagel commented on the development and said, “The SEC did not find “no wrongdoing.” That’s not something the SEC ever says when closing an investigation. Rather, the current administration has declared meme coins are not securities, and thus the SEC has no jurisdiction.”
James Murphy, also known as Metalawman, said it’s no surprise. Meme coins are typically not considered securities, so the SEC has no jurisdiction. The SEC is focusing on its core responsibilities these days. If fraud was involved in the launch, it could be investigated by criminal prosecutors or state consumer protection agencies.
