SEC Clears "Hawk Tuah" Girl of Wrongdoing in $500M Meme Coin Crash

Haliey Welch, widely recognized as the “Hawk Tuah” girl, has been officially cleared of any wrongdoing by the U.S. Securities and Exchange Commission (SEC) following an investigation into her controversial meme coin, $HAWK. The SEC closed its probe without finding evidence of fraudulent activity or malicious intent on Welch’s part. The meme coin, which initially soared to a valuation of $500 million, experienced a dramatic 95% crash within just 20 minutes of its launch, leading to widespread criticism and accusations of a pump-and-dump scheme.

Welch confirmed the SEC’s decision in a statement, saying, “The investigation is closed, and I will not face any charges or monetary sanctions.” This outcome comes as the SEC has recently clarified its stance on meme coins, asserting that they do not qualify as securities. This clarification may have influenced the decision to close the investigation without pursuing charges. However, the regulatory landscape for meme coins remains contentious, with ongoing debates about investor protection and the potential for “rug pulls.”

Despite Welch’s exoneration, the crypto community remains divided on how to handle such volatile assets. The SEC’s decision not to pursue charges has sparked discussions about the regulatory oversight of meme coins and the broader implications for the crypto market. Experts have weighed in on the development, with former SEC lawyer Marc Fagel noting that the SEC did not explicitly state there was “no wrongdoing” but rather that meme coins are not considered securities, thus falling outside the SEC’s jurisdiction. James Murphy, also known as Metalawman, echoed this sentiment, stating that the SEC is focusing on its core responsibilities and that any fraud involved in the launch could be investigated by criminal prosecutors or state consumer protection agencies.

The closure of the investigation marks a significant moment for Welch and the broader crypto community. While Welch has been cleared of any wrongdoing, the incident highlights the risks and uncertainties associated with meme coins and the need for clearer regulatory guidelines. As the debate around meme coins continues, the crypto community will be watching closely to see how regulators and law enforcement agencies respond to future incidents involving these volatile assets.