Hawk Tuah Girl Cleared After $400M HAWK Meme Coin Collapse Prompts FBI, SEC Investigation and Investor Lawsuits

Hailey Welch, widely recognized as the ’Hawk Tuah Girl’, became the public face of the $HAWK meme coin, which soared to a $400 million market cap before crashing over 90%. Following the crash, investors accused Welch of fraud and filed lawsuits seeking damages, while both the FBI and SEC launched investigations. Welch testified that she had little knowledge of cryptocurrency, received only a marketing fee, and that all promotions were managed and scripted by others using her social media. The investigations ultimately cleared her of wrongdoing, though she faced harassment and reputational harm. Investor lawsuits are now focused on the token’s creators, not Welch. The SEC has reiterated that meme coins are not classified as securities but has warned of enforcement action against misleading promotions and fraud. High-profile meme coin collapses like $HAWK and $LIBRA have deepened skepticism about celebrity-backed crypto projects, underscoring the need for transparency and due diligence. For crypto traders, this incident highlights the ongoing regulatory focus and heightened risk in the meme coin sector driven by influencer promotions.