Haliey Welch, widely known as the "Hawk Tuah Girl," has found herself at the centre of a cryptocurrency controversy that has left investors furious and demanding her whereabouts.
Welch, a 22-year-old social media influencer turned crypto entrepreneur, is cooperating with lawyers after her meme coin, Hawkcoin, plummeted from an initial valuation of £392 million ($500 million) to £20.6 million ($26.4 million) within days of its launch.
The Viral Fame That Sparked Controversy
Welch rose to internet stardom after a candid interview outside a nightclub went viral, leading to her "Hawk Tuah" moniker. Capitalising on her newfound fame, she ventured into social media, podcasting, and event appearances before delving into cryptocurrency.
Her Solana-based memecoin, trading under $HAWK, launched on 4 December 2024 and briefly achieved meteoric success. However, a sharp sell-off saw its value nosedive by 95%, leaving investors reeling from significant financial losses.
Allegations of Mismanagement and Fraud
Many investors have accused Welch of promoting a pump-and-dump scheme—a tactic where token values are artificially inflated before insiders sell off their holdings, leaving others with worthless assets.
According to data from Bubblemaps and Dexscreener, between 80% and 90% of $HAWK's supply was controlled by insider wallets and "snipers" at launch. One wallet allegedly purchased 17.5% of the token's supply for £808,000 ($993,000) before selling for a profit of £1.05 million ($1.3 million).
Coin Telegraph reported that overHere, the meme coin's launchpad, played a pivotal role in the token's chaotic rollout. Allegations also surfaced that Clinton So, founder of overHere, converted the Tuah Foundation—the entity behind Hawkcoin—into an offshore company to evade securities laws. So reportedly sold 17% of the token supply immediately after launch, further destabilising its price.
Haliey Welch's Response
Welch initially remained silent as backlash mounted. However, after weeks of social media inactivity, she issued a statement denying wrongdoing and urging affected investors to contact Burwick Law.
"I take this situation extremely seriously and am fully cooperating with the legal team to uncover the truth and hold the responsible parties accountable," Welch said in a post on X (formerly Twitter).
Welch's legal defence centres on claims that she had limited involvement in the token's operational decisions. "Team hasn't sold one token, and not one KOL was given a free token," Welch stated in an earlier interview with Fortune. Her representatives argue that automated bots manipulated the token price, and she was a victim of circumstances.
Lawsuits and Investor Losses
Court filings in New York reveal that investors who collectively lost £120,676 ($151,000) have sued the Hawkcoin team, including overHere and Alexander Larson Shultz, a key team member known as "Doc Hollywood." The lawsuit alleges that the token was marketed as a registered security, misleading buyers into believing it was a legitimate investment opportunity.
Shultz, a musician-turned-crypto enthusiast with connections to Canadian entertainer Howie Mandel, is accused of controlling all token-related decisions and evading accountability. overHere has distanced itself from Shultz, claiming he ignored transparency calls and mismanaged funds.
Public Backlash and Industry Implications
The fallout has been intense, with many investors taking to social media to express anger and disappointment. "Hailey Welch's flashy lifestyle blinded us to the risks," one investor lamented. Others have called for stricter regulations to prevent influencers from promoting high-risk investments without accountability.
The scandal has also reignited debates about the role of influencers in cryptocurrency. Welch's rise and drastic fall highlights the dangers of relying on social media figures for financial advice in an unregulated market.
Originally published on IBTimes UK
