The Hawk Tuah girl could face potential charges following the cryptocurrency scandal, as fans reportedly lost their life savings in the process.
Hailey Welch, an influencer known as the “Hawk Tuah girl,” may face several criminal charges following the collapse of her cryptocurrency memecoin HAWK.
Hawk Tuah girl launched HAWK coin.
Previously, many viewers were shocked after Hawk Tuah girl announced the launch of HAWK coin
On December 4, Haliey Welch launched her cryptocurrency, HAWK, promising it was “not just a cash grab.”
In an interview with Fortune, her manager Jonnie Forster described the initiative as “tokenizing Haliey’s fan base.”
The project quickly gained traction, with the coin’s market capitalization reaching nearly $500 million shortly after its debut.
However, within 20 minutes, HAWK’s value plummeted dramatically from $490 million to just $41 million.
The sudden drop left fans and investors outraged, with some claiming to have lost their life savings
Fans accused Welch of orchestrating a “rug pull’
On social media, many accused Welch of orchestrating a “rug pull,” a scheme where creators sell their stock, causing the price to plummet and leaving investors with significant losses.
Additionally, someone claimed to have lost their life savings, leading some to demand that Welch be jailed for her actions.
Despite these claims, Welch has denied any wrongdoing, and authorities have not yet announced an official investigation.
Potential legal consequences for Hailey Welch
Legal experts are now speculating about the potential charges Welch could face if authorities decide to investigate further.
According to Yuriy Brisov, a partner at Digital and Analogue Partners, the U.S. Securities and Exchange Commission (SEC) could file civil charges for securities fraud.
These charges could arise from misrepresentation or deceit in the sale of securities, provided the incident qualifies under the Howey test.
Brisov also mentioned that the Department of Justice (DOJ) might consider criminal charges such as money laundering or wire fraud, depending on the evidence of financial misconduct.
Could Welch face insider trading charges?
The question of whether Welch’s actions qualify as insider trading is also under scrutiny. Brisov explained that insider trading typically involves trading based on non-public information.
If Welch’s team had prior knowledge about the coin’s launch or strategies to sell large amounts before the collapse, the actions could be examined under fraud or market manipulation laws.
Welch has refuted the allegations, stating on X that her team had not sold any tokens and that no key opinion leaders (KOLs) were given free tokens.
Despite Welch’s claims, data indicates that over 80 wallet addresses received tokens before the official launch. These addresses, which hadn’t purchased tokens initially, sold their holdings for profits ranging from $10,000 to $365,000.
While no formal investigations have been launched yet, the U.S. DOJ recently prosecuted the founder of the Bitcoin Fog crypto mixer, sentencing him to 12 and a half years in prison,
highlighting the potential legal consequences for cryptocurrency-related crimes.
At this point, Welch’s legal situation remains uncertain. If an investigation proceeds, she could face serious criminal charges depending on the findings.