What are the allegations against Hailey Welch? Viral Hawk Tuah girl accused of cryptocurrency scam

Hailey Welch, known as the "Hawk Tuah Girl," faces backlash after her meme coin, $HAWK, launched on December 4, 2024, crashed dramatically within hours. She launched $HAWK on the Solana blockchain at $0.005492, which quickly surged by over 900%. It reached a market cap of $490 million but plummeted by 91%, settling at $60 million, as per The Independent.

Investors and industry observers alleged insider trading and market manipulation, leading to accusations of a scam.

According to Crypto Times, the token's price decline was allegedly linked to insider wallets and "snipers" — entities buying large amounts at launch and selling quickly. Cointelegraph reported that one wallet bought 17.5% of the total supply, worth $993,000, and sold it for a $1.3 million profit.

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Insider trading and rug pull accusations on Hailey Welch

The controversy centers on allegations of a "pump-and-dump" scheme where coins are heavily promoted, artificially inflating their value. Insiders then sell off these coins for profit, leaving investors with devalued assets.

Community notes on social media suggested that the $HAWK team and insiders had been selling tokens since the launch. In addition, prominent figures, including YouTuber and investigator Coffeezilla, pressed Welch for answers, intensifying the scrutiny.

Denying these allegations, Hailey Welch, in a post on X (formerly Twitter), claimed:

"Our team hasn’t sold one token and not 1 KOL [Key Opinion Leader] was given 1 free token."

She added that efforts to prevent sniping through high launch fees were later reduced. Welch's manager, Jonnie Forster, told Fortune she owns 10% of $HAWK's supply but cannot sell it for a year.

According to Coinspeaker, an investor reportedly filed a complaint with the U.S. Securities and Exchange Commission (SEC) regarding the Hawk Tuah meme coin (HAWK) after it experienced significant volatility. Following a pump-and-dump scenario where HAWK's value dropped by over 90% shortly after launch, affected investors began seeking legal recourse.

Some confirmed contacting the SEC, while law firms also reached out to those who lost funds, suggesting potential legal action against alleged manipulation and insider activity, as per Coinspeaker.

These cryptocurrencies, often based on viral trends, could be highly volatile and susceptible to market manipulation due to their speculative nature and lack of inherent utility.

Born on July 13, 2002, in Tennessee, Hailey Welch rose to fame in June 2024 after a viral video from Nashville's CMA Fest. In a street interview, her humorous response involving the term "hawk tuah" and a distinctive spitting sound captivated social media users, which quickly spread across platforms.

Before her viral moment, Welch worked at a spring factory in Belfast, Tennessee. She left her job to pursue opportunities in entertainment, launching a podcast and merchandise line.

Hailey Welch's rapid ascent included throwing the first pitch at a New York Mets game and developing an AI-powered dating advice app, Pookie Tools. Her openness about her background, including being raised by her grandmother due to her mother's substance abuse issues, resonated with fans, contributing to her authenticity and popularity.