Haliey Welch, also known as the "Hwak Tuah Girl", is a 22-year-old viral sensation from Tennessee who rose to fame in 2023 through a TikTok moment. Recently, she has faced allegations of being involved in a cryptocurrency pump-and-dump scheme tied to the $HAWK token. While the token’s value collapsed, leading to investor lawsuits and SEC complaints, Welch denies any wrongdoing and has not been arrested. Legal cases are ongoing, and Welch claims to be cooperating with investigations.
Key Points:
- Viral Fame: Known for her Southern charm, Welch gained millions of followers and launched a podcast.
- Crypto Controversy: Accused of promoting a token that dropped 95% in value shortly after launch.
- Legal Status: No arrest; lawsuits target other parties involved in the token project.
- Investor Losses: $HAWK investors claim over $151,000 in damages.
This case highlights the risks of celebrity-backed cryptocurrency ventures and the importance of due diligence.
Hawk Tuah Girl Allegedly Scammed Millions In Crypto Pump And Dump
Main Accusations and Claims
Suspected Financial Fraud
Haliey Welch is under scrutiny for her involvement in the $HAWK token launch, which has been accused of being a pump-and-dump scheme. The token’s market cap reportedly skyrocketed from $490 million to just $60 million in a matter of 20 minutes .
The case gained widespread attention after cryptocurrency investigator Coffeezilla released a viral exposé, which has amassed over 6 million views as of February 19, 2025 . According to the investigation, 96% of the HAWK token supply was controlled by a network of closely linked wallets, a finding backed by Bubblemaps analysis .
One notable transaction involved an investor who purchased 17.5% of the token supply for $993,000 and then sold it within hours, pocketing a $1.3 million profit . These revelations triggered both public outrage and legal actions.
"Unfortunately with situations like this, they’re not targeting crypto bros, they’re mostly targeting actual fans who have never been involved in the crypto space before", said Coffeezilla in his investigation .
Community Response
The crypto community responded quickly and decisively. Investors filed a federal lawsuit in New York, seeking over $150,000 in damages, arguing that the token was an illegal, unregistered security . A formal complaint was also submitted to the SEC, and several law firms began offering services to those who claim to be victims of the alleged scheme .
As legal pressures mounted, opinions about Welch’s role in the controversy became divided. Welch has denied any wrongdoing, asserting that her "Team hasn’t sold one token" . However, blockchain analysis casts doubt on her statement. The overHere team, which is linked to the project, issued a statement defending their actions:
"We have been extremely transparent about the limited scope and extent of our involvement in the Hawk Tuah token project. We are confident that we have done nothing wrong" .
Mark Cuban provided another angle, suggesting Welch may have been misled:
"It wasn’t something she fully understood. But she trusted the people around her" .
This controversy has ignited heated discussions within the crypto world. Many have voiced concerns about inexperienced investors being targeted, turning the case into a cautionary tale about the dangers of celebrity-backed cryptocurrency ventures and the need for careful research when investing in digital assets.
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Current Legal Status
Arrest Status Update
Despite viral claims circulating on X, there is no verified evidence to support the claim that Haliey Welch has been arrested. Allegations on X suggesting she was detained for securities fraud, wire fraud, and espionage have been debunked as false . No credible sources have confirmed any arrest occurring in the United States.
Community notes on X, along with fact-checking platforms, have clarified that these claims lack any basis .
"I take this situation extremely seriously and am fully cooperating with the legal team to uncover the truth and hold the responsible parties accountable" – Haliey Welch
While the arrest rumors have been proven false, legal matters related to the token launch are still ongoing.
Active Legal Cases
Although Welch has not been arrested, legal action regarding alleged unregistered securities is progressing. A lawsuit was filed on December 19, 2024, in the Eastern District of New York . Key details of the case include:
| Legal Action Details | Information |
|---|---|
| Court Venue | Eastern District of New York |
| Primary Defendants | Tuah The Moon Foundation, Overhere Ltd., Clinton So, Alex Larson Schultz |
| Number of Plaintiffs | 17 investors |
| Claimed Damages | Over $151,000 collectively |
| Primary Allegation | Sale of unregistered securities |
Notably, Welch is not listed as a defendant in this case . Attorney Scott Armstrong of McGovern Weems in New York stated that Welch is "trying to cooperate and trying to cast herself as the victim" .
The case remains active, with Welch continuing to work with legal representatives to address the situation and uncover the facts .
"I am fully cooperating with and am committed to assisting the legal team representing the individuals impacted, as well as to help uncover the truth, hold the responsible parties accountable, and resolve this matter." – Haliey Welch
Cryptocurrency Connection
$HAWK Token Analysis
The $HAWK memecoin, launched on December 5, 2024, on the Solana blockchain, is a cautionary tale about the unpredictable nature of memecoin investments:
| Timeline | Market Events | Price Points |
|---|---|---|
| Dec 5, 2024 (Launch) | Market cap reached $490M | $0.04916 |
| Dec 6, 2024 (Afternoon) | 95% market cap drop to $25M | $0.002439 |
| Late Dec 2024 | Further decline | $0.00054 |
A closer look at the token’s distribution revealed troubling patterns. For instance, one wallet acquired 17.5% of the total $HAWK supply within seconds of the launch, only to sell off quickly. This suggests possible market manipulation .
The project itself had some questionable structural elements:
- A $125,000 initial promotion payment to Welch, with a promise of 50% of net trading proceeds.
- A 10% token supply allocation locked for one year.
- A promised but unfulfilled $200,000 additional payment .
"We don’t want to break securities laws. We would say that we’re almost, like, tokenizing, in a sense, Haliey’s fan base." – Jonnie Forster, Welch’s manager
These issues, combined with the token’s sharp price swings, highlight the risks associated with such ventures.
Risk Management Tips
To avoid similar pitfalls, investors can take these precautions:
| Risk Factor | Prevention Strategy |
|---|---|
| Token Distribution | Use a block explorer to identify concentrated holdings. |
| Smart Contract | Confirm the official contract address before making transactions. |
| Project Timeline | Research the token’s history and development plans. |
| Promotion Patterns | Be cautious of over-the-top social media campaigns. |
The $HAWK case also brings attention to vulnerabilities in the DeFi space. Notably, the project partnered with the web3 launchpad overHere rather than established memecoin platforms like Pump.fun, which introduced additional risks tied to centralization . Investors should always verify token legitimacy through official sources and approach celebrity endorsements with skepticism. In this instance, the early public release of HAWK’s contract address allowed bots to exploit the launch, showcasing how technical knowledge can be misused in the crypto market .
This incident is a stark reminder that even projects with strong initial momentum can collapse. A lawsuit claims that 16 plaintiffs collectively lost around $151,000, underlining the financial dangers of hasty investment decisions .
Conclusion: Current Situation
Safety Tips for Crypto Trading
The Hwak Tuah Girl case serves as a reminder of the importance of security for cryptocurrency traders. Here are some key steps experts recommend to protect your assets:
| Security Aspect | Implementation Steps | Risk Mitigation |
|---|---|---|
| Wallet Security | Use hardware wallets for large holdings, remove funds from compromised wallets | Helps block unauthorized access |
| Transaction Verification | Double-check dapp requests before approval, verify contract addresses | Reduces exposure to harmful smart contracts |
| Due Diligence | Research project history, review token distribution, and confirm team credentials | Flags potential scams |
| Risk Management | Monitor wallet permissions and report suspicious activities | Limits potential financial losses |
"Sadly, this is one of many memecoin cases where institutional greed has exploited celebrities and their influence to harm everyday people." – Wolf Popper LLP and Burwick Law
In addition to these precautions, recent legal updates highlight just how unpredictable crypto investments can be.
Legal Developments
The Hwak Tuah Girl case continues to unfold, with several important updates:
- Investors have filed a lawsuit in New York against the Hawkcoin team, including overHere and Alexander Larson Shultz, seeking $151,000 in damages .
- The $HAWK token has plummeted in value, now trading at $0.000125 .
- At launch, insider-controlled wallets held 80-90% of the token supply .
These developments illustrate the dangers of market manipulation in the crypto space. For investors, this case is a stark warning about the risks tied to meme coins. As investigations progress, it’s crucial to approach such projects with extreme caution and carry out in-depth research before getting involved.
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