Hailey Welch Avoids Charges: SEC Investigation Into $HAWK Token Concludes

The U.S. Securities and Exchange Commission has closed its investigation into Hailey Welch, the internet personality behind the viral “Hawk Tuah” phenomenon, determining that she will not face criminal or civil charges related to the $HAWK token collapse. Despite investors facing massive losses and subsequent legal action from affected parties, Hailey Welch’s legal standing has been clarified following months of regulatory scrutiny.

SEC Ruling: No Charges Filed Against Hailey Welch

Hailey Welch confirmed the SEC’s decision through an official statement, saying, “The investigation is closed, and I will not face any charges.” Her attorney, James Sallah, emphasized that no sanctions, restrictions, or future compliance obligations were imposed on her involvement in cryptocurrency ventures. This outcome stands in stark contrast to the significant turbulence surrounding the $HAWK token’s market performance.

The decision hinges on a critical legal distinction: the SEC determined that meme coins do not qualify as regulated securities, which severely limits the agency’s jurisdiction over such assets. Former SEC lawyer Marc Fagel clarified that the investigation’s closure does not necessarily mean no wrongdoing occurred—rather, it reflects the regulatory agency’s inability to legally pursue the matter under its existing framework.

The $HAWK Token’s Dramatic Rise and Fall

The $HAWK token launched on the Solana blockchain in mid-2024, following Hailey Welch’s sudden internet fame from a street interview that went viral. The token initially surged to an impressive $490 million market capitalization before experiencing a catastrophic 95% collapse within minutes. This sharp downturn sparked immediate accusations from investors who alleged the project operated as a coordinated pump-and-dump scheme designed to artificially inflate and then dump prices.

Despite these allegations, regulatory action against Hailey Welch was ultimately deemed unfounded. Interestingly, following the SEC’s announcement, $HAWK’s price rebounded by 25% on the Meteora decentralized exchange, suggesting market participants viewed the investigation’s closure as positive news.

Investors Pursue Legal Action Against Token Creators

While Hailey Welch was cleared, the legal battle continues for other parties involved. A class-action lawsuit has been filed against the token’s creators, specifically targeting OverHere Ltd., its founder Clinton So, influencer Alex Larson Schultz, and the Tuah the Moon Foundation. Plaintiffs allege unlawful promotion and sale of unregistered securities, distinguishing these defendants from Hailey Welch’s individual position.

Legal expert James Murphy noted that fraud allegations, if substantiated, could potentially fall under criminal investigation or state-level regulatory jurisdiction, even if the SEC lacks authority over meme tokens themselves. This highlights the fragmented nature of cryptocurrency oversight across different regulatory bodies.

Current Token Status and Industry Implications

As of early 2025, the $HAWK token now trades at a significantly reduced market cap of approximately $4 million with 24-hour trading volumes around $333,000. The SEC’s decision carries broader implications for the crypto industry, establishing that viral meme coins operate outside federal securities regulation, effectively carving out a category of digital assets beyond SEC oversight.

The case demonstrates the complex legal landscape surrounding cryptocurrency, where initial regulatory action does not always translate into charges against all participants. Hailey Welch’s exoneration reflects the specific role she played versus the deeper questions surrounding the token’s creation and promotion by other parties.