Outside Source
What brought the HAWK crypto scam to the limelight?
While there have been several scams around memecoins, what makes HAWK stand out is its association with Haliey Welch, widely known as “Hawk Tuah Girl.”
Welch, who gained popularity through social media and a successful podcast, launched HAWK in December 2024, promising it would draw regular people to the crypto world. But the project crashed by more than 91% just hours after the launch amid allegations of a pump-and-dump scheme.
When HAWK was launched, its market cap surged to $490 million but dropped to $60 million within hours, leaving many investors with massive losses. Crypto investigator Stephen Findeisen — aka Coffeezilla — accused Welch and her team of deliberately executing a classic pump-and-dump, where insiders artificially inflate a coin’s value before selling off their holdings.
“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,” Coffeezilla said in a video with 6 million views as of Feb. 19, 2025.
Welch and her team denied these allegations, insisting they didn’t sell any coins and blamed external market traders for the price crash. But blockchain analysis suggested that team members had been offloading tokens since the launch.
Disgruntled investors, some claiming to have lost life savings, voiced their anger on social media. A complaint was filed regarding HAWK with the US Securities and Exchange Commission (SEC). The wrath of investors forced her to disappear from social media until she made her now-infamous “copy-paste” X post. Whether Welch knowingly participated in a rug pull or was merely a victim of her crypto partners remains to be determined.
What is a rug pull?
In crypto, a rug pull is a scam where developers promote a project, draw investors, and then abruptly sell their tokens to make a profit at the expense of other investors, rendering the tokens useless. They may lock liquidity to create an impression of transparency and appear legitimate but then use loopholes to take home the funds.
Rug pulls can take several forms, such as:
Interested individuals should research the team, look for locked liquidity, review audit reports, and avoid projects with unknown developers or unrealistic promises to avoid rug pulls. While regulations are improving, rug pulls remain a serious threat in cryptocurrency, making it necessary for you to research thoroughly before investing in new coins.
Did you know? A single investor acquired a substantial portion (17.5%) of the total supply of HAWK, a purchase valued at $993,000. Within a few hours, they liquidated their holdings, realizing a $1.3 million profit.
Who is Hawk Tuah Girl, Haliey Welch?
Haliey Welch, better known as the “Hawk Tuah Girl,” shot to fame after a nine-second viral video where she humorously described an exaggerated way to spit. The 22-year-old from Belfast, Tennessee quit her job at a spring factory after the video took off.
Flaunting a can-do attitude and Southern American accent, she quickly capitalized on her internet stardom, launching a successful podcast, selling merchandise and making high-profile appearances.
Haliey Welch’s podcast, Talk Tuah With Haliey Welch, produced by Jake Paul’s company, has featured prominent guests like Mark Cuban, Wiz Khalifa and Whitney Cummings. Even Welch’s grandmother appeared in an episode titled “I Told Granny About Hawk Tuah.”
Talk Tuah quickly gained popularity, securing the number five spot on Spotify within weeks of its debut, surpassing several well-known podcasts. The show has resonated with audiences, attracting 202,000 subscribers on YouTube.
Beyond podcasting, Welch has built a strong digital presence, amassing 2.6 million followers on Instagram, 1.8 million on TikTok and 424,500 on X as of Feb. 19. She has also made notable public appearances, including a guest spot at a Zach Bryan concert and an interview on Bill Maher’s podcast.
In August 2024, she was invited to make the ceremonial first pitch at a New York Mets game. Expanding her ventures, Welch launched a Gen Z-focused dating app, Pookie Tools, in November, incorporating AI-driven matchmaking features.
But her rapid rise hit a major setback when she entered the crypto world.
Crypto endeavor of Hawk Tuah girl
OverHere is the team that partnered with the Hawk Tuah girl to sell the memecoin. It posted on X that HAWK would “redefine the crypto space” and present a “meaningful step in bridging mainstream audiences with the crypto world.” In an interview with Fortune, Welch insisted that HAWK was “not just a cash grab,” unlike other memecoins.
OverHere used Welch’s name prominently in promoting the HAWK memecoin, emphasizing her intention to unite her TikTok followers, podcast listeners, merchandise customers and charity supporters.
The HAWK team urged Welch’s fans to support the memecoin, suggesting that her followers would naturally appreciate memes. They positioned HAWK as a platform connecting Welch, her fans and meme culture.
Prior to launch, Welch told TMZ that HAWK was created to combat “imposters” using her popularity to promote their own cryptocurrencies and that it offered a valuable opportunity for her community to connect.
Did you know? Blockchain analytics firm Bubblemaps discovered that a staggering 96% of the HAWK token supply was held by a group of interconnected wallets. This concentration suggests a high likelihood of coordinated activity among these holders.
Welch denies pump-and-dump allegations; community disagrees
Welch’s legal team issued a denial of pump-and-dump accusations after a Coffeezilla video, clarifying that she could only realize proceeds from her HAWK token allocation upon sale and that only a small portion (3.5%) would be hers after paying her non-crypto team.
On Dec. 4, Welch addressed the allegations on her X account, stating that her team had not sold any tokens and that no key opinion leaders (KOLs) received free tokens. She attributed the price fluctuations of HAWK to external traders.
Contradicting Welch’s claim, a community note on her post alleged that some team members had been selling HAWK tokens since launch, even those received for free. Another community note on an OverHere post warned of HAWK’s speculative nature and advised thorough research.
Did you know? After the HAWK episode, law firms began advertising their services to victims of the scam. In a Dec. 5 post to X, Burwick Law stated that anyone who lost money on the memecoin could get informed by them about their legal rights.
Legal consequences Haliey Welch may face
Haliey Welch’s involvement with the HAWK token has placed her in legal jeopardy, following a pattern of SEC scrutiny of celebrity cryptocurrency endorsements.
This situation mirrors previous SEC actions against celebrities promoting cryptocurrencies without proper disclosure. Kim Kardashian was fined $1.26 million for an undisclosed EthereumMax promotion, and Logan Paul is facing a lawsuit over similar allegations, though he denies his involvement.
A former US Department of Justice prosecutor told Fortune that Welch could face civil or even criminal charges, depending on her knowledge and participation in the alleged scheme.
The HAWK token controversy underscores the legal risks associated with celebrity crypto promotions and the importance of transparency and disclosure. Such cases serve as a cautionary tale for those considering endorsing or promoting digital assets, emphasizing the need for thorough due diligence and adherence to securities laws.
This article first appeared at Cointelegraph.com News
