$400 million vanished as the Hawk Tuah meme coin imploded—Hailey Welch, better known as the "Hawk Tuah Girl," revealed on the May 21 episode of her "Talk Tuah" podcast that she was investigated by the FBI and federal agents came to her grandmother's house, thrusting the viral star into the crosshairs of an escalating crackdown on influencer-backed tokens.

Welch Cleared by SEC in HAWK Token Probe

The HAWK token was launched in December 2023 by Welch's team in collaboration with launchpad platform OverHere Limited. It came at a time when the meme coin market was booming.

The token briefly reached a market cap of $400 million before collapsing by over 90%. Blockchain analytics firm Bubblemaps flagged suspicious activity, claiming that insider wallets and snipers sold large amounts of the token shortly after launch.

"After the coin launch, the feds came to granny's house and knocked on her door," she said. "She called me, having a heart attack, saying: ‘The FBI is here after you, what have you done?'"

Welch said she met with agents and handed over her phone for investigation. "They interrogated me, asking me questions and everything else related to crypto," she said. "They cleared me, I was good to go."

Welch, who rose to internet stardom in June 2023 for her off-the-cuff answer in a viral street interview, said she had no experience in crypto before being pulled into the token project.

"I trusted the wrong people," she said. "I did not have enough knowledge about crypto to be getting involved with it. And I knew that."

She said her social media account was controlled by others during the token's promotion and that she was given pre-written lines to record.

These videos were posted without her direct involvement, she claimed.

"I was sent lines to read, and someone I trusted posted them," Welch said, adding that legal restrictions prevent her from naming the people or company involved.

Welch Says She Was Unprepared and Regretful

On the day of the launch, Welch recalled being rushed into a room and told to join a livestream with YouTuber Stephen Findeisen, better known as Coffeezilla.

"Nobody warned me about this guy at all," she said. "They didn't tell me he was like a crypto wizard—that's exactly what he is. He ate me the f**k up."

Welch also said the U.S. Securities and Exchange Commission briefly took her phone during its own inquiry.

Her lawyer told TMZ in March that the SEC had closed its investigation without pursuing any charges or sanctions against her.

Welch said she received a marketing fee but did not profit from the token itself. All earnings, she added, were spent on legal and PR costs.

Despite being cleared of any wrongdoing, Welch expressed regret for her involvement.

"It makes me feel really bad that they trusted me, and I led them to something that I did not have enough knowledge about," she said. "I let a lot of people down."

HAWK investors filed a lawsuit in December 2023 against several parties allegedly behind the token, including Alex Schultz, the Tuah the Moon Foundation, OverHere Limited, and its founder, Clinton So.

Welch was not named as a defendant.

Meme Coin Fallout Deepens as Investor Lawsuits and Market Scandals

The broader meme coin market, once the standout sector of the 2024 bull run, has since soured. A wave of scandals, from insider trading allegations to outright rug pulls, has eroded trust.

One of the most damaging incidents, dubbed "Libragate," involved LIBRA, a token whose price soared following public support from Argentine President Javier Milei.

The hype quickly collapsed, wiping out over $120 million in market value. Roughly 86% of holders lost over $1,000, sparking allegations of fraud and coordinated dumping.

Amid the chaos, the SEC issued a statement in February 2024 confirming that meme coins don't meet the definition of securities.

Still, it warned that deceptive practices tied to them remain subject to enforcement.

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