Hailey Welch Faces Legal Troubles After Hawkcoin Crash
Hailey Welch, a 22-year-old influencer turned crypto entrepreneur, has found herself at the center of a major cryptocurrency scandal following the rapid collapse of her meme coin, Hawkcoin. Once valued at £392 million ($500 million), Hawkcoin plummeted to just £20.6 million ($26.4 million) in a matter of days, leaving countless investors with significant losses.
From Viral Fame to Crypto Entrepreneur
Welch first gained widespread attention after a viral interview outside a nightclub, which earned her the nickname “Hawk Tuah Girl.” Capitalizing on her newfound fame, she expanded her presence in social media, podcasts, and public events. In December 2024, Welch launched Hawkcoin, a Solana-based meme coin. Initially, the token saw impressive gains, but a sharp sell-off saw its value tumble by 95%, sparking outrage among investors.
Accusations of Fraud and Market Manipulation
Investors quickly accused Welch of orchestrating a pump-and-dump scheme, where the value of the token was artificially inflated, only for insiders to sell their holdings, leaving others with worthless assets. According to blockchain data from Bubblemaps and Dexscreener, between 80-90% of the coin’s supply was controlled by a select few wallets at launch. One wallet, allegedly purchasing 17.5% of the total supply for £808,000 ($993,000), later sold the tokens for a substantial profit.
Further accusations suggest that Clinton So, the founder of overHere (the launchpad for Hawkcoin), manipulated the rollout by converting the Tuah Foundation—the entity behind the coin—into an offshore company to bypass securities laws. Additionally, So reportedly sold 17% of the coin’s total supply immediately after launch, further destabilizing the market.
Welch Responds to Backlash
As the scandal unfolded, Welch initially refrained from public comment. However, after weeks of silence, she addressed the controversy through social media, denying any intentional wrongdoing and vowing full cooperation with legal authorities. In a post on X (formerly Twitter), Welch stated, “I take this situation extremely seriously and am fully cooperating with the legal team to uncover the truth and hold the responsible parties accountable.”
Her defense claims that she had minimal involvement in the operational aspects of the token and that automated bots were responsible for manipulating the price. Welch further denied claims that her team sold any tokens or distributed free coins to key opinion leaders (KOLs), asserting that she had been a victim of unforeseen circumstances.
Legal Battles and Investor Lawsuits
Court documents reveal that investors who collectively lost over £120,676 ($151,000) have filed a lawsuit against the Hawkcoin team, including overHere and Alexander Larson Shultz, known as “Doc Hollywood.” The lawsuit alleges that the token was marketed as a registered security, misleading investors into believing it was a legitimate investment. Shultz, a musician-turned-crypto enthusiast, is accused of controlling all token-related decisions and evading accountability. overHere has distanced itself from Shultz, accusing him of mismanaging funds and ignoring calls for transparency.
Public Outrage and Industry Fallout
The scandal has sparked intense backlash from investors, many of whom have voiced their frustration on social media. One investor stated, “Hailey Welch’s flashy lifestyle blinded us to the risks,” reflecting the anger felt by those who believe they were misled by Welch’s public persona. The incident has also fueled calls for stricter regulations on cryptocurrency and influencer-promoted investments.
This controversy has reignited debates over the role of social media influencers in the crypto space. Welch’s rapid rise and subsequent fall have underscored the risks of relying on unregulated figures for financial advice, highlighting the need for greater accountability in the crypto industry.