- Haliey Welch (‘Hawk Tuah’) claims SEC closed HAWK meme coin probe (no penalty)
- Claim currently unconfirmed by the SEC; follows HAWK’s boom and bust cycle
- Legal experts note SEC jurisdiction issues with non-security meme coins
Haliey Welch, better known as the “Hawk Tuah girl,” has claimed the U.S. Securities and Exchange Commission (SEC) has closed its investigation on her and the HAWK meme coin without pursuing any enforcement actions.
However, the SEC themselves have not commented or confirmed this claim. The assertion follows the HAWK token’s meteoric rise to a reported $500 million market cap before crashing below $60 million, causing significant losses for many investors and attracting regulatory attention. Welch announced the alleged probe closure via comments made to TMZ.
Welch told TMZ, “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete.”
Why Does the Claimed Outcome Spark Controversy?
Welch’s assertion that she faces no legal consequences related to the HAWK token’s dramatic boom and bust has drawn controversy within the crypto community.
Many have now questioned how Welch can walk away without legal consequences despite the financial losses faced by investors. Critics argue that the situation shows a gap in regulatory oversight, especially when it comes to high-risk projects like meme coins.
Welch’s lawyer James Sallah added, “The SEC closed the investigation without making any findings against, or seeking any monetary sanctions from, Haliey. Because they did not bring any action against her, there are no restrictions on what she can do in regards to crypto or securities in the future.”
Related: Black Friday for Longs? $253 Million Wiped Out in 24 Hours over Binance News
SEC Jurisdiction Limited for Meme Coins, Analyst Explains
Legal analyst James Murphy (known online as “MetaLawMan”), suggested that if the SEC probe was closed without action, it wouldn’t necessarily be surprising.
Meme coins are generally not classified as securities, which means the SEC doesn’t have jurisdiction over them. He said that the agency is focusing on its core responsibilities, and if fraud was involved, it could be investigated by criminal prosecutors or state consumer protection agencies.
For background, the SEC itself recently clarified that most meme coins don’t meet the criteria for investment contracts it regulates, based on established Supreme Court precedent.
Related: Gemini, Binance Breach Claims Surface: Is Your Crypto Account Data at Risk?
While Welch and her lawyer claim the SEC matter is concluded favorably for her, the absence of official agency confirmation leaves the final status unclear.
For now, Welch remains free of legal trouble, leaving the HAWK saga as yet another controversial chapter.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
