SEC Drops Charges Against Hailey Welch
Hailey Welch, known for her connection to the controversial $HAWK token, has been cleared of any wrongdoing by the U.S. Securities and Exchange Commission (SEC) after a thorough investigation. The SEC decided against pressing charges against Welch regarding the $HAWK token's meteoric rise and subsequent crash.
SEC Investigation Concludes Without Charges
The SEC launched its investigation following the dramatic price drop of the $HAWK token. Initially boasting a market cap of $490 million, the token, linked to Welch’s online persona, experienced a decline of over 90%. Investors affected by the crash filed a lawsuit, alleging the token was promoted and sold without proper registration.
Hailey Welch, who fully cooperated with the investigation, expressed relief at the SEC's decision. Her attorney, James Sallah, confirmed the SEC closed the case without any findings against her, specifying no monetary penalties or restrictions on her future activities in cryptocurrency or securities.
$HAWK Token Controversy
Launched in December 2024, the $HAWK token rapidly gained attention due to its association with Welch's online fame. Its value soared before plummeting within hours, resulting in significant losses for early investors. This volatility triggered lawsuits and widespread criticism.
Legal action primarily targeted OverHere Ltd., the company behind the token, its founder Clinton So, and other project figures, not Welch herself. The token's creators' legal team faced accusations of failing to follow proper cryptocurrency launch procedures. Investors claimed the token was unregistered and promoted negligently. Despite these concerns, the SEC's investigation concluded without action against Welch.
Hailey Welch's Future Endeavors
Following the SEC investigation, Hailey Welch has announced her departure from the meme coin business, severing ties with the LLC responsible for $HAWK. She is pursuing new ventures, including a documentary about the $HAWK token’s rise and fall and focusing on her podcast, “Talk Tuah.” She also aims to support those affected by the cryptocurrency crash, working to uncover the truth and hold those responsible accountable.
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