Hawk Tuah Girl Cleared by FBI and SEC After Token Scandal

Although cleared of wrongdoing, Welch admitted she lacked crypto knowledge and was misled by the token’s organizers. In a separate scandal, Argentine President Javier Milei shut down the task force probing the LIBRA meme coin collapse, which he promoted. Meanwhile, Tron founder Justin Sun confirmed that he holds the top wallet in Trump’s TRUMP token, securing a seat at a private dinner with the president. Sun has been a target of ethical concerns due to his close political ties and paused SEC case. HAWK Collapse Led to FBI Visit Haliey Welch, who is widely known as the “Hawk tuah girl,” revealed that the Federal Bureau of Investigation (FBI) briefly investigated her after the failed launch of the Hawk Tuah (HAWK) meme coin. On the May 21 episode of her “Talk Tuah” podcast , Welch explained how the FBI showed up at her grandmother’s house, prompting a panic-stricken call from her family. Welch stated that she voluntarily handed over her phone and met with federal agents who questioned her about the coin. Ultimately, she was cleared of any wrongdoing. Welch’s involvement in the HAWK token began in early December, when the coin launched and quickly plummeted in value. In fact, the crypto lost about 90% of its value shortly after hitting the market. Blockchain analytics firm Bubblemaps flagged suspicious activity surrounding the launch, and alleged that insider wallets and snipers bought up large amounts of HAWK and dumped them for profit. As a result, many people called the launch an exit scam. In her podcast, Welch shared that the Securities and Exchange Commission (SEC) also requested access to her phone, which she submitted for a couple of days before the regulator concluded its investigation. According to her lawyer James Sallah , the SEC officially closed the inquiry without imposing any charges or monetary sanctions against her. Welch admitted she had very limited knowledge of the cryptocurrency space and said she regretted trusting a group of unnamed people who orchestrated the token’s launch. She alleged that a company controlled her X account and posted promotional videos on her behalf. She was reportedly sent scripts to record, which were then used to promote the HAWK token without her full understanding of the implications. On the day of the coin’s launch, Welch said she was abruptly directed into a livestream conversation with YouTube investigative journalist Stephen Findeisen,who is also known as Coffeezilla. She said she was caught off guard by the encounter, unaware of Coffeezilla’s reputation for uncovering crypto scams, and recalled being told to mute the stream mid-conversation. Despite the controversy, Welch made sure to mention that she received only a marketing fee for her participation and did not profit from the token’s trading. She claimed all her earnings were spent on legal and public relations expenses. Welch accepted partial responsibility, and also acknowledged the disappointment of her fans who trusted her endorsement of the coin. Welch was not named in a lawsuit that was filed in December by a group of HAWK token buyers against the alleged creators and promoters of the coin. The legal action targets Alex Schultz, the Tuah the Moon Foundation, overHere Limited, and its founder Clinton So, and accuses them of selling HAWK as an unregistered security. While Welch escaped formal charges, she admitted that her lack of due diligence and misplaced trust played a role in the debacle. Milei Shuts Down LIBRA Task Force There are new developments surrounding another controversial meme coin. Argentine President Javier Milei formally dissolved the task force that was set up to investigate the fallout from LIBRA, the cryptocurrency project he promoted on social media before it collapsed in value. The dissolution was executed through a decree that was signed on May 19 by Milei and Justice Minister Mariano Cúneo Libarona. They stated that the Investigative Task Force (ITU) fulfilled its mandate. Naturally, the decision attracted a lot of criticism from opposition parties, who are now pushing to launch a new investigative commission. The LIBRA controversy began in February when Milei endorsed the token on his official X account, leading to a dramatic surge in its price. LIBRA briefly reached $5 per token and achieved a market cap close to $5 billion before crashing to zero. This caused widespread allegations that the project was a pump-and-dump scheme. Many accused insiders of manipulating the price, and Milei’s role in the scandal quickly drew public and political scrutiny. After the token’s collapse, the ITU was formed to probe the incident. However, despite the magnitude of the fallout and growing pressure for accountability, the government now shut the unit down. Tweet from Milei endorsing LIBRA (Source: TRM ) In a televised interview with Todo Noticias, Milei denied any wrongdoing, and insisted that he merely shared information about the token rather than endorsing it. He said he believed LIBRA could be a useful tool to help entrepreneurs access funding and that his intentions were rooted in good faith. “I saw a tool that could finance entrepreneurs, and I spread the word. I acted in good faith and took a hit,” Milei stated. He also tried to minimize the extent of the damage by claiming that no more than 5,000 investors were impacted and that only a handful of Argentinians suffered losses, with most affected parties being Chinese and American nationals. However, data contradicts those claims, and shows that over 15,000 wallets recorded trades with losses or gains of more than $1,000, and over 86% of them suffered losses totaling $251 million. The incident took a toll on Milei’s credibility, and recent polls even suggest that 58% of Argentinians have lost trust in the president due to his connection to the LIBRA project. Justin Sun Confirms He’s Trump’s Top Meme Coin Buyer Meanwhile, Tron founder Justin Sun confirmed he is the owner of the wallet that holds the largest amount of Donald Trump’s TRUMP meme coin, securing him a spot at a private dinner with the US president. In a May 19 post on X , Sun announced that he will attend the May 22 event at Trump’s golf club near Washington, D.C., which is part of a reward system for the top 220 holders of the token. Sun’s wallet is listed under the name “Sun,” and reportedly contains around $19 million worth of the meme coin. This not only qualifies him for the dinner but also for a reception and VIP tour. While crypto observers long speculated Sun was behind the high-value purchases, his confirmation reinforces his close ties to Trump and his family’s crypto endeavors. Sun also previously invested $75 million into Trump-backed crypto firm World Liberty Financial, and acts as an adviser to the company. He invested $30 million into the project just weeks after the 2024 election. Sun’s increasing proximity to the Trump administration is interesting as the SEC recently paused its legal battle against Sun. The SEC sued Sun in 2023 over alleged unregistered securities offerings and market manipulation. After Trump’s inauguration, and after the appointment of Commissioner Mark Uyeda as acting SEC chair, both parties jointly requested to pause the case, which a judge allowed in February. His involvement attracted a lot of criticism from lawmakers , particularly Democrats, who argue that the intertwining of crypto investments and political access raises serious ethical concerns.

Source: Coinpaper