Potential Charges in SEC Investigation of HAWK Launch

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Haliey Welch recently made headlines with the launch of HAWK memecoin, but now she might be facing some serious scrutiny. The Securities and Exchange Commission (SEC) could be looking into potential insider trading, and civil fraud charges may be on the table.

Even though Welch has denied any misconduct and no official investigation has been announced, the SEC or the Department of Justice (DOJ) could step in. If they do decide to take action, Welch and her team could be in for some legal trouble.

Within hours of its debut in early December, HAWK took a nosedive, losing 90% of its peak valuation. This drastic drop, from $490 million to just $30 million, raised a lot of eyebrows.

Yuriy Brisov, a partner at law firm Digital and Analogue Partners, explained that if HAWK is considered a security under the Howey Test, the SEC might pursue civil securities fraud charges. Insider trading, which involves trading securities based on non-public information, could be at the center of the investigation.

Furthermore, the DOJ could add criminal charges like wire fraud or money laundering to the mix if they find any evidence of intentional financial misconduct.

The launch of HAWK was plagued with allegations of insider trading, limited supply control by a small group of addresses, high fees, and controversial tactics.

According to data from Dexscreener and Solscan, over 80 wallets received tokens before the official launch, with some of them making substantial profits.

Welch has adamantly denied these allegations, claiming that her team did not sell tokens or give them to key opinion leaders for free. She also stated that high transaction fees were put in place to prevent sniping.

Crypto lawyer Joni Pirovich emphasized that if insider trading is proven, the legal consequences could be severe. Profiting from insider information is a serious offense, but misleading the public adds another layer of liability.

The classification of memecoins like HAWK is crucial in determining the legal implications of their launch. Under current leadership, most tokens are seen as securities by the SEC, requiring registration. However, the status of memecoins is still up in the air.

In the world of crypto, things move quickly and regulations are constantly evolving. Only time will tell whether Welch and her team will face any charges from the SEC or the DOJ in connection to the HAWK launch.

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