Cryptocurrency scandal: Potential charges for Hawk Tuah girl
In a shocking turn of events, former Hawk Tuah girl, Hailey Welch, now turned influencer, is facing potential criminal charges following the disastrous launch of her memecoin HAWK. Fans who invested in the cryptocurrency have seen their life savings disappear, with the market cap plummeting from $490 million to a mere $41 million in just 20 minutes after its release.
Allegations of insider trading have been swirling around Welch, with many calling for her to be held accountable for what they believe was a deliberate rug pull. This term refers to creators selling all their cryptocurrency holdings, causing prices to crash and leaving investors with severe losses.
While Welch denies any wrongdoing, the possibility of legal action looms large. Legal experts suggest that the United States Securities and Exchange Commission (SEC) may pursue civil charges for security fraud if the Howey test is met. Additionally, the Department of Justice (DOJ) could investigate criminal charges like money laundering and wire fraud if there is evidence of financial misconduct.
Regarding allegations of insider trading, Yuriy Brisov of law firm Digital and Analogue Partners explains that it involves trading securities based on non-public information, breaching trust. In the world of cryptocurrencies, the legal landscape is evolving, and actions like possessing insider information before a token launch could be considered fraudulent or manipulative.
Welch has defended herself against these accusations, stating that neither her team nor any Key Opinion Leaders (KOL) received any free tokens or sold any. However, data reveals that over 80 wallet addresses that did not purchase tokens sold them shortly after launch for substantial profits, raising further questions.
While no formal investigations have been announced yet, the case has captured the attention of authorities, especially in the wake of recent cryptocurrency-related legal actions. The founder of Bitcoin fog crypto mixer was recently sentenced to 12 and a half years in prison by the US DOJ.
As the situation unfolds, investors and fans alike are left grappling with the fallout of the failed HAWK memecoin launch, highlighting the risks and uncertainties that come with the fast-paced world of cryptocurrencies.
