Crypto lawyers said Haliey Welch and her team could face charges following the launch of her memecoin, but only if the relevant authorities take an interest.
The disastrous launch of influencer Haliey Welch’s Hawk Tuah (HAWK) memecoin this week was marred by allegations of sniping and insider trading, with the token plunging 91% in just three hours.
Welch has denied these claims, and authorities have not announced any investigation.
However, if the United States Securities and Exchange Commission or the Department of Justice (DOJ) decide to investigate the controversial launch, Welch and her team could face significant legal scrutiny.
According to Yuriy Brisov, partner at law firm Digital and Analogue Partners, the SEC can pursue civil charges for securities fraud, alleging misrepresentation or deceit in the sales of securities if HAWK qualifies as a security under the Howey test. The DOJ might consider criminal charges like wire fraud or money laundering, especially if there’s evidence of intentional deception or financial misconduct.
On Dec. 4, Welch launched the HAWK memecoin, which briefly surged to a peak value of $490 million before plummeting over 90% to $30 million in a few hours.
