HAWK Meme Coin Collapse: One Year Later, Hailey Welsh Speaks Out on Trauma and FBI Investigation

Hailey Welsh, who gained popularity on social media for her “Hawk Tuah” videos, publicly discussed the collapse of the HAWK meme coin launched in December 2024 and the subsequent widespread online backlash, which left her “deeply traumatized.” Welsh stated that she fully cooperated with the FBI investigation in 2025, which concluded that she had no misconduct and that she did not hold any of the funds raised.

Review of the HAWK Meme Coin Collapse

(Source: DEXScreener)

The HAWK meme coin was launched in December 2024, and within hours, its market capitalization surged to over $490 million. The token plummeted more than 91% the next day, dropping to approximately $41 million, with its current market cap just above $1 million. That same month, investors filed lawsuits against the physical entities involved in the issuance of HAWK (excluding Welsh herself), accusing them of selling unregistered securities.

Welsh said her lawyer estimates the actual losses for retail investors to be around $200,000. She herself lacked technical knowledge of the issuance process and did not control any of the funds. “I was persuaded to do something I completely didn’t understand,” she said in an interview.

Welsh’s Statement: FBI Investigation, Death Threats, and Psychological Impact

(Source: YouTube)

Welsh revealed that after the incident, she began receiving death threats and was forced to stay low profile for several months, which severely affected her mental health. “People said I owed them a lot of money. I have to walk around with my head down,” she said.

Key Timeline of the HAWK Incident

December 2024: HAWK meme coin launches, briefly surpassing $490 million in market cap before crashing over 91%, with lawsuits filed against the physical entities involved in the issuance.

Throughout 2025: Welsh fully cooperates with the FBI investigation, which concludes she acted appropriately.

March 2026: Welsh gives her first public interview on Channel 5, sharing the psychological impact of the incident and warning the public to be cautious with cryptocurrencies.

Welsh also mentioned that more than a year after the incident, her understanding of the crypto industry remains limited, and she emphasizes, “You must be very careful when signing things.”

ZachXBT’s Counterpoint: Responsibility and Accountability Dispute

On-chain investigator ZachXBT responded publicly after Welsh’s interview, stating, “I don’t feel bad about this kind of trauma.” He pointed out that the crypto community had repeatedly warned her not to issue tokens, yet she chose to launch HAWK, and afterward blamed her partners and distanced herself from social media, causing her fans to lose funds.

This controversy highlights systemic issues within the meme coin ecosystem: the boundaries of influencer promotion responsibility, retail investors’ risks in highly volatile tokens, and the legal accountability of token issuers. Lawsuits related to the physical entities behind the HAWK issuance are ongoing, and Welsh has not been named as a defendant.

Frequently Asked Questions

Who is Hailey Welsh, and why is she associated with the HAWK meme coin?
Hailey Welsh became widely popular on social media for her “Hawk Tuah” videos. In December 2024, she promoted the meme coin HAWK bearing that name. After its launch, the token briefly surged and then collapsed, triggering FBI investigations and lawsuits.

What was the conclusion of the FBI investigation?
Welsh stated she fully cooperated with the FBI in 2025, and the investigation concluded she had no misconduct. She emphasized that she did not hold any of the funds raised and lacked the technical ability to issue the meme coin.

How large were the losses for retail investors in HAWK?
Welsh’s lawyer estimates the direct losses for retail investors to be around $200,000. The token’s market cap fell from a peak of $490 million to about $1 million, and the lawsuits target the physical entities involved in the issuance, not Welsh herself.