What was the Hawk Tuah Scam?
The Hawk Tuah coin scandal was one of the biggest controversies of 2025. We're covering the Hawk Tuah scam, what happened, and what you can do with losses.
The $HAWK token, tied to viral star Hailey Welch, launched in late 2024, surged to a $500 million market cap, then crashed over 90 percent within hours due to insider dumping.
On-chain data showed only 3 to 4 percent of tokens were available to the public, while 96 percent were held by insider wallets, leading many to label it a pump and dump or rug pull.
Welch denied involvement in the scam, stating she was only a paid promoter and cooperated with the SEC and FBI. She was not named in the lawsuit.
Investors can join a class action lawsuit or claim tax losses. The case highlights the risks of influencer-backed tokens and hype-driven meme coins.
The Hawk Tuah coin scandal was one of the most high-profile crypto controversies of 2025, where viral fame met massive financial losses. What started as a seemingly lighthearted meme coin launch tied to internet sensation Hailey Welch quickly turned into a cautionary tale of influencer-backed tokens, insider manipulation, and investor outrage.
In this guide, we’ll break down who Hailey Welch is, what the $HAWK token was supposed to be, what actually happened, and what options are available if you lost money during the crash.
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Who is Hailey Welch?
Hailey Aliene Welch, better known online as the “Hawk Tuah Girl,” became a viral sensation in mid-2024 after a clip of her street interview, where she made an off-the-cuff and highly quotable comment, exploded across TikTok, Instagram, and X (formerly Twitter).
The phrase “Hawk Tuah” became a meme almost overnight, and Welch quickly leaned into the fame. She launched a podcast, sold merchandise, and gained millions of followers.
By late 2024, Welch had become one of the most recognizable internet personalities of the year. Her relatability, humor, and fast rise made her a prime figure for meme coin creators looking to cash in on her fame.
Read next: Celebrity Crypto Scams
What was the $HAWK token?
The $HAWK token was launched in December 2024 on the Solana blockchain. Billed as a meme coin for the community, it was promoted heavily through social media platforms, Welch’s podcast Talk Tuah, and a crypto launchpad called OverHere.
The project didn’t promise a revolutionary new utility. Like many meme coins, it relied on hype, community engagement, and the influence of its celebrity backer. Within hours of launch, $HAWK surged to a market cap of nearly $500 million, making it one of the most successful meme token debuts of the year, at least temporarily.
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What happened to Hawk Tuah Coin?
The price of $HAWK crashed within hours of reaching its peak. On-chain data showed that only around 3–4% of the token supply had been made available to the public, while 96% was held in just ten insider wallets before launch. These wallets began dumping their tokens almost immediately after the token went live.
As a result, the price of $HAWK plummeted by over 90% in a matter of hours, wiping out most of the token's market cap and leaving retail investors with near-worthless holdings. While some insiders made millions in profit, thousands of everyday buyers were left angry and confused.
The token’s rapid collapse, lopsided distribution, and coordinated sell-offs led many to call the project a textbook “pump and dump” or rug pull.
Read next: Crypto Rug Pulls Guide
Why are people calling it a scam?
Shortly after the crash, a class-action lawsuit was filed in New York, accusing the creators of $HAWK of running an unregistered securities offering and misleading investors. The lawsuit alleged that the token had been falsely promoted as a legitimate investment opportunity and that insiders had profited at the expense of the public.
Although Hailey Welch’s name and image were used heavily in promoting the token, she was not named as a defendant in the lawsuit. In interviews and on her podcast, Welch stated that she had no control over the token’s launch or its distribution and was only paid a flat marketing fee. She has also said she was unaware of the token’s mechanics and cooperated with federal authorities when the investigation began.
The combination of celebrity involvement, rapid insider dumping, and investor losses created a perfect storm, leading the public to view the $HAWK token as more than just a failed meme coin but as an outright scam.
What has Hailey Welch said about it?
After weeks of silence, Hailey Welch addressed the controversy publicly in early 2025. She claimed that she was brought into the project as a spokesperson and wasn’t involved in the technical or financial side of the coin. Welch also stated that she was fully transparent with law enforcement and had voluntarily spoken with both the FBI and SEC.
According to Welch, she was cleared of any wrongdoing and did not personally profit from token sales. She described the experience as a major lesson and warned fans to be cautious with crypto investments tied to internet personalities.
Read next: Does the SEC Regulate Crypto?
What can you do if you lost money on $HAWK?
If you invested in $HAWK and suffered losses, here are some steps you can take:
Join the class-action lawsuit. A legal case is currently in progress, and investors may be eligible to participate if they purchased $HAWK before or during the token’s collapse.
Report the incident. You can file a complaint with the U.S. Securities and Exchange Commission (SEC) or Federal Trade Commission (FTC) if you believe you were misled.
Claim a capital loss. If you've realized your loss, either by selling the token or disposing of it, such as sending it to a burn wallet, you may be able to claim a capital loss on your tax return. This can help offset capital gains and reduce your tax bill. If you haven't sold the token yet, you’ll need to do so to realize the loss.
Read next: Crypto Tax Write-Offs
Lessons from the Hawk Tuah coin collapse
The $HAWK coin scandal is a reminder that meme coins—especially those tied to celebrities or influencers—carry significant risks. The token’s rapid rise and fall, insider manipulation, and legal fallout all reflect a pattern seen in many similar scams over the years.
For investors, the key takeaways are clear:
Watch out for lopsided token distribution.
Be cautious of celebrity endorsements with no technical involvement.
Look for transparent teams, detailed roadmaps, and locked liquidity.
Avoid investing in hype-driven projects you don’t fully understand.
While Hailey Welch may have avoided direct legal consequences, the project linked to her name left a lasting impact on investors and the meme coin market. As always, do your own research, never invest more than you can afford to lose, and stay skeptical of overnight success stories in crypto.
Koinly helps calculate losses
Koinly is a crypto tax calculator that can help you figure out your tax bill. Not only can it calculate your gains, losses, income, and more, but it can even help you deal with unrealized losses, like from rug pulls. The tax optimization tool helps you spot opportunities to harvest losses and lets you simulate how a disposal to realize these losses would impact your tax bill. Try it free today.
