Haliey Welch Breaks Silence on Crypto Scandal: Tearful Confession and Leaked Podcast Cause Chaos

Haliey Welch, famously known as the “Hawk Tuah Girl” after her viral internet moment, has found herself at the center of a major cryptocurrency controversy. After months of silence following accusations of fraud related to her $HAWK memecoin, Welch has finally spoken out in an emotional podcast appearance—only for the episode to be leaked prematurely, sending shockwaves through the crypto community.

The Rise and Fall of $HAWK: A $500 Million Crypto Collapse

Welch entered the crypto space in December 2024 when she launched her memecoin, $HAWK, on the Solana blockchain. The coin quickly gained traction, skyrocketing to a market capitalization of nearly $500 million. However, within hours, the coin’s value plummeted by over 90%, leaving investors devastated and sparking widespread allegations of a pump-and-dump scheme.

Blockchain analysts later uncovered concerning details about the coin’s distribution. Reports indicated that up to 90% of $HAWK’s supply was controlled by insider wallets at launch, leading many to suspect intentional market manipulation. Investors accused Welch and her team of inflating the token’s price before offloading their holdings, effectively rug-pulling millions from unsuspecting buyers.

Legal Trouble and Public Backlash

Following the crash, Welch faced intense scrutiny from both investors and legal authorities. A lawsuit filed in New York federal court alleged that the creators of $HAWK engaged in fraudulent promotion and the illegal sale of unregistered securities. While Welch herself was not directly named in the lawsuit, she became the public face of the scandal due to her celebrity status and role in promoting the project.

In response, Welch attempted to distance herself from the controversy, insisting that she had little understanding of cryptocurrency and had been misled by those managing the project. However, her silence for two months only fueled further speculation about her involvement and whether she had knowingly profited from the scheme.

The Leaked Podcast: A Messy Attempt at Damage Control

In an effort to tell her side of the story, Welch recently recorded a podcast with Richard “FaZe Banks” Bengtson, a well-known figure in both the gaming and crypto communities. Banks, who has experience in digital finance, agreed to host Welch’s first public discussion on the issue under strict conditions:

1. No Market Manipulation: The existence of the podcast would not be leaked beforehand to prevent artificial price fluctuations.
2. A Resolution for Investors: Welch’s team was expected to come up with a clear plan on what to do with the money she made and how to move forward with the $HAWK project.

Despite these precautions, the episode was somehow leaked before its scheduled release. This led to an immediate spike in $HAWK’s price, raising suspicions of insider trading and further damaging Welch’s credibility. Upon noticing the unusual market activity on February 2nd, FaZe Banks pulled the episode entirely, furious at what he perceived as gross incompetence from Welch’s team.

FaZe Banks Calls Out Welch’s Team

Banks did not hold back in his public response to the situation. In a scathing statement, he criticized Welch’s team for mishandling the situation and accused them of leaking the podcast to manipulate the market.

“These incompetent retards leaked and/or inside traded the token. We noticed a random spike in volume on the coin 2/2 along with random messages asking us if we did the podcast. Very clearly her team was not as solid as they claimed to be. They completely blew it and we called the episode off right then and there.”

Banks went on to advise Welch to fire her entire team, stating:

“Now @HalieyWelchX I’m going to speak to you direct and say the exact same thing I said to you on Spaces that night. Fire everybody, your team’s fucking retarded.”

His harsh words reflect the frustration many in the crypto space have felt over the handling of the $HAWK situation.

Welch’s Emotional Response

In the leaked podcast episode, Welch appeared visibly distressed while discussing the fallout of the $HAWK project. She expressed regret over how things unfolded and admitted that she felt overwhelmed by the situation.

However, she also maintained that she had been taken advantage of by people who presented themselves as crypto experts. She claimed she had little understanding of how cryptocurrency worked and that she had trusted the wrong people to manage the project on her behalf.

‘Hawk Tuah’ girl, Haliey Welch, broke down into tears while talking about the alleged rugpull of her coin

pic.twitter.com/DhJ0SZKj1j

— Dexerto (@Dexerto) February 7, 2025

Her emotional reaction has sparked mixed responses. Some sympathize with her, believing that she was used as a pawn in a larger financial scheme. Others remain skeptical, arguing that regardless of her level of understanding, she still promoted the coin and benefited from its rise and fall.

What’s Next for Haliey Welch and $HAWK?

As of now, Welch has not issued an official statement regarding the podcast leak or the latest controversy. The legal case against the $HAWK project is still ongoing, and it remains unclear whether Welch herself will face any direct consequences.

Meanwhile, the crypto community continues to debate whether influencers like Welch should be held accountable for their involvement in financial schemes they do not fully understand. The $HAWK scandal has once again highlighted the risks of celebrity-backed cryptocurrency ventures and the potential for market manipulation in the largely unregulated space.

For now, Welch’s future remains uncertain. Whether she will be able to rebuild her reputation or fade into internet infamy remains to be seen.