Haliey Welch, the internet sensation behind the viral “Hawk Tuah” video, has broken her silence following allegations surrounding a memecoin associated with her brand. The Hawk Tuah (HAWK) token, launched on December 4, experienced a meteoric rise to a $500 million market cap before plummeting by 90%, sparking accusations of a rug pull.

In a December 20 post on X (formerly Twitter), Welch announced she was cooperating fully with lawyers representing HAWK investors. The crypto users had filed a lawsuit against the token’s creators and collaborators, accusing them of promoting and selling unregistered securities. Welch, however, was not named as a defendant. She urged affected individuals to reach out to the legal team, emphasizing that she takes the allegations “extremely seriously.”

The memecoin’s dramatic pump and dump led many investors to suffer significant losses. Blockchain data revealed that one wallet had sniped 18% of the HAWK token supply shortly after launch, profiting over $1 million by selling at the peak.

Welch, who gained fame on TikTok in June for a viral video, used the attention to build her “Hawk Tuah” persona and brand. She promoted the HAWK token, which featured her likeness, across social media platforms. Despite her public association with the project, it remains uncertain if she or the token’s creators will face criminal or regulatory charges.

As the U.S. Securities and Exchange Commission (SEC) transitions to Republican leadership in January, the future of such regulatory actions remains unpredictable. Under current Chair Gary Gensler, the SEC has aggressively categorized most tokens as securities, a stance that could face shifts in the coming months. The controversy leaves investors questioning the accountability of influencers in the volatile crypto space.