The U.S. Securities and Exchange Commission (SEC) is reportedly closing its investigation into social media influencer Haliey Welch over the alleged rug pull of her memecoin.
According to a new report by TMZ, the regulatory agency is closing the probe into Welch – known as the “Hawk Tuah” girl for her 2024 viral video – without filing any charges against her after it was alleged that she conducted a rug pull following the launch of Hawk (HAWK) in December.
The SEC investigated Welch after her Solana (SOL)-based memecoin rapidly lost its value after a big rally, triggering accusations that the HAWK memecoin was a rug pull.
A rug pull is when the creators of a new asset intentionally inflate its price and then sell large amounts of it, simultaneously profiting and causing the asset’s price to plunge, leaving investors sitting on massive unrealized losses.
As stated by James Sallah, Welch’s attorney, according to TMZ,
“The SEC closed the investigation without making any findings against, or seeking any monetary sanctions from, Haliey. Because they did not bring any action against her, there are no restrictions on what she can do in regards to crypto or securities in the future.”
Sources told TMZ that Welch has cut ties with the firm that launched the coin and won’t be promoting or supporting it moving forward. In December, Welch said she would cooperate with authorities and was committed to resolving the issue.
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