By CryptoDealZone.com
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🕵️♂️ The $500M Mystery No One’s Talking About (Anymore)
The $HAWK token collapse was one of the biggest crypto implosions in recent memory — but not for the reasons you might think.
I remember exactly where I was when I first heard about it — scrolling through Crypto Twitter, half-distracted, when suddenly the $HAWK chart started free-falling. At first, I thought it was a glitch — but within minutes, it was clear this wasn’t a normal market dip.
Everyone focused on Haliey Welch — the viral “Hawk Tuah” girl, and why wouldn’t they? Her face was attached to the project. But the truth? Welch may have just been a convenient distraction.
Blockchain data shows that 97% of $HAWK’s supply was controlled by just 10 wallets — and those wallets sold off massive holdings at the token’s peak, triggering the collapse.
Welch insists she was just a promoter — not a mastermind. But if that’s true, who actually controlled those wallets? And why hasn’t the SEC stepped in yet?
There’s more to this story… (As my reddit followers quite rightly pointed out) – Hey, you asked for it so here it is – the other side to this story that no one’s talking about (unless you’re from reddit, you were)
💼 Who Controlled the Wallets — And Why It Matters
When 10 wallets control nearly the entire supply of a token, it’s not just a red flag — it’s a freaking flashing siren. A strobe light. The default iPhone alarm tone.
Here’s what the data shows:
✅ 97% of the total $HAWK supply was concentrated in just 10 wallets.
✅ Those wallets executed a coordinated sell-off within hours of the token hitting its highest value.
✅ The liquidity collapse that followed wiped out most of the token’s market value.
This kind of setup benefits insiders — they drive up the price with hype, cash out at the top, and leave everyday investors holding the bag.
“This wasn’t a market correction — the timing and scale of the sell-offs suggest a coordinated strategy,” said blockchain analyst Brian Lewis.
Ten wallets held almost the entire supply (sorry for the repetition) — just think about that for a second though. That’s not just suspicious — that’s the market controlled.
Anyway, blockchain analysts are reportedly tracing transactions to centralized exchanges to try and link the wallets to real identities — but so far, no names have been confirmed.
If these wallets were controlled by insiders tied to the project, that could point to intentional market manipulation — and that’s exactly the kind of thing the SEC tends to pursue aggressively.
🌐 Who Was Really Behind $HAWK?
Welch wasn’t working alone. Several entities and individuals have already been named in investor lawsuits — and they paint a picture suggesting a highly coordinated operation:
➡️ Tuah The Moon Foundation – Oversaw the token’s development and sale.
➡️ overHere Ltd. – Shell company tied to token management and marketing.
➡️ Clinton So – Accused of insider trading and coordinated dumping of $HAWK.
➡️ Alex Larson Schultz (aka Doc Hollywood) – Promoted the token and allegedly sold off large amounts before the collapse (Some comments on reddit are suggesting this is not true, that he in fact held his share. Neither have been proven yet. But some Investors are alleging he did sell.)
Tuah The Moon Foundation and overHere Ltd. being involved isn’t surprising — they’ve been tied to other shady projects before. What’s surprising is how long they managed to keep it under wraps.
The lawsuits argue that Welch’s viral image was used to legitimize a pump-and-dump scheme — and the concentrated wallet activity supports that theory.
“If this was structured manipulation — and the wallet activity points to that — it’s likely that these players profited while retail investors were left holding the bag,” said financial analyst Mark Ellison.
So far, none of the defendants have admitted to wrongdoing. But if investigators can tie the wallets to any of these entities, it could change everything.
The question is — did Welch know about the (market) manipulation, or was she just a convenient figurehead?
💰 How Much Did Welch Really Make?
Welch reportedly received an upfront payment of $125,000 to promote $HAWK and held 10% of the total supply — which would have been worth 50 million real world America’s finest, at its peak. That’s the kind of payday that makes you wonder — did she really not see this coming?
“It’s possible Welch was used as a pawn — but holding that much supply makes it harder to claim she was uninvolved,” said financial analyst Karen Holt.
Even though Welch was contractually barred from selling her holdings, holding that much value still raises questions about conflict of interest.
If Welch truly believed in the project, why did her legal team lock down her holdings so tightly? And if she was being used as a face for the project, why didn’t she walk away sooner?
Welch claims she never sold her stake — but if investigators uncover evidence that she or her team moved those funds through private wallets, the legal situation could shift quickly.
🔎 Why the SEC is probably already involved
The SEC has remained quiet — but the case fits the profile of investigations they’ve launched before:
✅ Concentrated ownership = market manipulation red flag.
✅ Influencer promotion = potential securities violation.
✅ Insider trading evidence = direct path to criminal charges.
In 2022, the SEC fined Kim Kardashian $1.26 million for promoting the EthereumMax token ($EMAX) without proper disclosure. If Welch’s $125K payment wasn’t properly disclosed — or if the SEC determines that $HAWK was an unregistered security — the situation could escalate quickly.
“If the SEC determines $HAWK was marketed as an investment, Welch and the promoters are in dangerous territory,” said financial lawyer Alex Brennan.
If the SEC steps in, this could become the next Kardashian-level scandal — and Welch might not get off so easily.
As of now, the SEC has not publicly announced an investigation into the $HAWK collapse — but given the scale of investor losses and the involvement of public figures, regulatory action remains a possibility. In fact, the lack of news and recent events on this is actually implying they’re already at the door knocking.
🧠 What the Silence Might Be Telling Us
Welch reduced her social media activity after the collapse but made a carefully worded public statement in February, confirming that she is cooperating with legal teams representing affected investors.
Her silence probably isn’t about embarrassment — it’s about legal positioning.
- Welch’s legal team may have advised her to stay quiet while the SEC and private investigators work behind the scenes.
- Key players like Clinton So and Doc Hollywood have also gone dark — suggesting that the real action might be happening behind closed doors.
- If the SEC is building a case, Welch and her team may have already been contacted — but any formal action would remain sealed until charges are filed.
It’s unlikely we’ll hear anything concrete until legal pressure forces someone to talk — or until a key figure cuts a deal to save themselves. And when that happens, we could see a wave of new revelations.
Note: The information provided is based on available reports and allegations. No legal conclusions have been drawn, and all individuals and entities mentioned are presumed innocent until proven otherwise.
Although for months there’s been only silence, in this silence, Welch may have been fighting the loudest legal battle of her life.
📉 Did the $HAWK Collapse Affect the Crypto Market?
The fallout from $HAWK’s collapse has rippled across the memecoin market:
🔻 Trading volume for major memecoins like $DOGE and $SHIB dropped by over 20% in the weeks following the crash.
🔻 Several new influencer-backed tokens were quietly pulled from exchanges — possibly due to increased scrutiny from regulators.
🔻 Binance and Kraken reportedly updated their listing requirements to avoid similar incidents.
“This isn’t just about $HAWK,” said Mark Ellison. “This is about how influencer-backed tokens are fundamentally viewed by the market.”
The fallout from $HAWK could make it harder for influencer-backed tokens to get listed at all. Exchanges are already tightening their standards — and after this mess, who could blame them?
🚀 What’s Next for Welch — And for Crypto?
Welch’s carefully worded statements and sudden re-emergence in February suggest that her legal team may believe the worst is behind her.
➡️ If the SEC steps in, Welch’s financial stake and promotional activity could become key issues.
➡️ If the wallet owners are exposed, it could shift liability toward the insiders.
➡️ The investor lawsuits are moving into discovery — and that could uncover more details about the token’s structure.
💬 So — Was Welch Played or In On It?
Do you think Welch was just a pawn, or was she more involved than she’s letting on? 👇
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