“Hawk Tuah” girl Haliey Welch says she is fully cooperating and wants to “bring the truth to light” after the failed crypto launch.

At the end of a tumultuous year that saw her transform from viral star to business mogul, Haliey Welch, aka “Hawk Tuah Girl,” is facing backlash for promoting a crashed memecoin.

Welch announced on December 4th that $HAWK had gone live. About two weeks later, its investors, who lost a total of $151,000, filed a lawsuit against the memecoin’s sellers, claiming they had unlawfully sold securities that were not registered with the U.S. Securities and Exchange Commission .

On Friday, Welch released a statement

So who is Haliey Welch?

Welch’s breakthrough moment came in June when she was approached on the street by content creator DeArius Marlow to name “a move in bed that drives a man crazy every time.”

“You gotta give them the ‘Hawk Tuah’ and spit on that thing,” Welch replied, mentioning the raunchy onomatopoeia that became a viral phrase in the weeks that followed.

The original TikTok post has since generated 9.7 million views, but has been reshared so many times by other accounts that the numbers fail to capture the ubiquity of “Hawk Tuah.”

Since then, Welch has copyrighted the phrase, secured her own representation, quit her day job and threw out the first pitch at a Mets game and inspired a costume at Spirit Halloween. She also launched a podcast called “Talk Tuah,” launched an AI-powered dating app called “Pookie Tools,” and of course, lent her brand to the memecoin $HAWK.

What is a Memecoin?

A memecoin is a form of cryptocurrency inspired by a meme. According to Coindesk, the virtual tokens represent an idea and their value fluctuates depending on the attention that idea receives. They have become increasingly popular since Elon Musk supported Dogecoin.

Memecoins are notoriously risky and volatile as an investment, and because they are typically inspired by the enthusiasm of online communities, they are particularly attractive to buyers for entertainment purposes. Still, they offer early buyers the opportunity to capitalize on the meme craze.

What’s wrong with $HAWK?

Shortly after $HAWK’s release on December 4th, the memecoin’s value skyrocketed, but then quickly plummeted again. According to a lawsuit filed Dec. 19, many who bought it lost large amounts of money.

The investors are suing the Tuah the Moon Foundation, which raised funds from the $HAWK token; OverHere, crypto team Welch teamed up with influencer Alex Larson Schultz, aka Doc Hollywood, who promoted the memecoin online. Welch is not mentioned by name.

Mashable reported that sources close to Welch claim she received a sponsorship fee to promote the memecoin and brand it with her viral catchphrase, but that she had no role in the memecoin’s creation or development. Some speculate that the incident may have been a cryptocurrency scam known as a “rug pull.”

How does Welch react?

Welch and OverHere, the crypto team she worked with, hosted a Spaces stream on X on December 5, where listeners heavily criticized her. Before providing answers as to why $HAWK crashed, Welch apparently interrupted the stream. The audio of the interruption went viral on TikTok.

“Hey, guys!” She said on stream: “I hate to interrupt you, Nick, but hello. Anyway, I’m going to bed and I’ll see you tomorrow.”

That was the last the internet heard from her until she posted a statement on X on December 20th.

“I take this situation extremely seriously and would like to reach out to my fans, affected investors and the broader community,” she wrote. “I am fully cooperating with and committed to supporting the legal team representing the affected individuals and helping to uncover the truth, hold the responsible parties accountable and resolve this matter.”

She urged those affected to contact a lawyer and provided a link to do so.