Outrage Erupts Over SEC’s Inaction in Haliey Welch Case

Prominent YouTuber Coffeezilla, known for advocating against online scams and dubious cryptocurrency projects, has voiced his disgust following comments made by Haliey Welch, popularly known as the ‘Hawk Tuah girl’, and her attorney. They suggested that the U.S. Securities and Exchange Commission (SEC) had ceased its investigation and would not pursue any charges against her. This claim surfaced on March 27, when Welch and her legal team asserted that the SEC had found no evidence of wrongdoing on her part.

Last year, during the dramatic decline of her $HAWK coin on the Solana blockchain, Coffeezilla was one of many voices in the crypto community who accused Welch of insider trading. Allegations included accusations of a ‘rug pull’, a fraudulent practice where developers abandon a project after collecting investors’ funds.

Following the recent reports indicating the SEC’s decision to not take legal action against Welch, Coffeezilla responded with strong displeasure. He shared his perspective in a tweet on March 28, 2025, controversially stating that “crime is legal.”

This tweet quickly gained traction, with nearly a million impressions in just a few hours, reflecting widespread discussion and concern in the crypto community.

Public reaction to Coffeezilla’s post was vibrant, showcasing a mix of skepticism and outrage. Here are some sentiments expressed by users:

“This is a real shame of the crypto world,”commented an X user.

“Crime is legal when you are rich,”asserted another user.

“Not illegal. 80% of IPOs do the same thing,”noted an X user.

Additionally, Twitch streamer and content creator Ac7ionMan contributed his thoughts to the debate:

“Rob a bank for $10k and get 50 years; steal $3 million in crypto and get rewarded.”

Haliey Welch’s Comments on the SEC Investigation

Haliey Welch made headlines in 2024 after her cryptocurrency venture faced accusations of a rug pull. During this tumultuous period, she refrained from posting new content on her Talk Tuah podcast for several months. However, a leaked episode featuring FaZe Banks eventually revealed her apparent apology to supporters and reflections on her situation.

According to a report by TMZ on March 27, Welch’s lawyer, James Sallah, stated that the SEC had closed its investigation regarding the $HAWK controversy without initiating any legal action or imposing monetary sanctions:

“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.”

Welch also shared her perspective in this report, indicating her cooperation with the SEC’s requests over the previous months:

“For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete.”

In the wake of these developments, Haliey Welch has returned to social media after an extended hiatus post-controversy, announcing a new documentary titled DocTuah that will detail her side of the story.

For more insights and updates, check out the full article on Sportskeeda.