The activity reportedly began in September, as the US midterm election season gained momentum. Researchers found that some accounts published inflammatory anti-Muslim messages and AI-generated images to provoke engagement, drawing thousands of comments and tens of thousands of views on certain posts.
Political Outrage Used to Build an Audience
According to the CSOH report, the accounts initially focused on political content rather than investment promotions. Several used names referencing President Donald Trump, members of his family and Vice President JD Vance, although researchers found no evidence connecting the accounts to those individuals.
Some accounts also presented themselves as government officials or news organizations, while others adopted political identities associated with the MAGA or QAnon movements. The inflammatory posts helped attract audiences before the accounts shifted toward financial warnings and investment pitches.
After building a following, some operators reportedly began warning users about an impending banking crisis, a stock market collapse or a financial reset. These claims were used to create fear and encourage followers to consider alternative financial arrangements promoted through the accounts.
Fake Trump Account Pushes XRP and XLM Transfers
One account identified as "Trump Account" initially published pro-Trump and anti-Muslim content before promoting the so-called Quantum Financial System, a financial conspiracy theory.
CSOH founder Raqib Naik contacted the account through Telegram. The account holder allegedly warned him that banks would collapse and claimed to have close connections with the Trump administration.
The conversation then shifted to cryptocurrency. The account claimed that existing currencies would cease to exist and urged Naik to move his money into XRP and XLM. It also directed him to a website where he could supposedly open a new bank account.
Researchers documented similar interactions involving accounts impersonating members of the Trump family. However, the report did not identify the people operating the accounts or provide a figure for the financial losses associated with the activity.
The banking-collapse warnings and claims that other currencies would disappear were presented as part of the alleged scam's pressure tactics, not as evidence of an actual financial crisis. Telegram said it would investigate reported fraudulent accounts and remove those flagged by moderators or users.
How to Identify Fake Crypto Investment Offers
Fear-based financial claims delivered through unsolicited private messages are among the warning signs highlighted by the reported activity. Messages predicting that banks will close, currencies will disappear or a hidden financial system will provide special access should be independently verified before users take any action.
Other potential red flags include unexpected Telegram messages, unfamiliar account-registration websites and claims that recipients have access to exclusive financial opportunities.
XRP and XLM are legitimate crypto assets associated with the XRP Ledger and Stellar network. Their appearance in these alleged schemes does not make the underlying cryptocurrencies fraudulent. The reported deception instead involves impersonation, unsupported financial claims and potentially fraudulent websites designed to persuade users to transfer funds.
Steps Investors Can Take to Protect Their Funds
The US Federal Trade Commission advises consumers to research investment opportunities, avoid pressure to make rushed decisions and treat promises of guaranteed returns as a warning sign. Investors should verify financial claims through official sources, avoid sending money to strangers and report suspicious accounts to the relevant platform.
People who have already transferred cryptocurrency should contact the exchange used to send the funds, preserve transaction records and report the incident to authorities. They should also be cautious of recovery services that demand upfront payment, as these can expose victims to further losses.
source: coinedition
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
The articles on Hokanews are here to keep you updated on the latest buzz in crypto, tech, and beyond—but they’re not financial advice. We’re sharing info, trends, and insights, not telling you to buy, sell, or invest. Always do your own homework before making any money moves.
Hokanews isn’t responsible for any losses, gains, or chaos that might happen if you act on what you read here. Investment decisions should come from your own research—and, ideally, guidance from a qualified financial advisor. Remember: crypto and tech move fast, info changes in a blink, and while we aim for accuracy, we can’t promise it’s 100% complete or up-to-date.
