SEC’s Hester Peirce warns investors about Telegram cryptocurrency scam

SEC Commissioner Hester Peirce, widely known in the cryptocurrency community as “Crypto Mom,” issued a strong warning after reports surfaced of scammers impersonating her on Telegram to promote fake coins and investment schemes. Impersonators are targeting unsuspecting investors and trying to lure them into fraudulent cryptocurrency projects.

Fake “crypto moms” on Telegram

Parth clarified the situation on social media, saying: “People claiming to be me are trying to scam people. I don’t use Telegram for private messages.” She urged the public to remain vigilant to ensure funds do not end up in the hands of fraudsters and to report any suspicious activity.

The scam follows a familiar pattern in the crypto industry, where scammers create fake profiles of celebrities and push them with bogus investment opportunities and giveaways. Surprisingly, even though the idea of ​​top SEC officials promoting random tokens should immediately raise red flags, many investors still fall for such spoofing tactics.

Platform limitations make fraud easier

Telegram’s privacy settings contribute to this problem, as the app doesn’t allow users to completely block direct messages from strangers who know their handle. As a result, public figures often avoid using the platform for official communications or make their accounts private.

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Echoes of past warnings

Peirce is not alone in facing identity fraud. Binance CEO Changpeng Zhao (CZ) recently shared a similar experience, explaining: “I don’t use Telegram because there’s too much spam and scams.” This highlights how scammers can exploit the anonymity of messaging platforms to trick crypto enthusiasts into investing in fraudulent transactions.

These cases highlight the critical importance of authenticating official accounts and relying only on trusted communication channels, especially when seeking financial advice or investment opportunities.

Demanding Accountability in Cryptocurrency

Peirce, known for his pro-crypto stance within the U.S. Securities and Exchange Commission, has also consistently emphasized the need for integrity in the industry. During the Bitcoin conference in Las Vegas earlier this year, she said:

“Innovation should be encouraged, but bad actors must be held accountable.”

While Peirce opposes heavy-handed regulation, he has made it clear that investors in risky or meme-based tokens should not expect relief. The recent Telegram impersonation scam is a strong warning to crypto users to remain wary of communications claiming to be industry leaders and double-check their authenticity.