For weeks, you watched your balance grow. You requested a withdrawal and, suddenly, a new requirement appeared: pay a “capital gains tax,” a “release fee,” or a “verification deposit” before you receive your money. It’s one of the most common situations among the people who write to us, and it almost always has the same explanation.
Short answer
Yes, almost certainly. No legitimate platform asks you to pay taxes upfront to release a withdrawal: taxes are reported to your country’s tax authority and, when withholding applies, it’s deducted from the amount you receive. The FBI warns that people who pay these charges don’t get their money back either.
Why it’s a sign of fraud
The FBI describes it clearly in its alert on cryptocurrency investment fraud: when victims try to withdraw, they’re told they must pay a fee or taxes, and they don’t get their money back even if they pay. The CFTC, the U.S. futures and Forex regulator, flags the same tactic as one of the warning signs in the final stage of online romance or friendship investment scams. You can read both warnings in the sources at the end of this guide.
The logic of the fraud is simple: once you’ve shown you’re willing to send money, every new charge is another chance to take more from you. The “tax” is usually followed by a “penalty,” “insurance,” or an “account upgrade.”
How taxes on investments actually work
- Taxes are paid to the tax authority, not to the platform. In the U.S., that’s the IRS; in Mexico, the SAT; in Colombia, the DIAN; in Spain, the Agencia Tributaria. You report and pay them through official channels.
- When there is withholding, it’s deducted from the payment. If a company is required to withhold a tax, it subtracts it from the money it pays you. It doesn’t ask you to send more money first.
- No tax authority collects payment by transfer to a private individual, in cryptocurrency, or with gift cards. Nor through a platform’s “account manager.”
The names they use for the same charge
The names change, but they all do the same thing: hold your money and ask you for more.
- Capital gains tax or withdrawal “tax”
- Release, processing, or unlock fee
- Anti-money laundering (AML) or “source of funds” verification
- Guarantee, margin, or security deposit
- Withdrawal insurance or a “protection fund”
- Penalty for suspicious activity or for “breaking the platform’s rules”
- Upgrade to a “VIP” account to withdraw large amounts
In a June 2026 alert, the FBI described a variation in which couriers come to the victim’s home to pick up cash to pay supposed taxes and penalties before the withdrawal. If someone suggests something similar, don’t hand over any money, and report it.
The balance you see on the screen isn’t real
On fraudulent platforms, the balance and the profits are numbers controlled by whoever runs the site. Many allow a small first withdrawal to win your trust, as the CFTC explains, and then block withdrawals once the amount grows. Before investing on any site, check whether the firm is authorized: we explain how to tell if a broker is regulated.
What to do now
- Don’t pay the charge. Not the first one, and not the ones that follow, even if they tell you it’s the last one or that you’ll lose everything if you don’t pay today.
- Don’t share passwords or give access to your device. No one needs your password, your seed phrase, or a remote access program to release a withdrawal.
- Save the evidence before the site disappears: screenshots of your balance and of the message demanding payment, chats, and receipts. Use our evidence guide.
- Alert your bank or the exchange you sent the money from, and ask for a case number.
- Report it to IC3 and the FTC and, if it involved Forex, futures, or cryptocurrency, to the CFTC as well. We explain where to report based on your case.
If you already paid one of these charges
It’s not your fault: these tactics are designed by professionals. What matters is not paying the next one. Also be wary of anyone who offers to recover what you lost in exchange for an upfront payment: that’s the recovery scam, and it often shows up right at this moment.
Official sources
- FBI · IC3: alert on cryptocurrency investment fraud (2023) — victims don’t get their money back even if they pay the fees or taxes demanded
- FBI · IC3: scammers use couriers to pick up cash (June 2026) — payments of supposed taxes and penalties to withdraw
- CFTC: online relationship investment scams (#DatingOrDefrauding) — demanding fees or taxes before a withdrawal as a red flag
Being asked to pay to withdraw? Request a free evaluation before you send another dollar. We’ll tell you in writing whether your case is viable.
