Crypto 'Pay Tax/Fee to Withdraw' Trap
After 'earning' profits on a scam platform, you're told you must prepay taxes or fees to withdraw — money that only deepens your loss.
Think a message like this reached you? You can check it right now.
What this scam is
This is the withdrawal stage of many crypto scams: your balance looks large, but to cash out you must first pay a 'withdrawal tax,' 'unlock fee,' 'anti-money-laundering deposit,' or 'minimum balance.' Each payment leads to another demand. Legitimate exchanges deduct any fees from your balance and never require outside prepayment to release your own funds. The escalating fees are simply more theft.
What it usually looks like
- A large on-screen balance you cannot withdraw.
- A demand to prepay tax or a fee before release.
- New requirements appearing each time you pay.
- Support that keeps you 'close' to withdrawing.
Common warning signs
- Being told to pay to withdraw your own money.
- 'Taxes,' 'unlock,' or 'AML' fees paid to the platform.
- Escalating, ever-changing requirements.
- Pressure and false reassurance.
Example wording scammers use
“Withdrawal pending: pay the 10% tax to release $50,000 to your wallet.”
“One final anti-money-laundering deposit is required to unlock your funds.”
These are illustrative examples written by ScamSplain, not real messages.
What the scammers want
- Repeated 'fee' and 'tax' payments.
- To keep you chasing a fake balance.
- Everything you will keep sending.
What to do
- Never pay to withdraw your own funds; stop immediately.
- Recognize that the balance is fake and the fees are theft.
- Do not send 'one more' payment.
- Preserve records.
What to do if you already responded
- Stop all payments and report to ic3.gov and reportfraud.ftc.gov.
- Warn against 'recovery' services that will re-target you.
- Consult your bank/crypto platform about recent transfers.