High riskCrypto & Investment Scams

Fake Crypto Exchange Scam

A fake crypto exchange or trading app shows convincing balances and profits to encourage more deposits, then blocks withdrawals and demands 'fees' or 'taxes' before you can take any money out.

Quick verdict

Risk level
High risk
Scam type
Fake platform scam
Main red flag
You can deposit and see 'gains', but withdrawing requires paying extra fees first.
What to do first
Stop depositing. Demands to pay a fee before you can withdraw are a common scam sign.

What this scam usually looks like

A fake crypto exchange or trading app shows convincing balances and profits to encourage more deposits, then blocks withdrawals and demands 'fees' or 'taxes' before you can take any money out.

Example message pattern

Example pattern — not a real report
Example pattern: 'Your account has earned $8,400 in profit. To release your withdrawal, please first pay a 12% tax fee to this wallet: [suspicious link]'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

Red flags to watch for

  • Steady, unrealistic 'profits' that only appear inside the platform
  • Withdrawals blocked until you pay a 'fee', 'tax', or 'deposit insurance'
  • The platform was suggested by someone you met online or in a chat group
  • No clear company details, licensing, or way to verify the firm
  • Pressure to deposit more to 'unlock' a withdrawal or hit a 'minimum'

What to do

  • Stop adding funds the moment a withdrawal is blocked behind a fee
  • Search the platform name with words like 'scam', 'review', or 'withdrawal problem'
  • Treat 'pay a tax to withdraw' demands as a common scam pattern
  • Report the platform to your national fraud body and the app store if relevant

If you already clicked or replied

  • Do not pay any 'release', 'tax', or 'unlock' fee to withdraw
  • Take screenshots of your account, the messages, and any wallet addresses
  • Contact your bank or card provider if you funded the account through them
  • Be wary of anyone who later offers to 'recover' your funds for an upfront fee

What not to do

  • Do not pay fees or taxes just to access your own 'balance'
  • Do not deposit more to reach a withdrawal 'minimum'
  • Do not share your wallet seed phrase, passwords, or remote-access to your device

Similar scams

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Crypto Investment Scam

This scam promises high or guaranteed crypto returns through a fake platform, shows paper profits to encourage bigger deposits, then blocks withdrawals.
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Fake Escrow Scam

In a high-value marketplace deal, the other party insists on a specific 'escrow' or 'secure payment' website to hold the funds, but the site is fake and simply collects your money or card details.
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Crypto Recovery Scam

This scam targets people who already lost money, promising to recover lost crypto or funds for an upfront fee. The recovery is never delivered, and the victim loses even more money to the second scammer.

Frequently asked questions

Why does the platform show profits if it is fake?
The balances and gains are just numbers on a screen the scammers control. They are designed to build trust so you deposit more before you ever try to withdraw.
Is the 'withdrawal tax' or 'fee' real?
No. Genuine exchanges deduct any fees from your withdrawal rather than asking you to send extra money first. A demand to pay before withdrawing is a common scam sign.
Someone in a chat recommended this exchange. Does that help?
Be cautious. Many of these scams begin with a friendly contact or group that steers you to a specific platform. The recommendation is often part of the setup.
I cannot withdraw my money. What should I do?
Stop sending funds, save all evidence, and report it to your bank and national fraud body. Avoid 'recovery' services that ask for upfront payment, as they are often a follow-on scam.

Last reviewed: June 2026

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.