BaFin Warns Investors: Phantom Gains May Be Taxable

The German financial regulator BaFin has issued warnings about several crypto-related investment scams in recent days.

Between September 11 and September 16, 2026, BaFin published thirteen consumer notices, seven of which concerned offers with a crypto-asset connection.

A phantom gain is a return credited to an investor by a platform, even if no real investment or income lies behind it.

The Federal Fiscal Court has ruled that phantom returns are taxable, even if they were never paid out, as long as the operator would have been willing and able to pay at the time of credit.