Crypto Exchanges Demand Extra Fees Before Withdrawals

Investors in cryptocurrency are being targeted by fake exchanges that demand additional fees before allowing withdrawals. These platforms may appear legitimate, but they're actually advance-fee investment scams.

The Federal Trade Commission has warned of websites that display apparent account balances and then prevent withdrawals unless victims pay high fees.

A legitimate exchange may impose genuine withdrawal restrictions for reasons such as security reviews or compliance requirements, but a particularly dangerous pattern occurs when a platform tells you that your funds are available and then demands that you send more money before receiving your existing money.

The scammer's tactic is to ask the victim to pay money in order to receive money that supposedly already belongs to them. Real cryptocurrency transactions can involve network fees, exchange fees, spreads or other legitimate charges, but a major warning sign is when an unfamiliar investment platform says 'Send us another $5,000 in cryptocurrency before we will release the $50,000 already shown in your account.'

The most important steps are to stop sending money and preserve evidence. Do not pay another withdrawal fee, do not assume the balance shown on the website represents real cryptocurrency, and preserve screenshots, emails, chats, wallet addresses and transaction IDs (TXIDs).