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Paying Tax Upon Withdral

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by COINS NEWS 98 Views

Hello Cryptocurrency people. I’m not super into this kind of stuff so I figured I’d ask here for some advice.

I have a close friend who was speaking with someone they met through a dating app, and whom was convinced to open a Kraken account, buy ETH and then transfer it to a different brokerage called FragoTrade.

On this second brokerage platform they made a number of trades coached by this guy and turned their initial couple thousand dollars into over $100 000 worth of ETH.

Eventually they tried to transfer the ETH back to their Kraken account, but was sent an email from customer support asking them to pay the capital gains tax prior to completing the transfer of the ETH.

They also asked that this tax was paid in either ETH or XRP.

Is that a normal thing in crypto world? Like, wouldn’t tax be paid at the end of the year like any other capital gain, not paid directly to the brokerage website with them holding onto the transfer until that’s paid?

I feel like this is a scam, and that money is gone, but I’d appreciate any advice or insight anyone has otherwise.

In the mean time I told my friend to email customer support back and say they do not wish to complete the transfer, so no tax is needing to be collected, and to put the ETH back into their trading account.

Edit: thanks for the info everyone, I’ve learned that this is called A Pig Butchering Scam and my coworker’s money is gone.

submitted by /u/RegularGuyAtHome
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