My 'broker' is asking for a 'network upgrade fee' to release my crypto profits. Is this legit?

asked 29d ago10 views20 answers
0

Hey everyone, I'm really freaking out. I got into crypto trading a few months ago, found this platform on Instagram, you know how it goes. Started small, then they assigned me a 'broker' who was super helpful. I put in maybe 8,000 euros over time, and they showed me my 'profits' were huge, like 25,000 euros. I tried to withdraw a few days ago, just 2k to test it out, and suddenly they're saying I need to pay a 'network upgrade fee' of 15% of my total balance first. They say it's because of new blockchain regulations and it's temporary. It has to be paid in crypto, upfront. I'm in Marseille, and I've never heard of anything like this. My bank, Crédit Agricole, said they can't help with crypto transfers. Is this a normal thing? Or am I being scammed hard? I feel so stupid right now.

20 Answers

42

Oh wow, Camille, I'm so sorry you're going through this. That 'network upgrade fee' is 100% a scam. A classic move. Legitimate brokers, especially with crypto, do not ask for upfront fees like that to release *your own money*. They might have withdrawal fees, sure, but those are deducted from the amount you're withdrawing, not paid separately and upfront before anything moves.

This is a major red flag for what we call an advance fee scam. They create artificial reasons – 'network upgrades,' 'regulatory compliance,' 'tax fees,' 'insurance' – to extract more money from victims who are desperate to get their initial investment back, let alone their 'profits.'

Look for any details about this 'broker' online. Are they regulated by any financial authority like the AMF France or BaFin? Probably not. If they're not, that's another massive red flag. Your funds are likely gone, and any additional money you send will also disappear. Stop all communication with them immediately. Don't send another cent. I know it's hard to hear, but it's the truth.

Saar de Jong · The Hague, Netherlandsanswered 29d ago
31

Camille, this is heartbreaking but Saar is right. It's a scam. I went through something similar last year with an unregulated forex platform, not crypto, but the pattern is identical. They showed me these amazing profits on their dashboard, kept pushing me to invest more, and when I finally tried to withdraw, it was 'tax fees' then 'liquidity fees' then 'anti-money laundering fees'. Each time, I paid, thinking I was so close to getting my money back. I lost way more than my initial investment just trying to pay those 'fees'.

Stop now. As in, right now. Don't send another cent. It's a psychological trick to keep you hooked. They make the profits look real on their fake platform, but it's just numbers they type in. The money isn't there. Report it to your local police and try a chargeback with Crédit Agricole if you used cards for deposits, though crypto makes it harder. I really hope you can recover something.

Liam Ndlovu · Durban, South Africaanswered 29d ago
17

Mmh, this sounds very familiar. Heard about these 'network upgrade fees' being floated around a bit recently. Frankly, it screams scam. No legitimate platform I've ever dealt with, whether it's Binance, Coinbase, or even local exchanges here, asks for an 'upfront network upgrade fee' to release funds. Especially not a percentage of your balance. That's just them trying to drain more from you. How did you verify this platform initially? Did they have a license? Because my gut says no. I'd be very, very careful about sending any more money. Sounds like a classic pump-and-dump where they 'pump' your account with fake profits and then 'dump' you with fees.

Yusuf Al Hashemi · Ras Al Khaimah, UAEanswered 29d ago
11

Oh honey, no, that's not how crypto works at all. 'Network upgrade fee' that's 15% of your balance? Absolutely not. That's pure fiction. These scammers just make up fancy-sounding reasons to get more cash out of you. They're counting on you not knowing the ins and outs of blockchain. Your money, if it ever even existed on a real exchange, is long gone. The 'profits' are just numbers on their fake website. Don't fall for it. Don't give them another dime. Report them to your bank, and if you used crypto, maybe look into blockchain analytics but it's a long shot.

Samantha King · Phoenix, USAanswered 29d ago
28

Camille, listen closely: any 'broker' asking for an upfront fee to release *your* funds is a scammer. Full stop. It doesn't matter if they call it a 'network upgrade fee,' 'tax,' 'liquidity insurance,' or whatever else they invent. These are all tactics to get you to send more money. If they genuinely held your money and there was a fee, they would deduct it from your balance, not ask for a separate payment first.

Singapore's MAS constantly warns about these types of unregulated platforms. They promise high returns, build trust, show fake profits, then demand fees for withdrawal. Once you pay one, another one pops up. The goal is to keep you paying until you either run out of money or realize the truth. Please, do not send them any more funds. You are dealing with criminals.

Jia Chan · Singapore, Singaporeanswered 29d ago
9

Oh non, Camille, I'm so sorry you're dealing with this. It sounds incredibly stressful. Please try to stay calm, but also, please do not send them any more money. This 'network upgrade fee' sounds very suspicious and like a tactic many scammers use. It's a common trick to invent fees to get more money out of people who are desperate to get their profits. Your emotions are probably all over the place right now, which is exactly what they count on. Take a deep breath. Focus on protecting what you have left. Don't be ashamed, these people are incredibly sophisticated in their manipulation.

Sara Al Qasimi · Al Ain, UAEanswered 29d ago
22

Ugh, this is exactly what happened to me with FXChoice, except it was a 'regulatory compliance bond' and not crypto. I saw the profits, looked good, but then they kept inventing fees. I even borrowed money to pay some of them, thinking it was the only way to get my initial investment plus the huge 'profits' they showed me. It was all fake. Every single cent I sent after the first deposit was just thrown away. I reported them to FCA (they're on their warning list btw, wish I'd checked earlier) but haven't gotten anything back. Please, for your own sake, do NOT pay this fee. Cut contact. Your money is likely gone, and they're just trying to get more out of you.

Joshua Ong · Singapore, Singaporeanswered 28d ago
15

Camille, my heart goes out to you. What a horrible situation to be in. It's a classic scam, honey. I've seen so many people fall for this exact play. They get you invested, show you huge 'profits' on their fake interface, and then hit you with some ridiculous, made-up fee to withdraw. 'Network upgrade fee' is just the latest flavor of scam. The only thing an 'upgrade' will do is upgrade their bank account. Don't be embarrassed; these people are professional con artists. Your best bet is to cease all communication, block them, and report it to your local police. Don't engage with them further, no matter how much they harass you or promise you your funds back if you just pay *one more fee*.

Mia Walker · Darwin, Australiaanswered 28d ago
25

I agree with everyone else, this is a total scam. There's no such thing as a 'network upgrade fee' to withdraw your own crypto. Real platforms charge transaction fees, usually small, and they're taken out of the withdrawal amount, not paid separately and upfront. I was lucky and caught myself before falling completely for one of these last year. I used Nethertrace for a quick background check on the 'broker' they assigned me after seeing too many red flags on their 'platform'. Nethertrace confirmed the company wasn't licensed by AMF France or any other reputable regulator, and had a history of scam reports. It saved me from sending more money. You need to cut ties immediately, Camille. Don't transfer any more crypto or fiat to them.

Louis Garcia · Montpellier, Franceanswered 28d ago
38

Yes, Camille, as others have pointed out, this is unequivocally a scam tactic. This isn't a new phenomenon; it's a variation of the 'advance fee fraud' model that has adapted to the crypto space. Legitimate financial institutions or regulated crypto exchanges (which this 'broker' is almost certainly not) operate with transparency regarding fees, which are either clearly disclosed upfront or deducted directly from the transaction amount. They never request a separate, upfront payment of a significant percentage of your balance for a 'network upgrade' or similar fabricated reason.

The 'profits' you see on their platform are entirely fabricated. They manipulate these figures to maintain your engagement and create the illusion of success, driving you to pay these additional 'fees' in the false hope of accessing your funds. You are not dealing with a financial service provider; you are dealing with criminals. The appropriate course of action is to cease all communication, block them, and report the incident to relevant law enforcement agencies in France (e.g., Cybermalveillance.gouv.fr or your local police) and potentially the AMF France, even if they aren't regulated, as they track such fraudulent activities. Do not, under any circumstances, send them more money. Any funds sent now will be irrevocably lost.

Daniel Smith · Cork, Irelandanswered 28d ago
5

Oof, mate. That 'network upgrade fee' screams scam. Seriously. Legitimate platforms don't operate like that, especially not demanding upfront crypto payments for 'regulations.' The fact that they operate via Instagram and push you to a private 'broker' is a massive red flag. They likely fabricated those profits to get you to invest more. If you want to report this, definitely check out the AMF France website. They have guides on how to report investment scams.

Liam Bergeron · Toronto, Canadaanswered 28d ago
3

Oh no, that sounds absolutely terrifying. I'm so sorry you're going through this. Your instincts are right, it doesn't sound legit at all. It's really common for these Instagram 'investments' to turn into scams. Don't beat yourself up, it's so easy to fall for convincing pitches. Try to stay calm, and please don't send them any more money, no matter what they say. We're here to help you figure this out.

Lina Martin · Lyon, Franceanswered 28d ago
7

DO NOT PAY THAT FEE. That is textbook scam behaviour. They've hooked you with fake profits and now they're trying to bleed you dry. These 'network upgrade fees,' 'KYC fees,' 'tax fees' are all BS designed to get more money from you. It's like those fake lottery wins. If you've already sent them money, consider it lost unless you can somehow claw it back through your bank if it was a card transaction – which it sounds like it wasn't. This is why I stick to regulated exchanges like Kraken or Binance, even though the fees are higher. At least they're legit.

Daniel Hughes · Liverpool, United Kingdomanswered 28d ago
5

This is EXACTLY what happened to me. They said the same thing about a 'compliance fee' to get my money out. Mine was $10k USD they claimed I had. I paid $1k in ETH for the fee. Then they wanted another one! It's a nightmare. I was so excited about the profits, too. Felt like I'd finally made it, you know? Now I'm just sick to my stomach and my wife is furious. I lost almost all of it. I think they just make up fake numbers on a fake website.

Charlie Smith · Darwin, Australiaanswered 28d ago
6

Hang in there. It's a brutal lesson, but you're not alone. I got scammed by something similar last year – different platform, same story. They promised massive returns on forex trading, then hit me with 'withdrawal fees.' I ended up losing about £5,000. I reported it to Action Fraud here in the UK, but honestly, it felt like shouting into the void. The scammers are just gone, the website's down. What I learned is to *always* check if the platform is regulated by a body like the FCA (UK) or BaFin (Germany). If they aren't, walk away. Fast.

Jack Roberts · London, United Kingdomanswered 28d ago
3

Hey, chin up. What you're describing is a super common scam tactic. They lure you in with the promise of big gains and then invent fees to prevent you from ever accessing your money. It's a tough situation, but the best thing you can do now is *not* send them any more money. Seriously, cut your losses there. You can also report them to the CFTC if you used any USD. They might not get your money back, but it helps build a case against these crooks.

Steven Moore · Dallas, USAanswered 28d ago
4

Okay, hold up. 'Network upgrade fee' paid in crypto to release *your own* profits? That sounds fishy as heck. Why would *you* pay to upgrade *their* network? Makes zero sense. Platforms usually deduct fees from the withdrawal itself, not demand upfront payment like that. Did you research this platform independently or just go by Instagram ads? Be super careful with social media investment promises. Try Nethertrace.co; they sometimes have info on scam sites and brokers.

Emma Tremblay · Edmonton, Canadaanswered 28d ago
5

This is exactly how my buddy got scammed. He thought he was making a killing on some app, then they wanted a 'tax payment' before he could withdraw. It was 20% of his supposed earnings. He sent it. Then they wanted a 'legalization fee.' He was heartbroken when he realised it was all fake. You're not stupid; they're good at what they do, unfortunately. Check if the platform is listed on any official financial regulator sites like ASIC in Australia or the SEC in the US. If it's not, it's almost certainly a scam.

Jessica Williams · Atlanta, USAanswered 28d ago
3

Oh wow, that's rough. It's completely understandable that you're freaking out. That 'network upgrade fee' sounds incredibly suspicious. Please, please don't send them any more money. These kinds of platforms are designed to look legitimate, but they're often scams. Your bank is right, they likely can't help much with crypto. You could try reporting it to the police, but focus on preventing further losses first. Take a deep breath; we've all been tempted by quick money schemes.

Emma Bergeron · Calgary, Canadaanswered 28d ago
5

Same thing happened to me. They showed me I had like $30,000 made on this fake trading site, but then they wanted $5,000 for a 'security deposit' to unlock it. I was so tempted. I almost sent it. My dad talked me out of it, thank goodness. He said, 'If it sounds too good to be true, it probably is.' He's old school, but he's right. It's always on Instagram or Facebook. They just want your money. I'm out $1,500 from earlier deposits. It's a scam, 100%.

Sophie de Jong · Groningen, Netherlandsanswered 28d ago

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