<p>If you retained any part of the money in return for performing this service for your friend, then that is subject to income tax and/or capital gains tax payable by you.</p>
<p>But that is relatively unimportant compared to the reality of the situation. More importantly, you are either:</p>
<ol>
<li><p>Being used as a money mule by criminals. By colluding with them to obscure their transactions you are making yourself part of a criminal conspiracy and may find yourself being taken to a police station to answer awkward questions about laundering stolen money associated with some crimes, perhaps really vile crimes.</p>
</li>
<li><p>Being set up as a victim of theft, the fraudulent $2000 deposit will soon be reversed by the bank but the Bitcoins you paid out will not be recoverable.</p>
</li>
</ol>
<p>The second seems most likely and is probably the lesser of the two evils.</p>
<p>Yes you are responsible for your actions and answerable to both the tax authorities and the criminal justice system.</p>
<p>I would permanently cease all contact with this fake friend and consider reporting the deception to the relevant bank and perhaps to the local police.</p>
<hr />
<p>See also</p>
<ul>
<li><a href="https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/money-mules" rel="nofollow noreferrer">FBI - money mules</a></li>
<li><a href="https://money.stackexchange.com/questions/133327/is-this-a-bitcoin-scam">Is this a bitcoin scam</a></li>
<li><a href="https://money.stackexchange.com/q/164061/19497">Friend in need</a></li>
</ul>

CC BY-SA 4.0
2024-11-21T13:41:57.270Z
2024-11-21T14:04:50.153Z
2024-11-21T14:04:50.153Z
RedGrittyBrick
<p>A friend who resides in the UK. Had his company deposit $2,000. In my bank account.  I than bought bitcoin, and transferred this to his wallet. Would there be any taxes on this exchange, and if so am I responsible?</p>

<transactions><taxes>
Will I have to pay taxes on bitcoin sent to a friend
Karen Duffy
# Will I have to pay taxes on bitcoin sent to a friend

(Asked by: username_0 on 2024-11-21)

A friend who resides in the UK. Had his company deposit $2,000. In my bank account. I than bought bitcoin, and transferred this to his wallet. Would there be any taxes on this exchange, and if so am I responsible?

**Tags:** transactions, taxes


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## 1 answers

### Answer by username_1 on 2024-11-21. Score: 1

If you retained any part of the money in return for performing this service for your friend, then that is subject to income tax and/or capital gains tax payable by you.

But that is relatively unimportant compared to the reality of the situation. More importantly, you are either:

1. Being used as a money mule by criminals. By colluding with them to obscure their transactions you are making yourself part of a criminal conspiracy and may find yourself being taken to a police station to answer awkward questions about laundering stolen money associated with some crimes, perhaps really vile crimes.
2. Being set up as a victim of theft, the fraudulent $2000 deposit will soon be reversed by the bank but the Bitcoins you paid out will not be recoverable.

The second seems most likely and is probably the lesser of the two evils.

Yes you are responsible for your actions and answerable to both the tax authorities and the criminal justice system.

I would permanently cease all contact with this fake friend and consider reporting the deception to the relevant bank and perhaps to the local police.

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See also

* [FBI - money mules](https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/money-mules)
* [Is this a bitcoin scam](https://money.stackexchange.com/questions/133327/is-this-a-bitcoin-scam)
* [Friend in need](https://money.stackexchange.com/q/164061/19497)


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