So basically buy ETH in Coinbase --> transfer to an "exchange" --> convert to USDT --> do some trading.
Except that the "exchange" may be a scam. Asked for an upfront tax payment on the spot & many more fees when trying to withdraw to the bank. Red flags from what I read online: https://www.youtube.com/watch?v=gHpdnCTv0-g
Made 15% upfront tax payment (the "exchange" only accepts crypto payment) and many more fees.
Not able to receive the withdrawal yet of the "profit" in the "exchange" (reported to FTC, etc)
So in this case, do we still answer Yes to the 1040 question?
I guess if read the word of 1040 question literally "Disposed of a digital asset in exchange or trade for another digital asset"
If so, do we report the ETH --> USDT conversion? What about the other "profit" since technically not receiving the money?
