I recently hired a 3rd party to trace and retrieve my investment which was being scammed. They said they were able to retrieve and sent the investment to an exchange. When I tried to withdraw, the exchange says I must deposit a 10% value of Bitcoin to their wallet to filter the coins which had come from a flagged wallet with fraudulent activities. They claim this is a standard procedure set by Finra. They have now given me 2 weeks to do this before my account is blocked permanently. What should I make of this?
I'm sorry to say, this is a fairly common scam. Often victims of scams are targeted by scammers, telling them they can retrieve their money so long as they pay more.
This exchange wanting you to deposit funds in order to withdraw your "recovered" funds is a scam. If you deposit funds to them, they will not let you withdraw them for some other made up reason.
Please do not give the exchange or the 3rd party any more money.
They are lying to you.