The 25,000 is the amount the person carried so they automatically said the taxes take half which left me with 12,500 is this tax deal true
With the limited facts you have given, it is hard to determine what is going on - but, I am suspicious.
First of all, it is common to have taxes "withheld" in a variety of transactions. These can include withdrawals from retirement accounts, winnings from slot machines, etc. And as an example, it is common for retirement withdrawals to include Federal withholding of approximately 30% and State withholding to be around 10% - which is less than the 50% you described.
Secondly, events such as accidents typically allocate part of the settlement award for reimbursed expenses - so, again, why would you need a withholding rate of 50%.
If it was truly for taxes, then they should be able to show you the paperwork they used to report to the IRS what is going on.
You really should contact a lawyer to review your facts and circumstances.
