Spokane City Council imposes a ban on crypto ATMs in the city to combat increasing scams, providing operators 60 days to dismantle machines.
Crypto ATMs Banned in Spokane Amid Growing Scam Concerns
Following an alarming rise in fraudulent activities, Spokane City Council has imposed a citywide prohibition on cryptocurrency ATMs. The council, governing the second-largest city in Washington state, voted unanimously for the ban, providing operators a two-month period to disassemble the existing machines.
Scammers’ Tool of Choice: Crypto ATMs?
Council member Paul Dillon, a key proponent of the ban, highlighted that crypto ATMs have increasingly become a favorite gadget for fraudsters to deceive unsuspecting victims. According to Dillon, the prohibition is aimed at shielding susceptible residents from falling prey to scams linked to virtual currency kiosks.
The council member relayed to The Spokesman-Review, a local news outlet, that the newly enacted measure is designed to eliminate the existing kiosks and prevent future installations, especially in disadvantaged neighborhoods and areas with convenience and grocery stores.
Surge in Crypto Scams
Spokane City has witnessed a substantial increase in scam incidents resulting from the use of cryptocurrency kiosks, with victims losing significant amounts of money. This ordinance seeks to safeguard consumers and effectively combat fraud linked to digital currencies.
Tracking the Outcomes
Post the 60-day period stated for crypto ATM removal, the Spokane City Council intends to monitor and evaluate the impacts of this regulation. Specifically, they plan to assess whether the prohibition leads to a noticeable decrease in crime rates associated with crypto kiosks.
A Playground for Fraudsters
Police detective Tim Schwering shared with the council that money deposited into these kiosks often lands in nations like China, North Korea, and Russia. He added that criminals, impersonating law enforcement or tax officials, mislead victims into investing in crypto via these ATMs under the guise of protecting their money or evading arrest.
Increasing Crypto ATM Scams
In its annual report, the FBI noted an almost 31% increase in complaints and losses exceeding $246 million related to crypto ATM scams in 2024, compared to the previous year. The elderly were found to be particularly vulnerable, with two-thirds of crypto kiosk fraud victims aged above 60.
