Spokane, the second largest city in the state of Washington, has banned crypto ATMs in response to a promotion of scam activity targeting local residents.
Spokane City Council Says On Monday it became the first city in Washington to ban cryptocurrency ATMs Following a united vote.
The proposal was proposed by Council member Paul Dillon, who helped to pass the ban, said that crypto ATMs had “became a preferred tool for scammers looking for undoubtedly victims,” and the ban would “protect weak residents of Spokane from scams involving virtual kiosks.
Dillon said Local newspapers reviews that the proposal “will prohibit the future, as well as remove existing kios. We see many located in poor neighborhoods, comfort stores, grocery stores.”
According to OrdinanceThe city of Spokane has seen a “significant increase in scams derived from the use of cryptocurrency kiosks, and there has been a stable increase among victims who have lost thousands of dollars.”
The command added that it provides a tool “to protect consumers from individuals who rely especially on virtual currency to deceive others.”
Monitoring impact
Crypto ATM operators have 60 days to remove twelve -two kios nationwide or face civil offenses and business license recovery.
On Tuesday, the Spokane City Council said it would monitor the development and report if the ordinance had a measuring impact on the frequency of reported crimes involving crypto kiosks.
Hotbed for scammers
Police Tim Schwering Reported The council said he found many cases where the money fed to these kios would “end in places like China, North Korea, Russia.”
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He told the criminals Meet Law enforcement or tax officials, telling victims to buy crypto at ATMs to protect their money or avoid jail time.
“They are writing people, saying they need to move their money to cryptocurrency to protect it,” Schwering said, according to a speaker’s review. “By the time the money is in cryptocurrency, it’s too late.”
Crypto kiosk scams surge
The FBI reported In April nearly 11,000 complaints and over $ 246 million in losses associated with crypto ATM scams in 2024, a 31% increase from 2023.
Scammers also target The elderswith two-thirds of victims of Kiosk fraud of the crypto and scam over 60, it noted.
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