Washington’s Spokane City Bans Bitcoin ATMs, 11,000 Scam Complaints Received in 2024

The city of Spokane in the US state of Washington has banned crypto kiosks within city limits. The Spokane City Council has directed existing crypto ATM operators to remove dozens of machines found in convenience stores and gas stations.

The Council, on Monday, voted unanimously on an ordinance that eliminates and prohibits crypto ATMs located within the Spokane city.

According to a local report, the overall ban arrives as the city is seeing an uptick in scams related to Bitcoin kiosks.

“This ordinance will protect vulnerable Spokane residents from scams involving virtual currency kiosks, and I am proud we are the first city in the state to move this legislation forward,” said Council Member Paul Dillon, who presented the ordinance.

Per Coin ATM Radar data, there are nearly 45 Bitcoin kiosks in and around Spokane. Some of the well-known Bitcoin ATM operators in the city include Coinflip and Bitcoin Deposit.

Police detective Tim Schwering initially raised the issue of increasing crypto ATM fraud cases.

“I’ve had a number of cases where this money that’s placed in there will end up in places like China, North Korea, Russia,” Schwering told the Council. “What is happening is people are getting scammed.”

Further, scammers pose as representatives from the Internal Revenue Service and ask users to buy crypto from kiosks to protect their money. In some cases, they even threaten victims, particularly senior citizens, to either follow their instructions or face jail term.

Schwering applauded the Council’s decision to ban all crypto kiosks in Spokane. “This is a vital first step in protecting Spokane residents,” he said.

According to the Federal Bureau of Investigation (FBI) estimates, there were nearly $5.6 billion in losses due to crypto ATM scams in the US. The losses amounted to over $141 million in Washington alone.

The FBI 2024 report said that the agency received 10,956 complaints, amounting to $246.7 million in losses. The report added that complaints from residents increased by 99% from 2023.

Scammers particularly target victims above 60. The FBI recorded $107 million in losses in this age category alone in over 8,000 cases.

“There were cases I was confident I knew the name and bank account, but he was sitting in mainland China, and there was nothing I could do about it,” Schwering told early this month to the Spokane Council.

Other cities like Stillwater, Minnesota have barred crypto ATMs in April and more cities in that state are considering similar regulations.

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