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- Spokane City Council has unanimously passed a citywide ban on cryptocurrency ATMs, giving businesses 60 days to remove all machines
- Officials have linked the surge in local fraud, especially targeting the elderly and low-income residents, to the growing presence of crypto kiosks
- Law enforcement has begun tracking the impact of the ban, hoping it will curb the rising tide of digital currency scams
Spokane has become the first city in Washington state to ban cryptocurrency ATMs, following a wave of fraud cases that city officials say disproportionately target vulnerable residents. In a unanimous vote, the City Council approved an ordinance that requires the removal of all crypto kiosks within 60 days and blocks any future installations. City leaders hope the move will help stem the tide of scams that often begin with a phone call and end with victims unknowingly transferring thousands of dollars into untraceable wallets overseas.
Targeting the Vulnerable
Law enforcement officers say they have seen a consistent pattern in and around Spokane: scammers, often posing as government agents or law enforcement officials, call unsuspecting residents and claim they must pay fines or protect their savings by quickly converting cash into cryptocurrency.
The victims, many of whom are elderly, are directed to the nearest crypto ATM, where they send funds that go straight to the scammers’ wallets. “By the time the money is into the cryptocurrency, it’s already too late,” said Detective Tim Schwering of the Spokane Police Department, who has been tracking these incidents for months.
Council Member Paul Dillon, who co-sponsored the ordinance with Council President Betsy Wilkerson, said the machines have been popping up largely in poorer neighborhoods, creating easy access for criminals who prey on desperation and confusion. Dillon praised on the passing of the ordnance:
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.
Wilkerson added that too often, people without the tools to recognize a scam those being hit the hardest. The new law allows the city to fine businesses that don’t comply and even revoke their licenses if they fail to act.
A National Problem
While Spokane may be the first in Washington to take this step, it joins a growing national conversation about how to rein in crypto-related fraud. In 2024 alone, nearly 11,000 Americans filed complaints involving cryptocurrency ATMs, with losses exceeding $246 million, according to the FBI. In Washington state, reported losses reached over $140 million, with most of the damage falling on those aged 60 and above.
Other states, including North Dakota and Nebraska, have started implementing warning requirements and transaction caps, but Spokane’s total ban is among the most aggressive responses yet. For now, city officials and police will monitor the impact, hoping that removing these machines will make it just a little harder for scammers to find their next target.
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Mark Hunter