Spokane crypto ATMs banned as scam reports skyrocket in the Washington city

Spokane, Washington’s second-largest city, has taken a drastic step to protect its residents from cryptocurrency scams. In a unanimous vote, Spokane crypto ATMs were banned, giving operators just 60 days to remove the machines or face penalties.

The move comes after a sharp rise in fraud cases, with criminals exploiting vulnerable individuals through these kiosks.

Council member Paul Dillon, who spearheaded the ban, called Spokane crypto ATMs a “preferred tool for scammers” and emphasized the need to shield residents from financial harm. The ordinance targets both existing and future machines, many of which are concentrated in low-income neighborhoods.

Why Spokane is targeting crypto ATMs

The decision follows alarming reports of Spokane crypto ATMs being used in elaborate fraud schemes. Victims, often elderly or financially insecure, were tricked into depositing money under false pretenses. Scammers posed as law enforcement, tax officials, or even tech support, convincing people to transfer funds via these kiosks—only for the money to vanish overseas.

Detective Tim Schwering of the Spokane Police Department revealed that stolen funds frequently ended up in countries like China, Russia, and North Korea.

“Once the money hits the blockchain, it’s gone,” he warned.

The FBI’s latest data underscores the urgency: in 2024 alone, crypto-related scams resulted in $246 million in losses, with Spokane crypto ATMs playing a significant role.

How the ban will work – and what happens next

Under the new rules, all Spokane crypto ATMs must be removed within 60 days. Operators who fail to comply risk fines, civil infractions, and even business license revocation. The city will also monitor whether the ban reduces scam reports—a key metric for evaluating its success.

Dillon noted that many kiosks were strategically placed in convenience stores and grocery markets, areas frequented by potential targets.

“This isn’t about opposing cryptocurrency,” he clarified. “It’s about shutting down a pipeline for fraud.”

A growing trend: Crypto ATM regulations tighten nationwide

Spokane isn’t alone in its crackdown. Across the U.S., cities and states are imposing stricter rules on Spokane crypto ATMs and similar kiosks. Australia recently rolled out new regulations, while the FBI continues to highlight the risks, especially for seniors.

Critics argue that outright bans may push transactions underground rather than curb crime. However, Spokane officials believe the temporary removal of Spokane crypto ATMs will disrupt scam networks long enough to implement better safeguards.

What victims of crypto ATM scams should do

If you’ve been targeted by fraud involving Spokane crypto ATMs, authorities urge you to:

1. Report immediately – Contact local police and the FBI’s Internet Crime Complaint Center (IC3).

2. Gather evidence – Save receipts, transaction IDs, and any communication with scammers.

3. Alert your bank – Some financial institutions can freeze suspicious transfers.

The future of crypto in Spokane

While the ban on Spokane crypto ATMs is a setback for some crypto enthusiasts, advocates hope it will lead to more secure alternatives. City officials have hinted at future discussions around regulated, transparent digital asset services—but for now, the focus is on damage control.

As the 60-day deadline approaches, all eyes are on Spokane. Will this bold move stem the tide of fraud? Only time will tell.