Washington city orders removal of crypto ATMs over rising scams
Around 50 crypto ATMs must be removed within 60 days as Spokane moves to tackle kiosk-related scams.
The Spokane City Council in Washington State has unanimously voted to ban virtual currency kiosks across the city, including crypto ATMs. The ordinance targets approximately 50 machines found at convenience stores, gas stations, and major retailers such as Safeway and Walgreens.
Operators must remove their kiosks within 60 days or risk fines and potential loss of business licences.
Council members highlighted the growing threat these kiosks pose to vulnerable residents, particularly seniors, who have fallen victim to scams. Council Member Paul Dillon described the machines as ‘preferred tools’ for fraudsters exploiting the decentralised nature of cryptocurrency and limited tracking options for stolen funds.
The council initially sought state-level regulation, but after legislative delays, Spokane chose local action to address the issue.
The FBI estimates $5.6 billion of the $6.5 billion lost nationwide to fraud, scams, and extortion in 2023 involved crypto kiosks. Seniors accounted for nearly half of these losses despite being a smaller percentage of the population.
Spokane Police Detective Tim Schwering reported numerous cases where victims were deceived into buying crypto through kiosks after being contacted by scammers impersonating law enforcement or tax officials. Tragically, several local suicides have been linked to these scams.
Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!