Spokane Bans Bitcoin ATMs Citing Surge in Scam Complaints

Spokane Bans Bitcoin ATMs Citing Surge in Scam Complaints

In Summary

  • Spokane bans all Bitcoin ATMs citywide after scam surge
  •  11,000 complaints nationwide; $246M in losses this year
  •  FBI says seniors were primary scam targets
  •  City follows other U.S. municipalities in enacting bans


Catenaa, Friday, June 26, 2025-The Spokane City Council has unanimously voted to ban all cryptocurrency ATMs within city limits, responding to a sharp rise in scams linked to Bitcoin kiosks that targeted elderly residents and defrauded victims of millions of dollars.

The ordinance, passed Monday, directs operators to remove around 45 crypto ATMs from convenience stores and gas stations across the city. Council Member Paul Dillon, who introduced the measure, said the move was a proactive step to shield vulnerable residents from predatory schemes involving virtual currencies.

Police detective Tim Schwering told the council he investigated numerous cases where funds deposited into these machines ended up in countries like China, North Korea and Russia. He said fraudsters often posed as tax officials, threatening victims, many of them senior citizens, with jail unless they used the kiosks to buy cryptocurrency.

“This is a vital first step in protecting Spokane residents,” Schwering said, applauding the ban.

The FBI recorded nearly 11,000 crypto ATM-related complaints across the U.S. in 2024, totaling more than $246 million in losses. In Washington state alone, crypto ATM scams accounted for $141 million in damages. Victims over the age of 60 lost $107 million, the agency reported.

Major operators such as Coinflip and Bitcoin Depot have kiosks in Spokane but must now dismantle their local operations.

Other cities, including Stillwater, Minnesota, enacted similar bans earlier this year, signaling a growing national trend toward stricter oversight.

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