The Spokane City Council in Washington State has enacted a ban on cryptocurrency kiosks within the city’s borders. This decision requires all existing cryptocurrency ATM operators to dismantle numerous machines currently located in convenience stores and gas stations throughout Spokane.
In a unanimous vote on Monday, the Council approved an ordinance that officially prohibits the operation of crypto ATMs in Spokane.
This legislative move follows a reported increase in scams associated with Bitcoin kiosks, prompting local officials to take action.
“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,” stated Council Member Paul Dillon, who sponsored the proposal.
Data from Coin ATM Radar indicates that Spokane is home to nearly 45 Bitcoin kiosks, with well-known operators such as Coinflip and Bitcoin Deposit among those affected by the ban.
Scammers Disguised as Revenue Personnel Target Spokane Residents
The issue of rising crypto ATM fraud was initially brought to light by police detective Tim Schwering.
“I’ve encountered numerous cases where money deposited into these machines has wound up in countries like China, North Korea, and Russia,” Schwering informed the Council. “What is happening is people are getting scammed.”
Additionally, some scammers are impersonating Internal Revenue Service representatives, coaxing users into purchasing cryptocurrency from kiosks with threats of jail time if they do not comply. Many of these victims are older individuals who are particularly susceptible to such intimidation.
Schwering commended the Council for its decision to eliminate crypto kiosks in Spokane, describing it as an essential step toward safeguarding the community. “This is a vital first step in protecting Spokane residents,” he remarked.
Nearly 11K Crypto ATM Scam Complaints Received in 2024: FBI
According to estimates from the Federal Bureau of Investigation (FBI), losses from cryptocurrency ATM scams across the United States have reached approximately $5.6 billion, with over $141 million of that total occurring in Washington State alone.
The FBI’s 2024 report noted a staggering 10,956 complaints related to these scams, resulting in losses that totaled $246.7 million. Notably, complaints from Washington residents surged by 99% when compared to the previous year.
Source: FBI
Victims over the age of 60 have been particularly targeted, with the FBI recording losses of $107 million within this demographic across more than 8,000 cases.
“There were instances where I was certain I knew the name and bank details of the scammer, but in reality, they were located in mainland China, leaving me with no options for recourse,” Schwering mentioned earlier this month during discussions with the Spokane Council.
Other municipalities, such as Stillwater, Minnesota, enacted similar bans on crypto ATMs earlier this year, and additional cities in the state are reportedly contemplating analogous regulations.
The post Washington’s Spokane City Bans Bitcoin ATMs, 11,000 Scam Complaints Received in 2024 appeared first on Finance Newso.
