Spokane Cracks Down: Bitcoin ATMs Banned After 11,000 Scam Reports in 2024

Spokane just pulled the plug on crypto's wild west—banning Bitcoin ATMs citywide. The move comes after a tsunami of 11,000 fraud complaints flooded authorities last year.

Scam epidemic forces crypto cold turkey

No more quick-and-dirty crypto conversions at corner stores. The ban hits right where it hurts—convenience—after grifters turned digital gold into fool's gold for thousands.

Regulators play whack-a-mole with crypto crime

City officials swung the regulatory hammer hard, proving even decentralized finance isn't immune to old-fashioned government clamps. Another win for bureaucracy over 'bankless' dreams.

Bonus jab: At least Wall Street's sharks wear suits when they take your money.

Scammers Disguised as Revenue Personnel Target Spokane Residents

Police detective Tim Schwering initially raised the issue of increasing crypto ATM fraud cases.

“I’ve had a number of cases where this money that’s placed in there will end up in places like China, North Korea, Russia,” Schwering told the Council. “What is happening is people are getting scammed.”

Further, scammers pose as representatives from the Internal Revenue Service and ask users to buy crypto from kiosks to protect their money. In some cases, they even threaten victims, particularly senior citizens, to either follow their instructions or face jail term.

Schwering applauded the Council’s decision to ban all crypto kiosks in Spokane. “This is a vital first step in protecting Spokane residents,” he said.

Nearly 11K Crypto ATM Scam Complaints Received in 2024: FBI

According to the Federal Bureau of Investigation (FBI) estimates, there were nearly $5.6 billion in losses due to crypto ATM scams in the US. The losses amounted to over $141 million in Washington alone.

The FBI 2024 report said that the agency received 10,956 complaints, amounting to $246.7 million in losses. The report added that complaints from residents increased by 99% from 2023.

Scammers particularly target victims above 60. The FBI recorded $107 million in losses in this age category alone in over 8,000 cases.

“There were cases I was confident I knew the name and bank account, but he was sitting in mainland China, and there was nothing I could do about it,” Schwering told early this month to the Spokane Council.

Other cities like Stillwater, Minnesota have barred crypto ATMs in April and more cities in that state are considering similar regulations.