Spokane City Council has unanimously voted to ban cryptocurrency ATMs within city limits, making it the first city in Washington state to take such a decisive stand against the growing tide of crypto-related scams. The ban, approved on Monday, June 16, 2025, comes in direct response to a “significant increase in scams” that have defrauded local residents of thousands of dollars.
The measure, championed by Council member Paul Dillon, aims to dismantle a “preferred tool for scammers looking to defraud unsuspecting victims.” Dillon emphasized the urgent need for protection, stating, “This will ban future ones, as well as remove existing kiosks. We see a lot located in poor neighborhoods, convenience stores, grocery stores.”
The ordinance highlights the alarming rise in financial fraud facilitated by these kiosks. According to the FBI, in 2023 alone, a staggering $5.6 billion was lost to cryptocurrency kiosk-related scams nationwide, with Washington state accounting for $142 million of that total.
Devastating impact of scams
Spokane Police Department Detective Tim Schwering, who has witnessed the devastating impact of these scams firsthand, underscored the difficulty in recovering lost funds. “They’re scamming people, saying that they need to move their money into cryptocurrency in order to protect it. And by the time the money is into the cryptocurrency, it’s already too late,” Schwering explained. He added that once transferred, these funds are often sent overseas, making recovery nearly impossible for local officials.
Councilman Zack Zappone echoed concerns for vulnerable populations, stating, “There are lots of vulnerable populations that are being preyed upon by these types of machines, and so this is really making sure that we’re taking safeguards for folks in our community so that they don’t get preyed upon and lose a lot of their savings or cash in these machines.”
The ban represents a proactive approach by Spokane to safeguard its citizens from a rapidly evolving form of financial crime. While crypto ATMs offer a gateway to virtual currencies, city officials determined their primary use in the region had shifted to facilitating fraudulent activities, prompting this unprecedented municipal action.
