The authorities of Spokane, the second largest city in the state of Washington, have banned the use of crypto ATMs due to the rise in cases of fraud involving digital assets.
Crypto ATMs have become a favored tool for scammers looking to deceive unsuspecting victims, and our ban will protect vulnerable residents of Spokane from fraud involving devices with virtual currency," said city council member Paul Dillon. The decision that all devices must be dismantled within 60 days was made unanimously by city council members. If operators fail to do so on time, they face administrative penalties and revocation of their business license.
Currently, there are only 10 crypto ATMs installed in Spokane. This is the first city in the state of Washington to impose a ban on the devices. However, such restrictions may soon affect other regions of the U.S. as the number of fraud cases continues to rise.
In April, the FBI reported that in 2024, there were nearly 11,000 complaints filed and the losses from crypto ATM fraud exceeded $246 million, which is a 31% increase compared to 2023. Moreover, two-thirds of the victims are people over the age of 60.
