The first city in Washington completely bans Bitcoin ATMs due to rampant fraud

The city council #Spokane (state of Washington, USA) has unanimously voted to completely ban cryptocurrency kiosks, including Bitcoin ATMs, following a series of scams that resulted in billions of dollars in losses.

The ban affects approximately 50 active kiosks located in convenience stores, gas stations, Safeway supermarkets, and Walgreens chains. Operators have 60 days to dismantle them, or they will face fines and risk losing their business licenses.

This decision comes after Washington was one of the 10 states most heavily impacted by kiosk scams, with total losses amounting to $368 million. Spokane alone has recorded 3 suicides related to fraud involving machines #ATMcrypto .

According to the FBI, scammers often impersonate government agencies such as the IRS (Internal Revenue Service) or police, threatening the elderly and demanding that they load money onto Bitcoin kiosks to "protect their assets." The elderly account for up to 30% of national losses, despite making up only 17% of the population.

Spokane attempted to push for state-level regulation since late 2024 but was unsuccessful, forcing the city to take action on its own.

⚠️ Spokane's ban serves as a warning about the legal loopholes and risks that crypto kiosks can pose if not strictly regulated.