Spokane's Bold Move Against Cryptocurrency ATM Scams

In the first half of 2025, the FBI reported that $240 million was lost to cryptocurrency ATM scams, marking a significant increase compared to 2024. Spokane Police Detective Tim Schwering has observed a troubling rise in crypto-related crimes since 2023, noting that victims often include vulnerable individuals, such as the elderly, who are targeted by scammers posing as romantic interests or government agents. These scams have devastating consequences, with some victims losing their life savings, leading to tragic outcomes, including suicides.

CNBC

In response to the alarming trend, Spokane Councilman Paul Dillon initiated efforts to combat these scams by proposing a ban on crypto ATMs in the city. Despite an initial statewide ban attempt that did not succeed, Dillon's local ordinance passed unanimously in June 2025. The resolution has allowed businesses a grace period to remove the machines, reflecting a proactive approach to protect residents from fraud.

CNBC

Spokane's ban is among the first in the United States, following a similar ordinance in Stillwater, Minnesota. Dillon expressed optimism that the Washington state legislature might consider a statewide ban in its upcoming session to prevent the relocation of these ATMs to neighboring areas. Meanwhile, states like Arizona, Arkansas, and Vermont are also exploring tighter regulations on crypto ATMs, and cities such as St. Paul, Minnesota, are contemplating similar bans.

CNBC

While some experts advocate for the removal of crypto ATMs to reduce fraud, others warn of potential unintended consequences. Alex Davis, founder and CEO of Mavryk, argues that eliminating these machines could hinder financial privacy and access for underbanked populations. He emphasizes that crypto ATMs provide a crucial service by facilitating cash-to-crypto conversions, particularly for those who may not have access to traditional banking services. Davis points out that the high fees associated with these transactions are often a trade-off for privacy and immediacy.

CNBC

Detective Schwering highlighted the frustration of law enforcement in addressing these scams, as many perpetrators operate from overseas, making arrests challenging. Dillon noted that the compelling stories of victims motivated the city council's unanimous decision to ban crypto ATMs, reflecting a community-driven response to a growing crisis.

CNBC

While Spokane's ban has been implemented without reported complaints, the effectiveness of such measures in curbing fraud remains debated. Some experts argue that simply removing crypto ATMs does not address the underlying issues of fraud and financial accessibility.

CNBC

• "Cases started flowing my way where people were getting ripped off by cryptocurrency machines." — Tim Schwering, Spokane Police Detective

CNBC

• "The compelling stories moved us into action. There are ideological differences on our city council, but the ban passed unanimously and I am proud." — Paul Dillon, Spokane Councilman

CNBC

• "Eliminating them may reduce certain fraud vectors, but it also removes one of the last public-access tools for financial privacy." — Alex Davis, CEO of Mavryk

CNBC

As Spokane takes a stand against cryptocurrency ATM scams, the broader implications of such regulatory actions continue to unfold, raising questions about the balance between fraud prevention and financial accessibility.

CNBC