Spokane Valley Bans 15 Bitcoin Machine Kiosks After Scam Surge
Spokane Valley city council voted unanimously Tuesday to ban the bitcoin machine kiosks tied to a surge of fraud cases in the city. Businesses with the kiosks now have 30 days to remove them before the city can fine owners $250 and revoke business licenses.
Police Chief Dave Ellis said the crackdown follows cases that caused major financial losses, including one that ended in a suicide. He said scammers have used the kiosks to pull money from victims, including elderly people whose life savings were sent through the machines.
Dave Ellis on Valley fraud
Ellis said there are roughly 15 kiosks throughout Spokane Valley, while Coinflip shows six virtual kiosks in city limits. He said the city is trying to make it harder for scammers to get the money before victims send it.
“Those kiosks are a tool to facilitate scams,” Ellis said. “People are being scammed and being directed to use them by bad actors, by criminals, to transfer money to them.”
He also said, “We’ve stopped elderly people who are putting their life savings into these kiosks. They’re being taken advantage of.”
Elijah Jones on kiosk losses
Financial crimes detective Elijah Jones said the kiosks are typically inside convenience stores, gas stations or mini marts. He said once money has been transferred at a kiosk, there is no way to recover it, and the scammer controls the funds.
“We can’t go to the ATM and get it back,” Jones said. “The scammer is the one who controls the money.”
He said the kiosks also carry steep fees, usually 17.5% or 50% per transaction. Jones said the ban is meant to add extra steps so victims realize they are being scammed before they lose money.
Spokane Valley deadline
Several locations, including a Circle K at Pines Road and Valleyway Avenue, removed the kiosks before Tuesday’s vote. A Bitcoin ATM still exists at Broadway Mini Mart, and owners with kiosks in the city now face the removal deadline set by the council.
The vote followed last year’s unanimous Spokane City Council ordinance banning virtual currency kiosks. The FBI reported that in 2023 virtual currency kiosk-aided scams caused nearly $5.6 billion in losses in the U.S., including $141.7 million in Washington.
