Scrutiny Intensifies on Crypto ATMs Amid Rising Scam Losses

Law enforcement and policymakers are escalating their focus on cryptocurrency ATMs following reports of $333 million in scam-related losses. Spokane Police Detective Tim Schwering has documented cases since 2023 where victims—often elderly or vulnerable—were duped into depositing funds into crypto ATMs under false pretenses. The money vanished within minutes, frequently traced to offshore destinations like China, Russia, or Nigeria.

Local communities have borne the brunt, with one victim losing $900,000 and others driven to desperate measures. Scammers impersonated romantic partners, government officials, or tax authorities, coercing targets into transferring life savings. Detective Schwering has taken to educating nursing homes and community centers, though jurisdictional limits hinder direct action against perpetrators.

Spokane Councilman Paul Dillon is now pushing for regulatory changes, starting with local ordinances after a proposed state ban stalled. The initiative underscores growing pressure to curb exploitation via crypto ATMs while balancing innovation in digital asset infrastructure.