Local
Springfield Weighs Ban on Bitcoin ATMs After Nearly $1 Million in Scam Losses
Mayor Domenic Sarno has proposed an ordinance to remove cryptocurrency kiosks from Springfield within 15 days of passage, citing nearly $1 million in losses to fraudsters. The City Council votes in December.
Springfield Mayor Domenic Sarno has introduced an ordinance that would ban cryptocurrency kiosks, commonly known as Bitcoin ATMs, from the city, following police reports that residents and visitors were defrauded out of nearly $1 million in a little over a year.
The proposal, announced this week, would require the machines to be removed within 15 days of the ordinance's passage. The Springfield City Council is scheduled to vote on the measure in December.
Sarno said the kiosks have become tools for scammers targeting vulnerable residents, particularly older adults. "In just over a year, fraudsters and scammers who utilize these machines to target victims have scammed many hardworking and vulnerable people right here in Springfield out of nearly $1 million," the mayor said in a statement.
According to the Springfield Police Department, investigators have handled nearly 50 fraud cases involving the kiosks between January 2025 and July 2026, with total losses of $968,528. The most common scheme involved callers impersonating law enforcement officers and pressuring victims with fear and urgency to pay a supposed fine immediately.
"Once again, no police department, sheriff's department, or government agency will call asking for money in this manner," Springfield Police Superintendent Larry Akers said. "We have seen people scammed out of their life savings, and it is hard to trace and follow once it enters these machines."
The kiosks resemble standard ATMs and are often placed in convenience stores or liquor stores, allowing users to buy, sell or transfer virtual currency such as Bitcoin. Because transactions are largely irreversible and can be routed to anonymous digital wallets, stolen funds are difficult for investigators to recover.
The problem extends beyond Springfield. FBI data shows Massachusetts recorded 296 complaints last year about scams involving cryptocurrency ATMs, with reported losses approaching $7 million. If the ordinance passes, Springfield would join several other Massachusetts communities that have already banned the machines, including Gloucester, Framingham, Ludlow and Haverhill.
The proposed ban reflects growing concern among local officials that the kiosks, while marketed as convenient access to digital currency, function as a low-friction channel for fraud. For Springfield residents, the vote in December will determine whether the city follows other municipalities in shutting the machines down entirely.