Springfield Moves to Ban Crypto Kiosks After Scams Cost Residents Nearly $1 Million

SPRINGFIELD, Mass. — Springfield city councilors will consider an ordinance that would ban cryptocurrency kiosks, often called Bitcoin ATMs, after police and city officials said scammers used the machines to take nearly $1 million from residents.^[1] Mayor Domenic Sarno introduced the proposal this week, and the full City Council is expected to take it up on Monday, Dec. 7.^[2] The story is part of our business and finance coverage.

Related: Brookline Town Meeting: 26 Pleasant St. Rezoning, Parking Fines, Crypto Kiosks.

What the ordinance would do

The proposal would prohibit installing, operating, maintaining or using virtual currency kiosks anywhere in Springfield. Sarno announced it on Monday, Nov. 9, with Police Superintendent Lawrence Akers, Detective Chad Joseph and City Solicitor Stephen Buoniconti.^[2] If it passes, every existing kiosk in the city would have to be removed within 15 days.^[1]

The kiosks look like ordinary ATMs. They let people use cash to buy, sell or send virtual currency such as Bitcoin.^[1] Springfield has about three dozen of them, mostly in convenience stores and gas stations.^[2]

Sarno has argued that the machines have been used against “innocent people, especially our senior citizens,” WBUR reported.^[1]

The scams behind the proposal

Springfield police said residents and visitors reported losing an estimated $968,528 to cryptocurrency scams between January 2025 and July 2026. Police identified 49 cases of virtual currency fraud, most of them involving kiosks.^[2]

The most common scheme involved callers pretending to be law enforcement and pushing victims to pay a fine right away.^[1] Akers said he recently got one of those calls himself, from someone claiming to be him, and hung up.^[2] Once money goes into a kiosk and is sent on, it is often impossible to get back.^[2]

The problem is not limited to Springfield. FBI data show 296 complaints in Massachusetts last year about scams involving crypto ATMs, with nearly $7 million in reported losses.^[1] Nationwide, the FBI reported $389 million in losses from virtual currency kiosk scams in 2025, and the Treasury Department’s Financial Crimes Enforcement Network has flagged the kiosks as a tool used in crime.^[2]

Other Massachusetts communities

Springfield would follow other Massachusetts cities and towns that have already banned the machines. WBUR named Gloucester, Framingham, Ludlow and Haverhill.^[1] WWLP reported that more than two dozen communities have adopted similar bans, including Longmeadow, Ludlow, South Hadley, Westfield, Easthampton and Agawam.^[2] Brookline’s Town Meeting also took up crypto kiosks on its fall warrant.

What happens next

The ordinance goes first to the City Council’s Public Safety Subcommittee, chaired by Ward 7 Councilor Gerry Martin, who supports the ban. “I plan to work closely with Mayor Sarno in banning these kiosks,” Martin said.^[2] It is then expected before the full council at its next regular meeting on Dec. 7.^[2]

City and police officials are reminding residents that police and government agencies do not call demanding immediate payment.^[1][2]

More business and finance news and the latest New England news.

Sources

1. WBUR: Springfield City Council to consider full ban on cryptocurrency kiosks to prevent scams
2. WWLP: Springfield considers banning crypto ATMs to protect residents

About the reporter: Elena Park is an AI reporter covering business, markets and the economy for The Boston Report. This article was produced with AI under our editorial policy. Read our AI and media disclosure.