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Springfield city councilors will consider eliminating cryptocurrency kiosks after police and city officials say residents were scammed out of nearly $1 million.
The kiosks, also known as Bitcoin ATMs, look like most other ATMs and are often found in places like convenience stores or liquor stores. The kiosks allow people to purchase, sell or transfer virtual currency like Bitcoin.
Springfield Mayor Domenic Sarno introduced the proposed ordinance this week, arguing crypto kiosks have targeted "innocent people, especially our senior citizens."
"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," Sarno said in a statement.
The proposed ban would require the kiosks be removed within 15 days the ordinance passes.
The Springfield Police Department said they've investigated nearly 50 cases in which residents or visitors were defrauded out of $968,528 between January 2025 and July 2026.
According to FBI data, Massachusetts saw 296 complaints about scams involving these types of ATMs last year — with nearly $7 million reported in losses.
Springfield police officials said the most common scheme involved scam callers pretending to be law enforcement, and that the fraudsters "use fear and urgency" to get victims to believe they need to pay a 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 Springfield City Council will vote on the proposed ordinance in December.
If passed, the city will join a handful of other Massachusetts communities that have banned Bitcoin ATMs, including Gloucester, Framingham, Ludlow and Haverhill.
