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Council hears staff recommendation to ban cryptocurrency kiosks after scams target seniors
Summary
Police presented evidence of crypto kiosks used in scams that target elderly residents and recommended an ordinance to ban kiosks in Tremonton; staff said the city attorney drafted an ordinance and cited HB 72, noting moderate litigation risk but no lawsuits reported against similar bans so far.
The council heard a presentation from the police department about cryptocurrency kiosks in Tremonton — devices that function "like an ATM for crypto transactions." Staff described a pattern of fraud in which scammers impersonate law enforcement or IRS agents and instruct elderly victims to transfer funds via kiosks; police said funds transmitted by these kiosks are difficult to recover. "As soon as those transactions are done, that money's gone, and it's really untraceable," the presenter told the council.
Staff recommended pursuing an ordinance to remove kiosks from the city and said the city attorney has drafted language modeled on a Garland ordinance; staff noted HB 72 sets minimum statewide requirements but does not prevent a local ban. Councilors asked for a review clause so the ordinance can be reexamined as technology changes; staff supported language allowing the council to reassess the policy in six months to a year and confirmed legal review had found a moderate risk of challenge but no reported lawsuits to date in other cities that adopted similar measures.
