City of Sterling Heights approves new ordinance to crack down on cryptocurrency scams

STERLING HEIGHTS, Mich. – The city of Sterling Heights is taking action against rising cryptocurrency scams with a new ordinance introduced by the city council on Tuesday night.

This year alone, the Sterling Heights Police Department has investigated 23 fraud cases involving cryptocurrency machines, resulting in losses totaling more than $542,000.

The city is home to 27 of Bitcoin ATMs—more than any other municipality in Macomb and Oakland counties.

The ordinance will require businesses to obtain special licenses for crypto ATMs, mandate ID verification for transactions, and implement spending limits for first-time users.

The city says the measure aims to protect vulnerable residents while maintaining access to digital currency services.

How the Scams Operate

Investigations reveal a consistent pattern: scammers pressure victims, particularly seniors, into depositing cash into Bitcoin ATMs through deceptive phone calls.

Once converted to cryptocurrency, the funds become virtually untraceable and are rarely recovered.

“While preparing for tonight’s presentation, two cases came across my desk. $20,000 each,” said Capt. Colleen Hooper with the Sterling Heights Police Department.

Enhanced Consumer Protections

The new regulations include several key safeguards:

• Mandatory business licensing for ATM operators

• Required ID verification for transactions

• Prominent fraud warning displays

• Transaction limits for new users

• Customer service hotline requirements

Existing businesses and operators must comply with the new regulations by March 31, 2026.

The ordinance establishes a framework for regular inspections and enforcement, with violations resulting in potential license suspension or revocation.

For more information about the new regulations or to report suspicious activity, residents can contact the Sterling Heights Police Department.