APPLETON (NBC 26) — Appleton’s Common Council will vote tonight on whether to allow the Appleton Police Department to open a cryptocurrency account to assist those impacted by cryptocurrency scams.
- Appleton Common Council to vote on allowing police to open a cryptocurrency account for scam victims
- Goal is to repay victims in U.S. dollars, as many don’t have crypto wallets
- Alderman Sherri S Hartzheim says Appleton is “probably behind the times” on implementing this system
- Police currently store seized cryptocurrency on USB drives, which complicates returning funds
(The following is a transcription of the full broadcast story)
The city and police department are hoping to repay crypto scam victims in U.S. dollars because they say most victims don’t have ways of accepting crypto back directly.
Alderman Sherri S Hartzheim, who sits on the Appleton Finance Committee, says the department is a little behind on implementing this kind of system.
“We’re probably behind the times. We’re probably one of the last police departments to come up with this sort of thing just because this kind of thing hasn’t hit Appleton, but I guess now it has,” Hartzheim said.
The Finance Committee recently approved a plan for police to open a cryptocurrency account on Coinbase after someone was scammed into putting money into cryptocurrency at a Bitcoin ATM.
The plan started earlier this month when Police Lt. Adam VanZeeland told the committee that the department currently must hold seized cryptocurrency on USB drives.
According to a request letter from the Appleton Police Department, most victims are “unaware of what cryptocurrency is” or “do not have a crypto wallet,” leaving them with no way to receive their money back in crypto.
Dr. Preston D. Cherry, Director of the Center for Financial Wellness at UW-Green Bay, says there are so many cryptocurrencies that he’s lost count.
“Some of these coins don’t do anything,” Cherry said.
He believes the plan will work as long as police can convert the cryptocurrency into U.S. dollars without losing any value.
“We hear about the Fed a lot, our treasury system, and the dollars that are in circulation. That’s the cash that we hold in our hands,” Cherry explained.
Hartzheim says although one scam kickstarted the plan, she expects more people will be defrauded, making this account a useful tool.
“I expect there will be more people who will be defrauded,” she said.
Now that the Appleton Finance Committee has approved the plan, the vote goes to the Appleton Common Council for review. If approved, the account will be created.
Read More: Appleton Police, council creating plan for crypto scam victims
