Butterfly Labs Faces $5 Million Lawsuit Over Unfulfilled Order
Butterfly Labs is facing a lawsuit for over $5 million that alleges that it was negligent in its business dealings, and even accuses the company of downright fraud. The suit was brought by Martin Meissner, who placed a $62,000 order for BFL miners back in March 2013. Meissner claims he did not received the units or a refund for his payment, according to a report in Ars Technica. The suit was filed in December, and it accuses Butterfly Labs of fraud, negligent representation and breach of contract. Motion to dismiss. Butterfly Labs and its attorneys refused to comment on the matter, but....
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Butterfly Labs, a failed Bitcoin miner manufacturer, has been shut down by the Federal Trade Commission. According to a statement published on the regulator's website, the FTC shut down Butterfly Labs pursuant to a court order obtained from a court in the Western District of Missouri. Also read "We need to talk about Butterfly Labs". This past week, the FTC slapped Butterfly Labs, a Kansas bitcoin miner manufacturer, with a lawsuit. In the civil lawsuit, the FTC found that Butterfly Labs had contravened section 5(a) of the FTC Act by engaging in "unfair or deceptive business practices in....
A law firm made news this week when they announced that a class-action lawsuit has been filed against Butterfly Labs which challenges both the sales and advertising practices of the Kansas-based mining hardware manufacturer. In the complaint, filed by Wood Law Firm, it is alleged that the company might have collected up to $25 million in pre-order payments, using equipment manufactured for customers to mine for themselves as part of a quality assurance testing program. The complaint also alleges that Butterfly Labs used portions of pre-order payments to make loans to shareholders, and even....
Embattled bitcoin mining manufacturer Butterfly Labs has announced that it will resume limited business operations following discussions with the Federal Trade Commission (FTC). The Missouri-based company will not be allowed to serve new consumers when it reopens, and will be restricted to fulfilling existing customer orders. Butterfly Labs further confirmed it will remain under the direction of a court-appointed receiver who will oversee the business. Butterfly Labs suggested that it aims to use this opportunity to rebuild its market perception, which it acknowledged has been impacted by....
BitPay has processed its largest ever single transaction - $1m for bitcoin mining hardware manufacturer Butterfly Labs. This means that, at the current price of $192 per bitcoin, Butterfly Labs received an order for around 5,208 BTC-worth of mining equipment. BitPay then processed this order, depositing the equivalent in fiat currency in Butterfly Labs' bank account. Despite the size of the order, the cryptocurrency payment processor processed it in their usual one-business-day timeframe. Tony Gallippi, co-founder and CEO of BitPay, said: "The speed, reliability, and certainty of payments....
The Federal Trade Commission recently filed civil lawsuit against Kansas-based Butterfly Labs for using "fraudulent" and "deceptive" practices against its customers. The lawsuit was filed in the state of Missouri last week (on September 15th, to be precise), and names three of the company's board members: Darla Drake (also known as Jody Drake), Nasser Ghoseiri, and Sonny Vleisides as defendants. All of this stems from numerous complaints from the bitcoin community over unfulfilled or incredibly delayed orders. Often times, customers who received their delayed orders weren't able to mine to....