FTC: Butterfly Labs Case Not Part of 'War on Bitcoin'
The Federal Trade Commission (FTC) announced yesterday that it had shut down Butterfly Labs following approval by a US judge, and for many outraged customers, the closure is the end of a long period of uncertainty. Though initially a market leader in the bitcoin mining space, the last few months of the Missouri-based company's operations were defined by manufacturing delays, troubled public image efforts and looming legal problems. Speaking to CoinDesk, FTC attorney Leah Frazier, who works for the agency's Division of Financial Practices, said that the investigation began after it received....
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A week ago, the Federal Trade Commission (FTC) shut down Butterfly Labs (BFL), one of the reasons for this being that "consumers who have purchased the machines or services cannot use them to generate Bitcoins because Defendants [Butterfly Labs] never provide them with the machines or services." The FTC released new court filings today for its Butterfly Labs case. The most recent report by the FTC against Butterfly Labs is that they mined for bitcoins on their customers' miners before shipping them (if they even shipped them at all), and didn't tell the customer: Fraud. New Evidence....
According to BizJournal coverage of the Butterfly Labs (BFL) FTC case, federal Judge Mark Wimes may be considering allowing the tainted Bitcoin mining company to reopen its doors in an attempt to make money to pay back customers from around the world. Butterfly Labs has been notorious in the Bitcoin mining space for failing to deliver on its promises, due to intentional and malicious business practices, according to the FTC. The FTC first shut down Butterfly Labs in September of 2014. Butterfly Labs' lawyer, Jim Humphrey of Polsinelli PC, emphasized to the judge that BFL had been fully....
Butterfly Labs was one of the very first mining firm is now in deep trouble as US Goverment is taking legal actions against them. Butterfly Labs was accused of fraud and misrepresentation. FTC documents say that the companies assets were frozen. The story began with really upset customers who failed to received their pre paid miners. Butterfly Labs has violated Section 5(a) of the FTC Act. BFL were basically engaging in “unfair or deceptive business practices in or affecting commerce”. We have contacted butterfly Labs to get some information regarding the shut down but they said
Three weeks ago, the Federal Trade Commission shut down Butterfly Labs. Butterfly Labs is a company that sells Bitcoin mining hardware. It's been accused of scamming and lying to customers time and time again. Recently, the Federal Trade Commission (FTC) reported that Butterfly Labs was lying to customers in multiple ways, one being that they mined on their customers' hardware for extended periods of time before shipping it. This morning, Butterfly Labs tried to dismiss the FTC's complaint. Also read: FTC Shuts Down Butterfly Labs... Finally. The FTC claims that Butterfly Labs spent their....
Butterfly Labs has agreed to settle the Federal Trade Commission’s charges of making misleading claims about their products to their customers. In a lawsuit that has dragged on since September 2014, the Kansas-based Bitcoin company presold computer hardware that was optimized for mining Bitcoin, charging as much as $30,000 for the specialized hardware. According to the U.S. trade watchdog FTC, Butterfly Labs was taking orders for Bitcoin mining machines, but very few machines were actually shipped, as Butterfly Labs was building and using the hardware to mine bitcoin for itself. In the few....