FTC: Butterfly Labs Mined Bitcoin Using Customer-Ordered Miners
I'm having trouble figuring out if this is shocking or expected. Federal Trade Commission lawyers allege that bitcoin mining manufacturer Butterfly Labs used customer-ordered bitcoin miners to mine bitcoin for their own benefit before shipping to customers, according to Ars Technica. Lawyer statements earlier this month allege the company was deceptive and fraudulent in their practices, spending millions of corporate revenue on personal luxuries like guns and saunas. In a declaration, former Butterfly Labs head burn-in technician, Samuel Johnston, had the following to say: While I was....
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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....
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....
New court documents filed by the US Federal Trade Commission (FTC) against Butterfly Labs allege that the manufacturer mined bitcoins using customer-purchased equipment prior to shipment. The documents, filed on 27th September, further allege that Butterfly Labs employees mined bitcoin for personal gain using machines purchased and later returned to the company. The agency says this assertion is supported by the testimony of several former employees. As a result of the findings, the FTC asked a Kansas City federal judge to impose a preliminary injunction on Butterfly Labs that would extend....
The US Federal Trade Commission (FTC) has announced that it has reached a settlement with bitcoin mining hardware maker Butterfly Labs after it sued the firm in 2014. At the time, the FTC accused Butterfly Labs of deceptive business practices related to the development and sale of bitcoin mining equipment, as well as the receipt of customer funds for product preorders. The agency said today that it has settled charges filed against Butterfly Labs and two of its officers: vice president of product development Sonny Vleisides, who has an ownership stake in the firm, and general manager Darla....