FTC: Butterfly Labs Held Back Shipments for Illicit Mining
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....
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It's eight months late, but it looks as though Butterfly Labs is finally starting to ship some of its ASIC bitcoin mining equipment to customers. The Kansas-based company has repeatedly delayed customer shipments of its ASIC mining products, which were originally announced last June, and were scheduled to ship starting last October. Customers are getting angry, and the company's representatives aren't helping by trading insults on public forums. On Sunday, though, a Butterfly Labs representative posted on the company's support forum that shipments were beginning. "A few went out Saturday....
Between predictions of a difficulty drop and the recent legal maelstrom surrounding Butterfly Labs, you might think that it was all bad news in the mining community. However, those who have been active in this market segment for long enough know it would take more these events to stop miners from hashing. Read on to learn more about some of the latest happenings in the bitcoin mining world. FTC pleased with Butterfly Labs reopening. The US Federal Trade Commission (FTC) has agreed to allow troubled bitcoin mining hardware company Butterfly Labs to reopen for business, albeit in a limited....
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
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....
Infamous Bitcoin mining company Butterfly Labs (BFL) has reopened and has an updated website following their tussle with the FTC. The FTC started investigating Butterfly Labs in late 2014 because "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." BFL would regularly mine on customers' hardware for days before finally shipping it out. Also read: Judge Considers Allowing Bitcoin Mining Company Butterfly Labs (BFL) to Reopen. Butterfly Labs (BFL) Reopens. The....