FTC Reports Butterfly Labs Mined on Customers' Bitcoin Miners
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....
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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 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
The FTC proceedings against troubled Bitcoin mining company Butterfly Labs (BFL) continue. In a document submitted today, the Court revealed its decision to continue the case without granting a preliminary injunction against BFL. The Court has formally denied the Plaintiff's request for a "preliminary injunction, asset freeze, appointment of a receiver, and other equitable relief." Previous reports of the court proceedings in Kansas had revealed that the presiding Judge Wimes may be interested in allowing BFL to reopen. Butterfly Labs was first shut down at the end of September when the....
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....
Finally, after more than a year of waiting, those who preordered the 5GH/s Jalapeno ASIC Bitcoin miner from Butterfly Labs should start receiving their orders. Butterfly Labs announced today that nearly every Jalapeno order through July 3rd 2012 has been shipped out. They have promised that every backlogged order will be shipped within the next 90 days and this morning they posted a picture up of over 100 units that were on their way out the door. Butterfly Labs has been the source of much excitement and almost equal scorn since they started taking orders for their much anticipated ASIC....