FTC Denies Preliminary Injunction Against Bitcoin Mining Company Butterfly Labs (BFL)
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....
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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....
Butterfly Labs Inc. has spoken out to Bitcoin Magazine for the first time since reaching a settlement with the Federal Trade Commission and denies using customers’ Bitcoin mining machines for their own profit. As a Bitcoin mining company, the last 18 months haven’t been easy for Butterfly Labs. Until recently, the company had remained silent over allegations that it had kept upfront payments from customers’ even when it failed to deliver the hardware and that it had been using customers’ Bitcoin mining machines before shipping them. Now, though, after signing a court order on February 25,....
The drama involving Butterfly Labs continues, it appears. And while the Federal Trade Commission (FTC) has sought to put the Kansas-based company out of operation through an injunction, it would seem the Butterfly Labs will continue coasting along for a bit longer. A Stipulated Interim Order was entered today by the United States District for the Western District of Missouri, allowing the bitcoin mining hardware manufacturer to unlock their doors and continue working. The company, which produces miners like the Monarch and Jalapeño, issued the following statement Thursday (sent to us by....
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....
Butterfly Labs has resumed shipping its Monarch hardware and issuing bitcoin refunds to select customers. The embattled bitcoin mining company issued a statement earlier this week via its website and redesigned the platform to offer services to customers whose orders have not been fulfilled. The update follows Butterfly Labs' recent legal win against the US Federal Trade Commission (FTC) on 15th December when a US District Court rejected a request by the FTC for an injunction, asset freeze and appointment of a receiver. Following the ruling, BFL was free to resume business. However, the....