Bitcoin Mining Company Butterfly Labs Settles Case With Federal Trade Commission for $38.6M
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.....
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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....
Earlier today, it was reported that Butterfly Labs was the target of a Federal Trade Commission civil lawsuit, which alleged the company has conducted fraudulent and deceptive business with customers - many of whom are in the United States. The Federal Trade Commission effectively has put a halt on the Kansas-based company's operations - freezing assets and forcing an injunction that has brought the assembly line to a grinding halt. And Butterfly Labs isn't taking kindly to the actions. In a lengthy statement issued by the company's spokesperson, Butterfly Labs suggests the Federal Trade....
The US Federal Trade Commission (FTC) has announced that bitcoin mining hardware company Butterfly Labs and two of its operators have agreed to settle charges that pointed to the company deceiving customers. The FTC revealed today that bitcoin mining hardware manufacturer Butterfly Labs and two of its operators: part-owner and vice president of product development, Sonny Vleisides and general manager, Darla Drake have settled charges filed against the company. Under the terms of the settlement, Butterfly Labs must pay the FTC $38,615,161, according to the judgement ordered against the....
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....
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....