Bitcoin Forum

Anybody believe this?

https://bitcointalk.org/index.php?topic=150803.msg8891220#msg8891220

The first thing I would have closed, if I were the FTC, would have been their online presence. Sounds like bullshit, possibly just to talk of BFL.

They were probably looking for documents related to some kind of fraud. The FTC generally does not have the authority to shut down a business, however they can make it effectively the only decision the business owners can make.

I keep an alert for Butterfly Labs on Twitter and Google Alerts; so far, most of the reports are unconfirmed. I'm definitely interested in the developments. Their telephone number (1-800-809-MINE) is always on constant voicemail. They are obviously too hard at work building miners (not).

The amount of details the supposedly two ex employees are using in that thread, and the complete lack of refutation from BFL, makes me think that this could be true... With the alternative still being a conspiracy from BFL to troll us all.

I would somewhat doubt that BFL is trying to troll us as if they were not raided by the FTC they would still be in business and I don't see any scenarios in which trolling would be good for business

Like I said in another thread. I believe "something" happened. Did they get raided, took all their computers, etc? no. but something definitely happened, like the FTC came in with a warrant and searched for whatever they are looking for to build their case. I believe BFL is business as usual. But that will probably change when they start issuing summons..

If nothing happened. Josh, inababa, whatever, or the other bfl trolls would be here saying that we are full of shit.. Thats not happening, thats why I think something happened, just not as bad as the first report made it seem.

I don't believe the FTC has any agents.  They are a bunch of lawyers enforcing "unfair trade practices" and they normally go to court and get injunctions, orders, and fines.  Their actions are listed at http://www.ftc.gov/enforcement/cases-proceedings.  I believe if there is criminal conduct that need agents they refer it to other agencies to take criminal enforcement.  

I found it, the FTC criminal liaison unit works with other agencies if agents are needed:
http://www.ftc.gov/enforcement/criminal-liaison-unit

All federal agencies have "agents" that have the authority to arrest (when legal to do so). There have been instances of people's homes getting raided by the EPA because they were breaking some very vague regulation regarding dumping in the water. In the EPA's case the "agents" came armed with automatic weapons full body armor and shields - the suspects were not armed nor were they suspected of any kind of violent crime.

No, all agencies do not have armed agents.  Here is the list that do:
http://www.bjs.gov/content/pub/pdf/fleo08.pdf

Looks like the FTC filed a civil suit and they did a liaison with Kansas to send in agents.

Link:  http://arstechnica.com/tech-policy/2014/09/feds-label-bitcoin-miner-maker-butterfly-labs-as-systematic-deception/


All the warning signs were there but they did produce two chips so it was really hard to tell.


Complaint dated 09/15/2014:  https://www.documentcloud.org/documents/1303732-5.html

Goto their website and see the official notice.

FTC was answering questions on twitter about BFL @FTC (https://twitter.com/FTC). Scroll down to sept 23rd to see the questions/responses.

any opinion on what would happen next?
https://bitcointalk.org/index.php?topic=150803.8120