Butterflylabs Huge SCAM

[c0de]

Well, i do think they will ship some units. They already shipped them to some users. The problem i think is they don't have enough capacity to produce the required number of units.

Also, see:

http://bfl.ptz.ro/


Everyone and their mom wants a piece of the asic action.

[elgeo]

I myself was VERY excited about those BFL SC things (http://www.butterflylabs.com/products/), but it sounded too good to be true. I was one step before pre-ordering the Mini Rig 'SC' for just $30k, which could deliver 1TH/s (update -> 1.5 TH/s according to the website now!). You know what? Bullshit.

Is butterfly labs mining with those ASICs at the moment? (https://bitcointalk.org/index.php?topic=110290.0)
Hell no! Do you see some huge raise in hashing power? No.
Would it be beneficial to mine on their own devices? Hell yes! More than just selling them.

If circumstantial evidence isn't enough, try simple business logic.  The price is set at $149 for a 3500MH/s chip. At current prices, they would make $149 after about 10.8 days of mining!  So why doesn't Butterfly Labs just run them for 10.8 days instead of selling them?  Then they'd have $149 and the chips lol.  I mean seriously, read those last 2 sentences again, people.  You think they're not mining with them?  I can't be the only one that realizes this.  From a business perspective, if you had an investment that would pay off 200% in a month and you sell it off instead, you're a crazy person.

You know the true reason why they are not mining with them? They can't. They don't have them.

But they have already proven legit! They fullfiled the orders and delivered FPGAs!
Sure they have. Gained your trust. And will take them back. And you will pay even more. You will loose your working FPGAs and also money. Huge money.

Trade in terms: Qualifying trade in for upgrades can be either an older generation Mini Rig or 25 older generation Singles. Once your new rig is ready for delivery (currently scheduled for November), you'll be notified to ship your trade in units to us. Upon receipt we'll release your new Mini Rig SC for shipment to you.

They still could have runned before..
They could, but why would they? Establish trust. Then run away.
They could have stolen $1M.

Now they have $30M and the hardware. Many of you fell for it.

Total Orders (By last seen)        7678
   
Orders Tracked         227
Trade-In Orders         66
   
Units Sold   
   
Jalapeno SC            225
Single SC               231
Mini Rig SC               21
   
Extended TH   
   
Jalepeno SC       0.7875
Single SC             9.24
Mini Rig SC               21
   
Grand Total of   31.0275

I still trust them.
Really? What about that the CEO is a fraduster, sentenced to 3 years in prison and is currently released and violating the terms?

September 15, 2010

UNITED STATES OF AMERICA v. SONNY VLEISIDES

...
The defendant is hereby placed on supervised release, effective immediately, for a term of three years under the following terms and conditions:
...
The defendant shall not engage, as whole or partial owner, employee or otherwise, in any business involving loan programs, gambling or gaming activities, telemarketing activities, investment programs or any other business involving the solicitation of funds or cold-calls to customers without the express approval of the Probation Officer prior to engagement in such employment.

As always, I feel terribly sorry for all you guys.

thanks i wanted also to buy one of those...but i didnt like the waiting list...

[usafinders]

you could make some coin if you are right

[gennie24]

be careful

[lupinIII]

NOW SHIPPING....I CAN'T BELIEVE....FOR ME IS A EBAY SCAM...SEE HERE FOR BELIEVE.....

http://www.ebay.it/itm/1-x-60-GH-s-Bitcoin-Miner-BitForce-Single-SC-ASIC-Butterfly-Labs-Avalon-/230976319554?pt=LH_DefaultDomain_2&hash=item35c742f042&_uhb=1#ht_5381wt_1228

[reaver000]

I thought about buying one a couple of months ago but didn't trust them. Its waaaay too late now. The network will be knackered by the time I get one.

[MacTheRipper]

Give it another two weeks!

[kalon]

I don't want to sound like a push-over but at the same time I'd like to avoid sounding like the Henny Penny types in the Bitcoin scene and there are quite a few. You may be right about Butterfly Labs, though there is evidence of them rolling out the 5GH units at least.

Perhaps they are mining with them but if they just turned on all they got wouldn't that setup a possible 51% attack scenario which would become clear to everyone monitoring the network? I'm new to this whole thing so perhaps I'm wrong; hope not though since I recently pre-ordered one of the little ones. I payed via Paypal. Despite the advantage being touted for Bitcoin that there are no charge backs, I may take solace in the consumer protectionism of PayPal, knowing that I may dispute the order if there is evidence that Butterfly Labs is not acting in good faith.

There are quite a few people who clearly have a problem with ASIC, proclaiming that they will destroy Bitcoin in various ways. It seems to me, however, that ASIC will, if anything, save Bitcoin. In the long run mining will become a fruitless effort, ASICs or none. Maintaining the network on power intensive GPUs merely for the return of transaction fees is not going to be sustainable and ASIC offers a real solution to this problem if ramped up correctly.

[bobfranklin]

There's a known 35 in the wild at the moment (of the 4.5/5g units) but shipping information is currently a little more relaxed than it has been. More interaction with BFL and clients.

[PMB]

Personally, I think they just started taking orders way too early. I mean, they started having power issues this year, when they started taking orders last year. I understand that you need money to get a working prototype up and everything, but you don't need to sell thousands of products, and then not give them something for months upon months. I think they will ship their products, but by the time they do, the market will most likely have a ton of ASICs online, and it'll be a lot less profitable. They should just start selling their chip like Avalon. I mean, from what I've heard their chip/products would be more advanced, at least according to the specs they announced.

Hello,

If they needed money, why not do a kickstarter instead of accepting orders?!


regards,

P

[legendster]

I myself was VERY excited about those BFL SC things (http://www.butterflylabs.com/products/), but it sounded too good to be true. I was one step before pre-ordering the Mini Rig 'SC' for just $30k, which could deliver 1TH/s (update -> 1.5 TH/s according to the website now!). You know what? Bullshit.

Is butterfly labs mining with those ASICs at the moment? (https://bitcointalk.org/index.php?topic=110290.0)
Hell no! Do you see some huge raise in hashing power? No.
Would it be beneficial to mine on their own devices? Hell yes! More than just selling them.

If circumstantial evidence isn't enough, try simple business logic.  The price is set at $149 for a 3500MH/s chip. At current prices, they would make $149 after about 10.8 days of mining!  So why doesn't Butterfly Labs just run them for 10.8 days instead of selling them?  Then they'd have $149 and the chips lol.  I mean seriously, read those last 2 sentences again, people.  You think they're not mining with them?  I can't be the only one that realizes this.  From a business perspective, if you had an investment that would pay off 200% in a month and you sell it off instead, you're a crazy person.

You know the true reason why they are not mining with them? They can't. They don't have them.

But they have already proven legit! They fullfiled the orders and delivered FPGAs!
Sure they have. Gained your trust. And will take them back. And you will pay even more. You will loose your working FPGAs and also money. Huge money.

Trade in terms: Qualifying trade in for upgrades can be either an older generation Mini Rig or 25 older generation Singles. Once your new rig is ready for delivery (currently scheduled for November), you'll be notified to ship your trade in units to us. Upon receipt we'll release your new Mini Rig SC for shipment to you.

They still could have runned before..
They could, but why would they? Establish trust. Then run away.
They could have stolen $1M.

Now they have $30M and the hardware. Many of you fell for it.

Total Orders (By last seen)        7678
   
Orders Tracked         227
Trade-In Orders         66
   
Units Sold   
   
Jalapeno SC            225
Single SC               231
Mini Rig SC               21
   
Extended TH   
   
Jalepeno SC       0.7875
Single SC             9.24
Mini Rig SC               21
   
Grand Total of   31.0275

I still trust them.
Really? What about that the CEO is a fraduster, sentenced to 3 years in prison and is currently released and violating the terms?

September 15, 2010

UNITED STATES OF AMERICA v. SONNY VLEISIDES

...
The defendant is hereby placed on supervised release, effective immediately, for a term of three years under the following terms and conditions:
...
The defendant shall not engage, as whole or partial owner, employee or otherwise, in any business involving loan programs, gambling or gaming activities, telemarketing activities, investment programs or any other business involving the solicitation of funds or cold-calls to customers without the express approval of the Probation Officer prior to engagement in such employment.

As always, I feel terribly sorry for all you guys.

I feel terribly sorry for this poster.

[Rampion]

And you kids will be the ones crying after everyone else is mining 1TH/s.

Quoted for the lulz

[Rampion]

I have this feeling that all the idiots who scream that BFL is a scam will just disappear and make new accounts later this year. And there will be a few nuts that believe that hundreds of forum users are being paid by BFL to act like they got working ASIC's.

Quoted for the lulz (2)

[luca662]

I ordered a 60 Gh/h asic. I'm just afraid that its going to be a paper weight once I get it in about a year.

[miningusa]

Feel awful for everyone who ordered. Could have been such a money maker.

[luca662]

I regret not ordering from avalon, but hindsight is 20/20.

[Schrankwand]

I ordered a 60 Gh/h asic. I'm just afraid that its going to be a paper weight once I get it in about a year.

It would be profitable at a difficulty of over 2.5 BILLION. Which would need about 1.2 BILLION dollars to be invested in additional ASICs. So I doubt it would be a paperweight. It will not be a high speed money printer breaking even in ten days though.

[Aahzman]

It was a bit scary to submit a pre-order, glad I got in in before they raised prices. If it is a scam, I hope my wife doesn't find out 

hahahaaaa.

at the end of the day, ive never known a pre-order where they take your money first.
except if they're building you a car by hand.

i mean who's NOT going to want one of these, so what's the point in taking the money before shipping?
THATS the thing setting alarm bells off.
then when i inquire about shipping numbers...BANNN!

and address....
the shipping address given for trade-ins is an AL Huber contractors office.

(no idea if they're still doing this)
then you got the second method of upgrade from FPGA-ASIC which they promoted whereby you give them 20-500 BTC to hold onto while your FPGA`s are in the mail.
[dont even understand that one]

then under the jobs section;

We're currently seeking applicants for the following positions:
Engineer - Mandarin language skills (Must live in Asia)
Engineer - North America
Communications Director - North America
--------------------------------------------

i cant even find the company registered in WHOLE of north america.

Um, pretty much any video game you pre-order, you have to put some money down, so don't act like this is the first time in the history of commerce that a company has taken money for pre-orders.

[Aahzman]

LEGIT REPLY: My friend supposedly  Recieved his Asic today from BTL.  Hes still trying to get it setup though. apparently its pretty complex to setup.  I'll let yall know if he gets it working or not.

Who's BTL? some other asic startup?

[calecho]

yes I think it's scam