Butterflylabs Huge SCAM

[MooC Tals]

It's official - http://www.coindesk.com/ftc-butterfly-labs-held-back-shipments-illicit-mining/

Im glad they deserved it, im shock that people in the first were willing to wait over 3 months for preorders in the first place.

Society will go through the 3 stages of truth. We're now approaching the truth as being self-evident.



 The idiot is now going to jail, I wonder if he'll be an asshole in there?  Yes that was a pun

[NewLiberty]

The thing about the block chain being public?
If there is evidence against them, it will be visible.
If not, they will deservedly go free. 
It oughtn't be guesswork either way.

[MooC Tals]

The thing about the block chain being public?
If there is evidence against them, it will be visible.
If not, they will deservedly go free. 
It oughtn't be guesswork either way.

True, However they have testimony or someone that worked there told the feds he/she asked the company why are they not doing the burnins on the test network. They also mentioned a burnin would take all but 30 min todo when they had them going for over 2 days.

If they start throwing jail as a threat I'm sure the workers will start talking to save their ass.

I believe it was over a year ago someone had done exactly what you mentioned and pointed a great deal of new crunching power coming from Kansas on redit but as usual no one can say for sure as there was a pool owned by Josh called eclipse in the same area and dismissed it as the pool doing.

Funny how that works eh?

Scammers need to be shutdown.

[Zeta0S]

I can still remenber they(BFL) were selling there 500GH/s units on eBay in July 2013 when customers were waiting for there units for ever.

[noviapriani]

They ebay sellers sold it not only for profit but to make money from them as well, kinda makes you think the ebay seller knew that the BFL were gonna take longer with the preorders or more like forever.

[QuestionAuthority]

They ebay sellers sold it not only for profit but to make money from them as well, kinda makes you think the ebay seller knew that the BFL were gonna take longer with the preorders or more like forever.

Most of the eBay seller accounts were BFL sock puppet accounts. They we're selling their equipment through eBay for a markup over their own ridiculous price. Didn't anyone else figure that out? I had an argument with an eBay BFL seller here long ago and reported his sale to ebay then told him in the thread that I did it. Ebay pulled his ad and closed his account. Josh got in the thread and started ragging me out hardcore. What does that tell you?

[freedomno1]

They ebay sellers sold it not only for profit but to make money from them as well, kinda makes you think the ebay seller knew that the BFL were gonna take longer with the preorders or more like forever.

Most of the eBay seller accounts were BFL sock puppet accounts. They we're selling their equipment through eBay for a markup over their own ridiculous price. Didn't anyone else figure that out? I had an argument with an eBay BFL seller here long ago and reported his sale to ebay then told him in the thread that I did it. Ebay pulled his ad and closed his account. Josh got in the thread and started ragging me out hardcore. What does that tell you?

Talk about a deep rabbit hole well it's not that I did not suspect most of the BFL units on ebays to be part of the scam but a lot of work to pull all this bull on people. Either way this lawsuit is well deserved and kamuffins are a coming

[Zeta0S]

They ebay sellers sold it not only for profit but to make money from them as well, kinda makes you think the ebay seller knew that the BFL were gonna take longer with the preorders or more like forever.

I mean BFL was selling this units on eBay

[eoakland]

BFL as a whole were complete scum.  sadly enough in this country, if you have $ you can buy yourself a slap on the wrist.  BFL made a ton of $, so i seriously doubt there will be more than heavy fines and probation.  the government has all the ammo they need.  misappropriation/embezzlement of company/customer's funds, internal communication threads where they conspire to commit fraud and mislead customers.  they clearly kept customers hardware and used it to mine, there was a huge conflict of interest in doing so. in essence they raised difficulty and competed against their own customers/depreciating customer's hardware by using it to mine.  these blood sucking leeches kept all HW until it was basically rendered useless and not profitable. 

i really hope there is justice, and these soft ass BFL faggots get enough time that they will be sent to a level 4 yard.  better figure out what race car you plan to ride  in Nasser G. 

BFL employees can suck a dick

[Rawted]

BFL as a whole were complete scum.  sadly enough in this country, if you have $ you can buy yourself a slap on the wrist.  BFL made a ton of $, so i seriously doubt there will be more than heavy fines and probation.  the government has all the ammo they need.  misappropriation/embezzlement of company/customer's funds, internal communication threads where they conspire to commit fraud and mislead customers.  they clearly kept customers hardware and used it to mine, there was a huge conflict of interest in doing so. in essence they raised difficulty and competed against their own customers/depreciating customer's hardware by using it to mine.  these blood sucking leeches kept all HW until it was basically rendered useless and not profitable. 

i really hope there is justice, and these soft ass BFL faggots get enough time that they will be sent to a level 4 yard.  better figure out what race car you plan to ride  in Nasser G. 

BFL employees can suck a dick

The most outspoken and rude employee (by all appearances) they had was Josh Zerlan (posts as Inaba here). The sad part is, reading the deposition notes, he was the ONLY one who tried to stop Nasser G's actions. He told Nasser in several of the conversations that they couldn't/wouldn't/shouldn't do certain unethical/illegal things. He was the only one behind the scenes that was actually looking out for BFL's customers (according to the chat logs released), yet he is easily the most hated here because of his antics. Kind of makes me wonder how BFL would have done with ANYONE ELSE at the helm, and also makes me feel sort of guilty for being so anti-Inaba after seeing how he truly conducts himself in business.

[MooC Tals]

BFL as a whole were complete scum.  sadly enough in this country, if you have $ you can buy yourself a slap on the wrist.  BFL made a ton of $, so i seriously doubt there will be more than heavy fines and probation.  the government has all the ammo they need.  misappropriation/embezzlement of company/customer's funds, internal communication threads where they conspire to commit fraud and mislead customers.  they clearly kept customers hardware and used it to mine, there was a huge conflict of interest in doing so. in essence they raised difficulty and competed against their own customers/depreciating customer's hardware by using it to mine.  these blood sucking leeches kept all HW until it was basically rendered useless and not profitable. 

i really hope there is justice, and these soft ass BFL faggots get enough time that they will be sent to a level 4 yard.  better figure out what race car you plan to ride  in Nasser G. 

BFL employees can suck a dick

The most outspoken and rude employee (by all appearances) they had was Josh Zerlan (posts as Inaba here). The sad part is, reading the deposition notes, he was the ONLY one who tried to stop Nasser G's actions. He told Nasser in several of the conversations that they couldn't/wouldn't/shouldn't do certain unethical/illegal things. He was the only one behind the scenes that was actually looking out for BFL's customers (according to the chat logs released), yet he is easily the most hated here because of his antics. Kind of makes me wonder how BFL would have done with ANYONE ELSE at the helm, and also makes me feel sort of guilty for being so anti-Inaba after seeing how he truly conducts himself in business.

I used to work for a boss that would tell me to RE-USE the oil in transmission services. I quit that job. Josh did nothing to stop what happened and as a matter of fact his 'secret sauce' as he put it was designed to pull more attention to the company to make more money.

He knew they were hashing with product ready to ship and he also knew that his timeline was bullshit. Remember 1 year late is no longer an act of incompetence not any way I'll believe that.

Liars and cheats go hand and hand.

[Rawted]

You're right, I am being too soft about this. I think I was just in shock that there was some level of humanity involved there.

[Zeta0S]

Do they have a "burn in room" 

[MooC Tals]

You're right, I am being too soft about this. I think I was just in shock that there was some level of humanity involved there.

What ever he is doing now in court is trying to save his ass from jail or something along that line. the court is trying to come to some conclusion here. I believe the court wants this company destroyed but at the same time they want the refunds sent back or product shipped.

Josh/company/lawyer is playing the "we can't send refunds back because you closed our access to the funds" I personally would close the company down sell all the assets and distribute the funds accordingly. Then throw the 1'st 2nd and 3rd in command in jail the rest can go free if they start talking.

Then tell them they're lucky they're not in China.

[eoakland]

It's official - http://www.coindesk.com/ftc-butterfly-labs-held-back-shipments-illicit-mining/

Im glad they deserved it, im shock that people in the first were willing to wait over 3 months for preorders in the first place.

Society will go through the 3 stages of truth. We're now approaching the truth as being self-evident.



 The idiot is now going to jail, I wonder if he'll be an asshole in there?  Yes that was a pun

i guarantee you not one of these BFL faggots would talk greasy to anyone in jail if they had to do time...let's see how far those smart ass remarks get them when they are in custody.

[eoakland]

BFL as a whole were complete scum.  sadly enough in this country, if you have $ you can buy yourself a slap on the wrist.  BFL made a ton of $, so i seriously doubt there will be more than heavy fines and probation.  the government has all the ammo they need.  misappropriation/embezzlement of company/customer's funds, internal communication threads where they conspire to commit fraud and mislead customers.  they clearly kept customers hardware and used it to mine, there was a huge conflict of interest in doing so. in essence they raised difficulty and competed against their own customers/depreciating customer's hardware by using it to mine.  these blood sucking leeches kept all HW until it was basically rendered useless and not profitable. 

i really hope there is justice, and these soft ass BFL faggots get enough time that they will be sent to a level 4 yard.  better figure out what race car you plan to ride  in Nasser G. 

BFL employees can suck a dick

The most outspoken and rude employee (by all appearances) they had was Josh Zerlan (posts as Inaba here). The sad part is, reading the deposition notes, he was the ONLY one who tried to stop Nasser G's actions. He told Nasser in several of the conversations that they couldn't/wouldn't/shouldn't do certain unethical/illegal things. He was the only one behind the scenes that was actually looking out for BFL's customers (according to the chat logs released), yet he is easily the most hated here because of his antics. Kind of makes me wonder how BFL would have done with ANYONE ELSE at the helm, and also makes me feel sort of guilty for being so anti-Inaba after seeing how he truly conducts himself in business.

Josh/Inaba is a grown ass man, he knew what BFL was doing and knew it was wrong...he should have quit.  he knowingly knew BFL was fucking over customers and still had the balls to login to the forum and rag on customers who were upset over their mistreatment. 

[Viceroy]

Then tell them they're lucky they're not in China.

Why?  We lock up way more of our peers than the smart Chinese.  Remind him that he's in America!

[MooC Tals]

In 2013 I bought Bitcoin mining companies from 2 companies.

First, I bought 2 cards from BFL, one full price and one at 50% off. I waited a year, they gave me nothing. Finally they gave me a refund for the first card, and I had to post a lot of negative reviews to get the refund for the second card I got for 50% off (for them being late one the first card). It probably would have been impossible for anyone to get back the money on the discounted card, but I am good with posting online and they didn't want the bad publicity. They wired me for both cards and I was refunded a year later after being on the 45 day waiting list for I don't know how long....

The second place I bought Bitmining equipment was " AMT miners " AKA advanced miners ( www.amtminers.com ) , they did even worse, collected thousands from people and refused to give anyone refunds. They send miners with no power supplies with cut wires and used fans to people on the "naughty list". They charged me $6,000, but they only send me a miner a year later that sold for $899 on their own website! They used our money to expand their business instead of being fair or giving partial refunds. See this post for info....

https://bitcointalk.org/index.php?topic=807750.0

Long ago before the internet people would say things like "Do you have the merchandise on you?" and the other person would say "Yea, Do you have the money?"

If everyone did this these companies would not exist and the difficulty would never be this high.

[RoadStress]

Cross posting(thx ElGrandJefe):

In a nutshell:

• No more pre-orders
• No more lies about performance or delivery dates
• No advertising or selling anything they don't actually have in stock
• Full asset freeze for BFL and Jody, Nasser and Sonny (JNS)
• Repatriation of assets held abroad by BFL and JNS
• Full accounting of all BFL assets and records
• Full authorization to subpoena any person or business entity holding BFL and JNS assets and records
• Full, sworn list of all payments and transfers of funds, assets and property of BFL and JNS
• Complete, sworn statement itemizing all payments, transfers, and assignment of funds over $2,500 made since June 2012 by each of JNS
• Authorization for FTC to obtain credit reports on JNS
• Full preservation of records by BFL and all its officers and agents (no more forum post deletions)
• Authority of temporary receiver to send anyone at BFL home, including, but not limited to JNS
• JNS may work for the receiver if so asked, but will no be paid
• No burn-in testing without approval of the court
• Shipping of completed miners is allowed, if consumers want them instead of a refund
• No refunds unless approved by the court
• No new sales unless approved by the court
• All BFL and JNS bitcoins go to a wallet controlled by the receiver (as noted in a previous post)

There's a whole lot more in there that's unfavorable to BFL, but essentially the receiver temporarily has control over everything, Jody, Nasser and Sonny get nothing and have to provide a full accounting of what they have taken in the past. Everyone has to cooperate fully with the receiver or their ass is grass. The FTC is authorized, and indeed has been granted extended powers, to continue gathering evidence. Further criminal investigations and civil suits against BFL and JNS can continue.

And last but not least, the judge says "this case is mine, bitches".

All the customers should file complaints to FTC and don't forget to give them details about scammer Josh Zerlan aka Inaba! Let's get him into a nice prison cell!

[Xandrah]

Has anymore information come out after the court hearing? As the hearing was on the 29th of September