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Author Topic: Butterflylabs Huge SCAM  (Read 390370 times)
Viceroy
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October 02, 2014, 02:23:46 PM
 #3041

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!



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veil|     PRIVACY     
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|   NO ICO. NO PREMINE. 
   X16RT GPU Mining. Fair distribution.   
|      The first Zerocoin-based Cryptocurrency       
   WITH ALWAYS-ON PRIVACY.   
|



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MooC Tals
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October 02, 2014, 11:53:52 PM
 #3042

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.

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October 03, 2014, 10:20:00 AM
 #3043

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!

H/w Hosting Directory & Reputation - https://bitcointalk.org/index.php?topic=622998.0
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October 03, 2014, 11:46:22 AM
 #3044

Has anymore information come out after the court hearing? As the hearing was on the 29th of September
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October 03, 2014, 03:20:43 PM
 #3045

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.



those are called drug deals   Grin

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Keyser Soze
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October 03, 2014, 06:06:22 PM
 #3046

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

http://ia902308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.54.0.pdf is the latest information.

Basically all BFL can do is ship completed miners to those who want them. They are still in receivership and all of their funds are still frozen. They have 45 days to submit a business plan to the FTC and court which must address issues raised by the FTC case. All the details can be found in the linked document.
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October 03, 2014, 07:02:30 PM
 #3047

Thank you for the response Smiley
MooC Tals
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October 03, 2014, 07:47:01 PM
 #3048

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.



I don't see the connection with higher difficulty? I think these companies need to be made an example out of, you can't just take people's money and give them a fraction of hardware, and in some cases people got no hardware. If someone stole $5,100 from your house, the police would be called and the person would be arrested. But for some unknown reason, companies like AMT Advanced miners, and BFL can just take cash from people and think they can get away with it.  The laws need to change in this area, and we need to hold these companies accountable.

With all due respect, the connection with higher difficulties come from the ability of these companies to acquire the funds to create these machines in the first place.

Lets just say that no one would trust any large scale producers of these mining equipment and they required to receive their funds by traditional means of approaching a lending company like a bank they would have to produce a plan and a time line and show results.

These bitcoin mining manufacturers make their money by using the machines before they ship them out. Thing about it would you hand over a machine that makes money simply by plugging it in? and the longer you wait the less you make?

The whole business model is flawed. imo besides people always have gotten rich by exploiting other people. 
MooC Tals
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October 03, 2014, 07:49:31 PM
 #3049

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.



those are called drug deals   Grin

Are you saying we should all go pickup the miners while carrying heat? haha No no don't do that!!!! hahah
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October 05, 2014, 03:13:14 AM
 #3050

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.



those are called drug deals   Grin

Are you saying we should all go pickup the miners while carrying heat? haha No no don't do that!!!! hahah

ha ha ha, they are not worth going to jail over.  and i definitely do not advocate violence, but if someone should make like Nolan Ryan and chuck a jalapeno at their heads i wouldn't mind =)

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Jerome?
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October 06, 2014, 11:16:35 AM
 #3051

Any update about this?

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October 09, 2014, 02:42:11 PM
 #3052

Any update about this?

No update.. I really dont know if this one is true.
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October 09, 2014, 05:34:21 PM
 #3053

Don't know if what's true, that BFL was shut down by the Federal Government?  That is definitely true, search google.



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veil|     PRIVACY     
     WITHOUT COMPROMISE.       
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|   NO ICO. NO PREMINE. 
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Xandrah
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October 09, 2014, 05:35:14 PM
 #3054

Its been long overdue, thank god they are now closed.
Rawted
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October 09, 2014, 06:27:25 PM
 #3055

Any update about this?
You must not be familiar with the US judicial system. This will take months before any facts come out, and probably years before any action is taken.
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Burn the wings off those bastards.


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October 10, 2014, 01:34:26 PM
 #3056

Any update about this?


Updates here

Now it's time for the FTC to put everything Butterfly Labs has done through the magnifying glass and then burn the wings off those bastards.
awesome31312
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October 10, 2014, 02:23:24 PM
 #3057


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

Or maybe this is just a publicity stunt. Why is the domain still out there? Why didn't the FTC seize the domain?

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October 10, 2014, 03:08:11 PM
 #3058

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.



I don't see the connection with higher difficulty? I think these companies need to be made an example out of, you can't just take people's money and give them a fraction of hardware, and in some cases people got no hardware. If someone stole $5,100 from your house, the police would be called and the person would be arrested. But for some unknown reason, companies like AMT Advanced miners, and BFL can just take cash from people and think they can get away with it.  The laws need to change in this area, and we need to hold these companies accountable.

The difficulty is so high because BFL shipped out tons of useless miners.

If they didn't take any preorders, they never would have sold a single Jalepeno because by the time they actually created one no would would buy it because it was obvious that it wouldn't ROI.

Since they got paid up front, they had enough money to make all the worthless miners, and then the rubes who paid for them received the worthless miners and then plugged them because earning a very little amount of bitcoins is much better than earning completely 0.

But plugging in the miners makes the difficulty go up, which in turn makes the miners even more worthless.

That's the funny thing, if people just stopped with the preorders/bad cloud mining purchases, the difficulty would slow down, current miners would earn a little bit more, and things may start to balance out. But, we still have geniuses preordering and buying cloud mining that will never ROI, further fucking everyone else (except the people selling miners and cloud mining of course).
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October 11, 2014, 08:53:15 PM
 #3059

i don't think that anyone knew (older asics using 65nm chips) that BFL would take a piss and force customers to wait 8 months.  the Chinese are the fast at manufacturing anything, the whole delay was complete bullshit.  now the people that ordered Monarchs, that is a different animal.  BFL was already known for lying and pushing back delivery dates.  either way BFL is an unprofessional company.   

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October 12, 2014, 09:17:35 AM
 #3060

i don't think that anyone knew (older asics using 65nm chips) that BFL would take a piss and force customers to wait 8 months.  the Chinese are the fast at manufacturing anything, the whole delay was complete bullshit.  now the people that ordered Monarchs, that is a different animal.  BFL was already known for lying and pushing back delivery dates.  either way BFL is an unprofessional company.   

Every one knew and they new well enough to argue that I would be missing out on the near future winfall of not having a bitcoin machine. The Stockholm syndrome buffoons greedily rubbed their hands dreaming of butt-coins popping out their rectum.

Don't tell me I should feel sorry for these people. They knew they were being scammed. How could they not. It was everywhere I mean everywhere.
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