Butterflylabs Huge SCAM

[ibminer]

For the sake of argument, if they got completely away with it and were allowed to resume business after the case was dismissed who would buy from them now? There is absolutely no chance that they could remain in business. Even if they get away without a fine it's very likely that they will be supervised as they refund customer money to every customer that requests a refund (which at this point is everyone except idiots that want a miner that can't ROI).

Except that we've telling the community that BFL is a scam for years and people STILL seem to buy them.  You are assuming too much about people, BLF could last years and years and years as new bitcoin miners come on board.

There are some people that just don't like forums and probably do not even use bitcointalk. They are just looking for bitcoin miners and butterflylabs pops up and has all of these cool looking products, awesome prices (if they actually delivered on time) and endless promises. Not the smartest consumers in the world, but they still don't deserve to get their money taken from them and held hostage.

Book em', Danno! 

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[Xian01]

I believe the previous post is right in cryptically stating " LOL ", I will say that BFL is on its death throws if that is their best they can do as a MOTION TO DISMISS

[MooC Tals]

I believe the previous post is right in cryptically stating " LOL ", I will say that BFL is on its death throws if that is their best they can do as a MOTION TO DISMISS

I was sitting here thinking that it would be nice to see Josh go to jail. However lets keep this in perspective. Josh has not hurt anyone physically he only defrauded the bitcoin community that spent only their extra income. Besides he obviously was just doing what the boss told him. Josh should rat out his boss and be the hero.

 It's not like he was stealing from a convent or a church. If he goes to jail then we will have to throw the bankers and politicians in Jail. They're just too big to jail.

[Xian01]

Besides he obviously was just doing what the boss told him.

WW II war criminals said the same thing.

[charleshoskinson]

Prison rape or bust

[ashe]

are these fuckers paying back people yet?

[ashe]

I believe the previous post is right in cryptically stating " LOL ", I will say that BFL is on its death throws if that is their best they can do as a MOTION TO DISMISS

https://i.imgur.com/72CZCgZ.jpg

I was sitting here thinking that it would be nice to see Josh go to jail. However lets keep this in perspective. Josh has not hurt anyone physically he only defrauded the bitcoin community that spent only their extra income. Besides he obviously was just doing what the boss told him. Josh should rat out his boss and be the hero.

 It's not like he was stealing from a convent or a church. If he goes to jail then we will have to throw the bankers and politicians in Jail. They're just too big to jail.

I wish we had a service where we hire peoples head for bitcoin, like a hitman.

and crowsd source for a legit one.

[Xian01]

http://ia802308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.109.0.pdf

PLAINTIFF’S REPLY SUGGESTIONS OF POINTS AND AUTHORITIES IN SUPPORT OF
MOTION FOR PRELIMINARY INJUNCTION AND OTHER EQUITABLE RELIEF

TL;DR: "Where it matters, Defendants still have not solved any of their problems."

EDIT: Notable excerpts

"Once Defendants manufactured Bitcoin mining machines using what were essentially interest-free loans from consumers, their first actions were not to benefit their long-suffering customers, but to pad their own bottom line."

"Given Defendants’ repeated law violations and questionable practices, Defendants cannot expect the Court simply to take their word for it that they have abandoned their illegal conduct for good."

"They should not get a fourth chance (or a fifth chance, in the case of one of the defendants) that would be funded with money that rightfully belongs to consumers"

"Mr. Zerlan admitted that Defendants mined Bitcoins with customer equipment"

"The continuance of illegal conduct obviates the need for the Commission to demonstrate a likelihood of future violations."

"Defendants’ corporate culture undermines the credibility of their claims that they will operate lawfully in the future."

"the illegal conduct here did not occur in isolation or as a result of mere oversight, but as a result of a business model designed to extract and retain money from consumers for as long as possible"

"Rather than exhibiting contrition, Defendants continued taking pre-orders despite their inability to fulfill existing orders and spent corporate funds on foam pitchforks emblazoned with the phrase, “Y U No Ship, BFL Is Late!” to mock their own customers."

"Defendant Vleisides, under the guise of corporate housing, lives in a home renovated, owned, and paid for by Butterfly Labs, and therefore consumers"

"Defendants are not providing refunds as represented, and, neither providing refunds nor mollifying customers with giveaways cures deception"

[blitzcrank]

i doubt anything will happen, but pay a fine.

[awesome31312]

Oh no, guess the multi million dollar company will have to *gulp* pay a massive fine of, $250,000 dollars

[Viceroy]

I was sitting here thinking that it would be nice to see Josh go to jail. However lets keep this in perspective. Josh has not hurt anyone physically he only defrauded the bitcoin community that spent only their extra income. Besides he obviously was just doing what the boss told him. Josh should rat out his boss and be the hero.

 It's not like he was stealing from a convent or a church. If he goes to jail then we will have to throw the bankers and politicians in Jail. They're just too big to jail.

http://en.wikipedia.org/wiki/Incarceration_in_the_United_States

[brand]

seriously how are these guys not in jail, this just proves you can get away with anything..

[QuestionAuthority]

We've seen the worst effect of bankerster's greed brought to the world -- trust in financial institutions was lost. 

We are seeing the worst effect Pirate brought upon BTC community ... trust in bitcoin businesses is being destroyed.

Being destroyed? You mean already completely destroyed. My friends laugh at me now when I bring up Bitcoin.

[Xian01]

Meta: Have "American Greed" playing on the TV in the background while working, and had an amusing thought of "I can't wait to see an episode done about Butterfly Labs..."

[drmundo]

We've seen the worst effect of bankerster's greed brought to the world -- trust in financial institutions was lost. 

We are seeing the worst effect Pirate brought upon BTC community ... trust in bitcoin businesses is being destroyed.

Being destroyed? You mean already completely destroyed. My friends laugh at me now when I bring up Bitcoin.

Same with my friends.

They asked me how that scam was going.. 

[drmundo]

Meta: Have "American Greed" playing on the TV in the background while working, and had an amusing thought of "I can't wait to see an episode done about Butterfly Labs..."

That would be a real good episode.. seriously.

It should be on american greed, the amount of money prob beats all the episodes out there.

[Searing]

We've seen the worst effect of bankerster's greed brought to the world -- trust in financial institutions was lost. 

We are seeing the worst effect Pirate brought upon BTC community ... trust in bitcoin businesses is being destroyed.

Being destroyed? You mean already completely destroyed. My friends laugh at me now when I bring up Bitcoin.

Same with my friends.

They asked me how that scam was going.. 

ditto same ... I came into bitcoin at $150 usd oct 18th 2013 knc jupiter 550gh  and thru the last year of madness

seems it is heading back to the MEAN $150 usd .....according to this chart everyone hates below (including me)




people being as silly as they are what I hope is happening is the below chart wash/rinse/repeat



it would help calm my mind if btc was irrational in TWO directions for no particular reason UP in price as well as DOWN in price


sometime likely in 2015 I will find out if I'm a chump or a champ holding on to my 52 btc

[Xian01]

http://ia802308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.110.0.pdf

ORDER
The Court is aware of the growing lack of civility and professionalism among the parties
in this case and, therefore, puts the parties on notice of several options available to it if such
conduct continues. Through its inherent power to maintain respect and decorum, the Court is
granted the flexibility to equitably tailor a sanction that appropriately fits any misconduct. See
Plaintiffs’ Baycol Steering Comm. v. Bayer Corp., 419 F.3d 794, 802 (8th Cir. 2005)
(recognizing inherent power to sanction after notice and opportunity to be heard). Available
sanctions include a lecture from the Court, a monetary penalty, a recommendation by the Court
to the appropriate bar association that the attorney be subject to disciplinary action, or a public
reprimand directly by the Court and made available on the Court’s website.1
 See, e.g., Local Rule 83.6 (discussing attorney discipline). More extreme sanctions include disbarment or
contempt findings.

The Court recognizes that this is a contentious and vigorously disputed lawsuit. But the
Court expects the parties to treat each other, the Temporary Receiver (which is appointed by, and
serves as, an officer of the Court), and the Court with professionalism and respect. Name
calling, veiled suggestions, ad hominem attacks, and unfounded accusations directed at opposing
counsel, the Temporary Receiver, or the Court will not be tolerated and potentially subjects a
party to the above sanctions.

The parties, the Temporary Receiver, and the Court have a lot of work to accomplish in a
little amount of time. The Court will not allow harassing and unbecoming conduct to distract
from the orderly administration of this lawsuit. If it continues to observe inappropriate behavior,
the Court will not hesitate to schedule a show cause hearing to address the offending conduct.

IT IS SO ORDERED

Also, request for the lawyers to get paid is being opposed.

PLAINTIFF’S SUGGESTIONS IN OPPOSITION TO APPLICATION OF
KENNYHERTZ PERRY FOR ATTORNEY’S FEES
http://ia802308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.111.0.pdf

PLAINTIFF’S SUGGESTIONS IN OPPOSITION TO APPLICATION OF POLSINELLI
PC FOR ATTORNEY’S FEES
http://ia802308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.112.0.pdf

Here, Defendants admit to at least $4 million in refunds requested but not yet paid.1
Should the FTC prevail, the amount of refunds could exceed that amount by an order of
magnitude, $50 million.2 Yet, frozen funds amount to only approximately $10.1 million3 –
barely 20% of the potential refund liability. Of that amount, up to approximately $1.1 million
has already been earmarked to pay interim operating costs.4 Allowing additional releases of
frozen funds to pay attorney’s fees only reduces the already modest refunds that Defendants’
consumer victims could expect to receive. Equity demands that these scarce funds be used for
the victimized consumers, not lawyers.

[scarsbergholden]

http://ia802308.us.archive.org/32/items/gov.uscourts.mowd.117531/gov.uscourts.mowd.117531.110.0.pdf

ORDER
The Court is aware of the growing lack of civility and professionalism among the parties
in this case and, therefore, puts the parties on notice of several options available to it if such
conduct continues. Through its inherent power to maintain respect and decorum, the Court is
granted the flexibility to equitably tailor a sanction that appropriately fits any misconduct. See
Plaintiffs’ Baycol Steering Comm. v. Bayer Corp., 419 F.3d 794, 802 (8th Cir. 2005)
(recognizing inherent power to sanction after notice and opportunity to be heard). Available
sanctions include a lecture from the Court, a monetary penalty, a recommendation by the Court
to the appropriate bar association that the attorney be subject to disciplinary action, or a public
reprimand directly by the Court and made available on the Court’s website.1
 See, e.g., Local Rule 83.6 (discussing attorney discipline). More extreme sanctions include disbarment or
contempt findings.

The Court recognizes that this is a contentious and vigorously disputed lawsuit. But the
Court expects the parties to treat each other, the Temporary Receiver (which is appointed by, and
serves as, an officer of the Court), and the Court with professionalism and respect. Name
calling, veiled suggestions, ad hominem attacks, and unfounded accusations directed at opposing
counsel, the Temporary Receiver, or the Court will not be tolerated and potentially subjects a
party to the above sanctions.

I am not surprised that BFL is engaging in this kind of behavior against the FTC. They have always acted horribly unprofessional towards their customers, and I see no reason why this would stop for the people who are forcing BFL to stop scamming

[sickhouse]

Yeah it is true insanity. And some people are still not realizing this, do you research first people..