Butterfly Labs (BFL) raided today by U.S. Marshalls 9/19/14

[Gleb Gamow]

Finally, BFL's forum is getting up to speed: https://forums.butterflylabs.com/bfl-forum-and-miscellaneous/8832-rumor-raid.html

Here's what I predict:

BFL, were you raided?

It wasn't a raid. We invited the FTC, US Marshals and the FBI to tour our plant to prove to them that we truly are the most trustworthy Bitcoin entity in the world. Later, we treated them to lunch, had a few laughs at the expense of them monumental assholes over at BCT, then they went on their merry way.

That's the good news. Now, the bad news. Due to shortage of parts...

[QuestionAuthority]

Quote from: Inaba on August 16, 2014, 12:16:12 AM
what the fuck is with you? ... I knew you were incapable of not lying ... Go fuck with your barn wood ... stop posting blatantly false information (What specifically is blatantly false ? We're going to need details and clarification if he's calling you a liar like that, Bruno -C) ... Why can you not just keep your mouth shut on occasion? ...
I'm not trying to be a dick about it...
but do you have a mental illness ...
Did your father or mother not give you enough attention ...  Are you just a drama queen at heart ... but the sad part about it is, I'm sure you'll lie about that as well

Quote from: Xian01 on August 16, 2014, 04:30:32 AM
You are a habitual liar ... You post fake information, lies and bullshit constantly ... You did not strike a nerve at all (... then why is he evidently so bent-out-of-shape ? -C) ... posting my personal information (But it's ok when you do it, right Josh ? -C) ... no matter how I try to accommodate your disabilities ...  You are a sad, pathetic human being ... I don't want to know the answer you'd give me... it would be either self delusional or false anyway

Comedy Gold - LOL

Josh is such a raging dickhead.

[QuestionAuthority]

Just one more to highlight what a swell person Josh is:

Quote from: Josh on July 10, 2012, 07:20:58 PM
Fuck you, you little cumstain. I hope you die in a fire.

[Gleb Gamow]

Quote from: Inaba on August 16, 2014, 12:16:12 AM
what the fuck is with you? ... I knew you were incapable of not lying ... Go fuck with your barn wood ... stop posting blatantly false information (What specifically is blatantly false ? We're going to need details and clarification if he's calling you a liar like that, Bruno -C) ... Why can you not just keep your mouth shut on occasion? ...
I'm not trying to be a dick about it...
but do you have a mental illness ...
Did your father or mother not give you enough attention ...  Are you just a drama queen at heart ... but the sad part about it is, I'm sure you'll lie about that as well

Quote from: Xian01 on August 16, 2014, 04:30:32 AM
You are a habitual liar ... You post fake information, lies and bullshit constantly ... You did not strike a nerve at all (... then why is he evidently so bent-out-of-shape ? -C) ... posting my personal information (But it's ok when you do it, right Josh ? -C) ... no matter how I try to accommodate your disabilities ...  You are a sad, pathetic human being ... I don't want to know the answer you'd give me... it would be either self delusional or false anyway

Comedy Gold - LOL

Josh is such a raging dickhead.

First time posted, but this is what Josh sent me on the 16th (the other day).

So you never did answer me as to why you can't stick to posting facts.  Why do you continually resort to lying over and over in your posts about me and BFL?  That's a serious question.  Why are you incapable of posting facts... I ask this in the vein of you claiming not to be a drama queen.  If you were really in it for the people and were trying to perform a service, you'd stick to facts and truth.  But you post lies and false information in almost every post.  How is that not being a drama queen?

[Gleb Gamow]

Finally, BFL's forum is getting up to speed: https://forums.butterflylabs.com/bfl-forum-and-miscellaneous/8832-rumor-raid.html

Here's what I predict:

BFL, were you raided?

It wasn't a raid. We invited the FTC, US Marshals and the FBI to tour our plant to prove to them that we truly are the most trustworthy Bitcoin entity in the world. Later, we treated them to lunch, had a few laughs at the expense of them monumental assholes over at BCT, then they went on their merry way.

That's the good news. Now, the bad news. Due to shortage of parts...

Looks like BFL took 'er down:

[opieum2]

Josh Zerlan used up that one phone call from prison on calling his forum mod to delete the thread lol.

[Gleb Gamow]

Josh Zerlan used up that one phone call from prison on calling his forum mod to delete the thread lol.

The general consensus is that Josh wasn't one of those forced inside to only see out. But, it's a safe assumption his name and the company he represents, Butterfly Labs (BFL), is trashed from this day forward.

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

[Searing]

Josh Zerlan used up that one phone call from prison on calling his forum mod to delete the thread lol.

The general consensus is that Josh wasn't one of those forced inside to only see out. But, it's a safe assumption his name and the company he represents, Butterfly Labs (BFL), is trashed from this day forward.

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

hey it may not have been the marshals or feds etc

It could simply be BFL is being served for debts/obligations etc...if that is the case ...imho that was the plan by BFL execs from the get go..have BFL the corp take the fall
on liability and losses as all the hardware etc was bought/moved to EMC and personal use..that is why you incorporate so the corporation takes the fall

I will be so pissed if BFL the corp takes the fall on this and the execs walk as was done by bankers in the banking crisis....personal wealth is untouched..the corp
takes the hit

crap just scared myself ...damn scammers may still be playing the system

[2112]

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

Theoretically speaking BFL could be forced through Chapter 7, and that would mean retaining some (or even most) employees through the initial liquidation stage.

[dogie]

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

Theoretically speaking BFL could be forced through Chapter 7, and that would mean retaining some (or even most) employees through the initial liquidation stage.

Are you suggesting they're insolvent? How or why would that happen if they're sitting on boatloads of cash.

[Searing]

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

Theoretically speaking BFL could be forced through Chapter 7, and that would mean retaining some (or even most) employees through the initial liquidation stage.

Are you suggesting they're insolvent? How or why would that happen if they're sitting on boatloads of cash.

if they were smart they have a 'loan' on an invoice from every piece of equip that went to EMC pool and personal stuff to BFL owners

alas BFL is bankrupt and they are just one of the creditors...ie the made BFL a shell corp moved the cash out...declare BFL kaput

keep personal assets EMC etc

viola!

leave BFL the corporation holding the bag on bankruptcy protect all their personal assets and EMC pool

anyway just speculating that it could have been a bankruptcy shut down rather then a criminal one

but then again WTF do I know I ordered from BFL .did get a refund thru more luck then skill....

[Gleb Gamow]

I honestly can't envision a scenario where the doors are opened come Monday and everybody's working like today didn't happen. It's also probably a safe bet that some suppliers have yet to be paid, and won't want to ship more parts to an entity currently enjoying the wrong kind of limelight.

Theoretically speaking BFL could be forced through Chapter 7, and that would mean retaining some (or even most) employees through the initial liquidation stage.

Wrong play book! I say BFL will take the route that Laissez Faire City did and have Johann Gevers as the liquidator so that others that come after us, say ten years down the road, can come back here and quote this thread, wondering why nary a Monarch purchaser was never reimbursed from the "raid" forward, just like those Sonny Vleisides fleeced during his LFC reign have yet to see one cent of their investments, and I'm not talking about his lottery scheme, for those old farts will die waiting for whatever.

Besides, foregoing Chapter 7 worked out so well for HashFast, why should BFL pursue it when other great courses of actions are abound?

Looks like Josh's former EMC is about to take a hit as well, with miners exiting that wonderful pool.

http://www.offshorealert.com/forums.aspx?g=posts&t=37064

Posted: Friday, August 12, 2011 11:27 PM   
Posted: 10/29/2003 1:40:42 AM

By: No BOG has it wrong, again.

A direct cut and paste from the Laissez Faire City Founders Association-this page-http://www.lfcfa.com/founders/index.html
note the date!

11 March 2003

After the release of the provisional audit report, the Board of Oversight Governors (BOG) of the Laissez Faire City International Trust (LFCIT) on 20 December 2002 voted unanimously to terminate the incumbent Trustee, Mikhail Larguine, and the incumbent Receiver, Lic Jose Gerardo Pacheco Guerrero.

On 21 January 2003 the BOG voted unanimously to appoint Gray Wing as the Trustee for the remainder of the Liquidation, and Johann Gevers as the Liquidator of the LFCIT.

The contact email addresses for all matters pertaining to the LFCIT and its dissolution, including the distribution of DMT shares, are now as follows:

graywing@thirdhost.com Gray Wing, Trustee, LFCIT

audit@hush.com Johann Gevers, Liquidator, LFCIT

The PGP keys for these addresses are at the PGP Keys link. The receiver@hush.com address is no longer active.

In the process of dissolution of the LFCIT, the following matters remain:

1. The sale or abandonment of Mailvault

An announcement regarding the future of Mailvault will be posted on this site in the next few days. Parties interested in bidding for Mailvault should contact the Liquidator and Trustee immediately.

2. The completion of the ATM audit

The programmer responsible for the ATM audit will be completing his work very soon.

3. The reconciliation of the results of the ATM audit with those of the LFCIT audit

After the ATM and LFCIT audit results are reconciled, the final financial statements and audit report for the LFCIT will be authorized by the BOG and posted on this site.

4. The distribution of DMT shares

The LFCIT will liquidate its debts by paying its creditors from its holding of DMT shares. The final liquidation and distribution accounts of the LFCIT will be posted on this website.

The remaining balance of DMT shares will be distributed to Founders and warrant holders.

NOTE: Functionality will be added to this website to allow Founders to add, change, and manage their contact email addresses, and to inspect the balances (securities and currency) we have on record for them. This will allow you to update your email addresses yourself, and to notify us of any errors in your balances, so we can correct them ahead of the distribution of DMT shares.

If you are aware of Founders who have not been in touch with the Auditor during the past twelve months, please refer them to this website IMMEDIATELY, or their DMT shares will be apportioned among those for whom we have contact details (current email addresses). If you are reading this, you do NOT need to email me again. Just keep checking this website. Everything you need will be available on this website soon, including full details of how to claim your DMT shares.

Johann Gevers

If this is what the Laissez Faire City "insiders" consider soon,
gawdhelpus, what would later look like?

Not once did JG mention Sonny Vleisides' full name during the liquidation process, opting to always referring to him as the son of Jame Ray Houston, Sonny's real dad.

And, if you think that's funny, LFC had it's own Satoshi Nakamoto at the time: http://web.archive.org/web/20000301124449/http://zolatimes.com/V3.44/dmt1.html

Hell, they even their own version of Atlas.



Yes, LFC was entirely built by Sonny Vleisides and his real dad, James Ray Houston, a.k.a. The Silver King (look it up). LFC came complete with its own internet money and uber-private email.

[BBmmBB]

https://bitcointalk.org/index.php?topic=781703.msg8864685#msg8864685

 

y'all copy cats? ^  lmao

[2112]

Are you suggesting they're insolvent? How or why would that happen if they're sitting on boatloads of cash.

No, I'm not suggesting that they are insolvent. I however think that they aren't competitive and don't have much value as a going concern that will continue to release products for many years into the future. In particular I don't think that BFL can be sold to a 3rd party or subject to a management buyout.

If not Ch.7 then trusteeship followed by a regular liquidation. If they really sit on a boatload of cash then that surplus may forfeited or used to compensate past customers.

In any case I don't think all employees will be immediately laid-off and the premises cleaned by hazardous waste disposal contractors.

[Gleb Gamow]

Are you suggesting they're insolvent? How or why would that happen if they're sitting on boatloads of cash.

No, I'm not suggesting that they are insolvent. I however think that they aren't competitive and don't have much value as a going concern that will continue to release products for many years into the future. In particular I don't think that BFL can be sold to a 3rd party or subject to a management buyout.

If not Ch.7 then trusteeship followed by a regular liquidation. If they really sit on a boatload of cash then that surplus may forfeited or used to compensate past customers.

In any case I don't think all employees will be immediately laid-off and the premises cleaned by hazardous waste disposal contractors.

Care to take another stab at it if the following is true?

http://www.reddit.com/r/Bitcoin/comments/2gvnhm/butterfly_labs_bfl_raided_by_us_marshals_today/cknd72z

I can absolutely conform this to be true as my roommate works at butterfly labs in Kansas city. They were raided today. My roommate was told the government now owns the company. All work computers were confiscated and employees were interviewed before being sent home and told to wait for a phone call for further questions from the feds.

[CoinHoarder]

Even if BFL is insolvent, and even if the government goes after them personally, it is highly likely that they snuck mining rigs out the back door and setup personal mining farms. Assuming they didn't convert the mined Bitcoins to FIAT any time soon, it would be near impossible to trace, no?

[vipgelsi]

True or false? Im confused. 

[Gleb Gamow]

Even if BFL is insolvent, and even if the government goes after them personally, it is highly likely that they snuck mining rigs out the back door and setup personal mining farms. Assuming they didn't convert the mined Bitcoins to FIAT any time soon, it would be near impossible to trace, no?

True that! It's not like BFL could've set up some other facility to produce miners using parts paid for from their investomers, then either sell or mine with said miners unbeknownst to anybody. For that to have happened, he would've had parts sent to a completely different location then BFL's current facility.

e.g.

http://www.importgenius.com/importers/bf-labs-inc

BILL OF LADING NO.
BNXCLAX12111953

ARRIVAL DATE
2013-01-02

VOYAGE NO.
0023E

VESSEL NAME
COSCO JAPAN

SHIPPER

SHENZHEN PENGCHU INDUSTRIAL CO.,LTD
OFFICE 17D,NORTH
OF HUBEI BUILDING,
NO 9003,BINHE
ROAD, FUTIAN
DISTRICT,
SHENZHEN,CHINA

CONSIGNEE

BF LABS INC
9817 WALNUT ST.
KANSAS CITY, MISSOURI 64114 USA

NOTIFY PARTY

BF LABS INC
9817 WALNUT ST.
KANSAS CITY, MISSOURI 64114 USA

Okay, so China shipped to the wrong address. It's not like Sonny Vleisides lives there or anything.

http://radaris.com/~Sonny-Vleisides/292519188

9817 Walnut, Kansas City, MO 64114
(816) 941-0299     (816) 941-4408

Okay, okay, so obviously there's at least two Sonny Vleisides in the world, for surely this one wouldn't had received highly needed parts at the time at his residence, when shipping them to BFL's normal facility would have sufficed.

Ergo, since you offered up no proof, there probably was no second facility, nor did BFL sneak out miners through the back door, thus the government has made a grave error in busting BFL's balls.

I can't wait to suck Josh's dick to show him how sorry I am for ever doubting him... and lying.

[xstr8guy]

I doubt very much that BFL is insolvent. I just received my bonus Monarch on Wednesday (shipped Monday). And I also received a BTC refund on Monday for the balance of my original order.

Hardly sounds like they aren't at least trying to ship and/or refund which you would expect if they were going out of business.

[Searing]

I doubt very much that BFL is insolvent. I just received my bonus Monarch on Wednesday (shipped Monday). And I also received a BTC refund on Monday for the balance of my original order.

Hardly sounds like they aren't at least trying to ship and/or refund which you would expect if they were going out of business.

I'm just saying if they played the books correctly...any losses would be BFL losses...any xfer of equip or assets to EMC miner pool could be listed as
xfered but *unpaid* ..mine with them a bit ...give them back to BFL ....games could be played if they have legit reciepts for miners sold on the
inside....well if the paid for the miners even if they jumped the que as employees or investors by 6 months to a year...they could do that

then when it all goes to sh*t....BFL the corporation for bad loans or selling equip at cost to insiders/investors/employees way way before us
could claim they were independent

also all that pre-order money they are giving back ..my suspicion is a lot of it was used on the nimbus mining pool etc....they had a year
to hash with this pre-order money in various cloud mining operations...again if they bled it off the main company BFL....and they did it
correctly and BFL goes under (bankrupt) and takes the fall...all personal assets and other corp assets like EMC and hashing etc outside
of BFL would get washed....it would look slippery as hell...but with BFL they could claim a long track record of being 'stupid' rather then
criminal etc

ie like the bankers in the banking crisis...only 1 guy went to jail..and that is because he felt guilty....even thou all the actions of the bank
for a period of years ONLY  helped the individuals running it...not the bank that was insolvent

now truthfully I don't think the folks at BFL are this smart nor would their ego allow failure etc....BUT they could have pulled
(or tried) to pull something off like this..moving assets around on the claim of bad business decisions etc

just gives me the hebbie jebbies to think that such a plot ...(hey were stupid not crooks!) the line that our monarch product was SOOOOO
cutting edge ...oops we failed....and BFL takes the fall as a corporation on all the bad derisions (for the corp) ....but all the good results
go to EMC Pool ...the pre-order money mining for say 1 year on Nimbus and personal miners for themselves mining as they stalled for a
year with our pre-order money

if I was an Evil Genius..that is how I woulda played it internally for the last year with all that nice slushy.....pre-order cash and no refunds
and all the access to equip ahead of everyone else..either by purchase (with receipt to show bona fides later) or more risky as a 'testing purposes
loan"

anyway like I said they are likely just Evil and not Evil Genius's but hey ......just saying......In that even more of a puzzle then the above is
HOW the mangaged to not ship ANY product less then 9 months late since at least nov/dec 2012!

so in reflection of how long they have been doing this...the above fiction I just wrote on BFL Corp looks a little more real/scary imho

again I'm likely wrong just gives me the hebiee jeebies thinking about such a possible end game ...where the lose the battle over BFL
going bankrupt but win the war personally

again just hopefully telling nightmare stories here