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

[Searing]

Here are the news i received by email

http://www.spencerfane.com//SnapshotFiles/fe6ec39c-1858-4244-8390-6b06950c2839/Subscriber.snapshot?clid=dd7f0e88-f2b4-4c82-91fd-07403facf79b&cid=e610c6a3-35d6-4e50-85e1-ffffd2d55145&ce=N%2f5mUKyduycDBpX19gxMSwdgnpW4zqhr


Thank you for your inquiry regarding BF Labs, Inc. d/b/a Butterfly Labs (“Butterfly Labs”). You have previously contacted this receivership and the purpose of this email is to provide you an update with respect to the same.

A preliminary injunction hearing was held on November 24-25, 2014. On December 12, 2014, the Court entered an order denying the FTC’s motion for preliminary injunction, asset freeze, appointment of receiver, and other equitable relief.

On December 23, 2014, the Court entered its order related to procedures for the wind down of the temporary receivership (“Wind Down Procedures Order”). Pursuant to the Wind Down Procedures Order, Butterfly Labs’ management has full control and authority over its business operations.

All inquiries related to operations, products, refunds, and shipping, should be directed to Butterfly Labs. For further information, you may visit the Butterfly Lab’s website at www.butterflylabs.com or email Office@butterflylabs.com.
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What will happen now?

Sounds like nothing happened to them because the FTC is a powerless piece of crap agency. You should have directed your complaint to Safeway or Walgreens. You would have seen more effective action taken against BFL.

I would gather this only applies to stuff not shipped out.. I would assume that BFL has already shifted most to the cloud hashing or shipped monarchs and none of this applies to those who already got late miners in 65mm or whatever

in other words looks like BFL wins? (or am I missing something)

It to me looks like BFL will wind down as a company ..declare bankruptcy and being a corporation the principal investors will be protected and walk

let me know if i'm missing something but this all looks a lot like the bank crisis of 2007 when no one went to jail

but then again....I'm still waiting for the IRS to wade in (crosses fingers)

[QuestionAuthority]

Here are the news i received by email

http://www.spencerfane.com//SnapshotFiles/fe6ec39c-1858-4244-8390-6b06950c2839/Subscriber.snapshot?clid=dd7f0e88-f2b4-4c82-91fd-07403facf79b&cid=e610c6a3-35d6-4e50-85e1-ffffd2d55145&ce=N%2f5mUKyduycDBpX19gxMSwdgnpW4zqhr


Thank you for your inquiry regarding BF Labs, Inc. d/b/a Butterfly Labs (“Butterfly Labs”). You have previously contacted this receivership and the purpose of this email is to provide you an update with respect to the same.

A preliminary injunction hearing was held on November 24-25, 2014. On December 12, 2014, the Court entered an order denying the FTC’s motion for preliminary injunction, asset freeze, appointment of receiver, and other equitable relief.

On December 23, 2014, the Court entered its order related to procedures for the wind down of the temporary receivership (“Wind Down Procedures Order”). Pursuant to the Wind Down Procedures Order, Butterfly Labs’ management has full control and authority over its business operations.

All inquiries related to operations, products, refunds, and shipping, should be directed to Butterfly Labs. For further information, you may visit the Butterfly Lab’s website at www.butterflylabs.com or email Office@butterflylabs.com.
------------

What will happen now?

Sounds like nothing happened to them because the FTC is a powerless piece of crap agency. You should have directed your complaint to Safeway or Walgreens. You would have seen more effective action taken against BFL.

I would gather this only applies to stuff not shipped out.. I would assume that BFL has already shifted most to the cloud hashing or shipped monarchs and none of this applies to those who already got late miners in 65mm or whatever

in other words looks like BFL wins? (or am I missing something)

It to me looks like BFL will wind down as a company ..declare bankruptcy and being a corporation the principal investors will be protected and walk

let me know if i'm missing something but this all looks a lot like the bank crisis of 2007 when no one went to jail

but then again....I'm still waiting for the IRS to wade in (crosses fingers)

They spent a lot of customer preorder money on legal fees so it's not like nothing happened. I started warning people about preorder scams almost the day BFL opened and they didn't listen. The only preorder in history that has ended up not being a scam is preorder books and Barnes & Noble managed to scam that one too. Gmaxwell and I warned people (not just here but on IRC too) not to give any money to pirate because it was a scam. It didn't help because, I guess, people can't learn lessons from history. When they started complaining to the FTC I also told them that would have limited success because of the nature of FTC investigations. The FTC supports business and helps them recover from mistakes. They're not in the business of crippling Amercian industry.

At this point the money given to BFL is lost. There is no government "white knight" that's going to ride in and give everyone back their lost money (hell, it's been spent on attorneys now so there's nothing to give back). All you can do is go for revenge. If someone can discover a crime committed that comes under the jurisdiction of a punitive agency then you can get revenge. The IRS can be punitive but they're really just about money. As long as they get their cut they will leave you alone. That cut of the cash can come at any time too, even after the fact, as long as you pay penalties and interest. You need to catch them breaking a law that gun toting cops can arrest them for and put them in jail.

BTW: Don't bother with the FCC either because those aren't gun toting cops. All they do is deliver fines which will give even more of the preorder money to the government.

[Syke]

in other words looks like BFL wins? (or am I missing something)

It to me looks like BFL will wind down as a company ..declare bankruptcy and being a corporation the principal investors will be protected and walk

The FTC was not able to completely shutdown BFL. Other than that, the FTC has already won 4 major victories:

1. Shutdown BFL for long enough that other companies have far superior products available for immediate purchase.
2. BFL cannot take pre-orders ever again.
3. BFL must provide prompt refunds to anyone who asks.
4. FTC's lawsuit against BFL will continue.

BFL's product is uncompetitive. They have no way to fund new products. BFL is finished. Celebrate!

[bitcoinvest]

In my case i had 2 orders. I paid 120 BTC and 109.
I canceled my order and gave me back 27 btc( i ask to get my full refund because i paid with btc and told me in Skype that's not going to happen.... when i informed him that terms and conditions are not refering to that told me i'm sorry we are going to write it....) and the other arrived 1 year later and as you can understand was useless....

what do you think i should do???

[jh7phone]

I emailed office@butterflylabs.com requesting my FULL BTC refund today, for them to keep 5/6 of my coins is criminal. We'll see how that goes.

[QuestionAuthority]

I emailed office@butterflylabs.com requesting my FULL BTC refund today, for them to keep 5/6 of my coins is criminal. We'll see how that goes.

Here's what will happen if too many people ask for refunds at once.

Chapter 7 – Chapter 7 is a bankruptcy option for debtors that do not have the means to restructure their obligations and continue in business.  In Chapter 7, a trustee is appointed, available assets are sold, and creditors are paid to the extent funds are available.  Partnerships, limited liability companies, and corporations are all eligible to file bankruptcy under Chapter 7.  Depending on their income, individuals who own and operate small businesses as sole proprietorships also may file bankruptcy under Chapter 7.

Chapter 13 – Chapter 13 can be a restructuring option for small businesses owned and operated by individuals (that is, sole proprietorships).  Only individuals may file Chapter 13, so it is not an option for businesses operated through partnerships, limited liability companies, or corporations.  Chapter 13 eligibility is also subject to debt limits.  Currently, an individual cannot file Chapter 13 if he or she owes more than $383,175 in unsecured debt or $1,149,525 in secured debt.

Chapter 11 – The other bankruptcy option for small businesses is Chapter 11.  Chapter 11 is the bankruptcy option for a small business seeking to restructure and continue in operation if it is owned by a partnership, limited liability company, or corporation.  Chapter 11 is also the only bankruptcy option for individual business debtors who want to reorganize but owe too much money to meet Chapter 13’s eligibility requirements.

[ElGrandJefe]

I emailed office@butterflylabs.com requesting my FULL BTC refund today, for them to keep 5/6 of my coins is criminal. We'll see how that goes.

I'm afraid that's not going to fly. They refunded you the BTC equivalent of your order in USD, at current exchange rates, as they are required to do.

It's the same as if you paid with any other foreign currency.

[bitcoinvest]

they took our bitcoins mine for themselves and after the units were useless they send to us....

they have to shut down and every person that is involved there has to be monitored if he tries to open a new firm etc.....

[jh7phone]

I really wouldn't get tired of punching josh's stupid ugly face

[QuestionAuthority]

they took our bitcoins mine for themselves and after the units were useless they send to us....

they have to shut down and every person that is involved there has to be monitored if he tries to open a new firm etc.....

Yep, that's the jist of it. They amassed personal wealth at the expense of others and the American legal system protects them. Ain't America grand? I don't see any difference between this business and HSBC. They're just another collection of assholes manipulating a corrupt and broken legal system.

[bitcoinvest]

MtGox.com and Butterflylabs.com are two cases we have to leave behind in the bitcoin community but must take back our BTC in order to do that and of course this goes more on case 1.....

[jayce]

So are the victims getting anything out of this? I feel like the raid is great, but should of done long time ago.. back in 2013.

[jinxx]

I emailed office@butterflylabs.com requesting my FULL BTC refund today, for them to keep 5/6 of my coins is criminal. We'll see how that goes.

i dont think you`ll get your full btc refund, just because the way you paid in btc.

but hopefully these guys will finally come to an end after this raid.

[karthus]

finally some progress on this BFL scandal. A raid is something, better then nothing.. here.

Now whats with the status on the court process with FTC.

[kassadin]

MtGox.com and Butterflylabs.com are two cases we have to leave behind in the bitcoin community but must take back our BTC in order to do that and of course this goes more on case 1.....

Yeah, but because of that we got like new comers like GAWminers who doing a similar setup.

And now its like all these cloud service sites popping like with free stupid giveaways.

[bitcoinvest]

and in case of MtGox we have news! 1st of the year for a major Japanese newspaper that claims of 99% Missing Mt Gox Bitcoins Likely an Inside Job, Say Japanese Police.....
more news will come on 3rd of Janunary...in 2 days....

let's see what will happen... it seems to me that M.K. will have to give everything back within weeks if is the brain of this job....
and his masterplan has failed to take our btc and run away..

[kennenman]

I still dont get why the owner of mt.gox isnt behind bars or serving time.. is japans law really that different?

As for the BFL situation, they really need to fine Josh already and take everything they havent.

[sudexx]

I still dont get why the owner of mt.gox isnt behind bars or serving time.. is japans law really that different?

As for the BFL situation, they really need to fine Josh already and take everything they havent.

Why isn't Josh behind bars too?

[Furio]

I still dont get why the owner of mt.gox isnt behind bars or serving time.. is japans law really that different?

As for the BFL situation, they really need to fine Josh already and take everything they havent.

Why isn't Josh behind bars too?

It seems that their laywers are really good, slimy folks.... So I will be surprised if he does time, maybe a big fine as maximum, you must remember, he IS white and only disadvantaged a small portion of people in America, so my guess is he will walk...

[jh7phone]

I emailed office@butterflylabs.com requesting my FULL BTC refund today, for them to keep 5/6 of my coins is criminal. We'll see how that goes.

I got my email reply from office@butterflylabs.com it only took them "Two weeks" to tell me they are keeping 5/6 of my bitcoins.

Bye Bye 79.5BTC & oh ya... fuck you BFL! I really hope to meet Josh one day so I can thank him for the fraud.