[2014-09-23] Feds say Butterfly Labs ran “systematic deception”

[LiteCoinGuy]

Feds say Bitcoin miner maker Butterfly Labs ran “systematic deception”
or : The Bitcoin-Company is insolvent  

The Federal Trade Commission has filed a civil lawsuit against Butterfly Labs (BFL), an embattled Kansas-based Bitcoin miner manufacturer. The FTC alleges that the company engaged in fraudulent and deceptive practices.

...

There is substantial evidence that corporate funds are being diverted for seemingly personal use: department stores, day care services, massages, and home improvement (such as architectural services and saunas). Defendants’ corporate credit cards also reflects numerous non-business expenses, including department stores (including Nordstroms, Bed Bath and Beyond, Restoration Hardware, and Hobby Lobby), auto maintenance, gun stores and hunting stores.

http://arstechnica.com/tech-policy/2014/09/feds-label-bitcoin-miner-maker-butterfly-labs-as-systematic-deception/

[1714166458]

1714166458

[CoinMode]

I would be buying guns too if thousands of people were angry with me. 

[Keyser Soze]

Here's another link with additional information.

http://www.ftc.gov/enforcement/cases-proceedings/1423058/bf-labs-inc

[Mowcore]

http://www.coindesk.com/us-government-shuts-embattled-mining-firm-butterfly-labs/

[nwfella]

Finally they shutdown this scandalous group of yellow-bellied con artists!

[btbrae]

Well, I hate to be the one to say it...

so I won't. But you know.

[LiteCoinGuy]

jail time

[smoothie]

Finally! 

[LiteCoinGuy]

[medicine]

Better late than never.  I was so close to pre ordering a miner from them a couple of years ago.  I mean a 5Ghz miner thar keeps your coffee cup warm. Ingenious.   Thank goodness I chose not to get involved in that nightmare.
No sympathy from me.

[aigeezer]

No sympathy from this first-month BFL ASIC customer either. The product, when it finally arrived, was good while it lasted but by then it was much too little, much too late. The customer relations were a disaster throughout.

Caveat emptor, life goes on.

The government circus that will ensue just adds to the overall waste, imho. Lose, lose, lose.

[mercistheman]

Well, I hate to be the one to say it...

so I won't. But you know.

Credit where due brother... you called it first.

[101111]

I think they have a promising future:

Escape From Jail Plans. Order now. Only 5 packs of cigarettes each. Escape in two weeks. 

[LiteCoinGuy]

Official FTC Complaint Against Butterfly Labs Obtained

http://coinfire.cf/2014/09/23/official-ftc-complaint-butterfly-labs-obtained/

[Viceroy]

Bitcoin mining hardware firm Butterfly Labs shuttered by FTC
http://www.zdnet.com/bitcoin-mining-hardware-firm-butterfly-labs-shuttered-by-ftc-7000033997/

[Swordsoffreedom]

About time glad I never bought with them
Although when BFL keeps its promise of two weeks _TM
It would not matter they lost more coins than a miner would be worth lol.

[linkwarz]

Some of this hardware may become collector's items.

[Swordsoffreedom]

Some of this hardware may become collector's items.

Sad thing is that even if it became a very rare collector item
The people who paid huge amounts of Bitcoins for their Monarch will not ROI lol.

[LiteCoinGuy]

Video: https://www.youtube.com/watch?v=OeuCHhm1rVg

[LiteCoinGuy]

Audio: http://media.mwcradio.com/podcasts/newsmaker-interviews/376/newsmaker-interviews-376_1.mp3