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Author Topic: [2014-09-23] Feds say Butterfly Labs ran “systematic deception”  (Read 1941 times)
LiteCoinGuy
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September 23, 2014, 03:06:26 PM
 #1

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

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/

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CoinMode
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September 23, 2014, 03:12:30 PM
 #2

I would be buying guns too if thousands of people were angry with me.  Grin
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September 23, 2014, 03:35:24 PM
 #3

Here's another link with additional information.

http://www.ftc.gov/enforcement/cases-proceedings/1423058/bf-labs-inc
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September 23, 2014, 04:20:26 PM
 #4

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

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September 23, 2014, 04:54:01 PM
 #5

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

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btbrae
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September 23, 2014, 04:59:58 PM
 #6

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

so I won't. But you know.
LiteCoinGuy
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September 23, 2014, 05:17:37 PM
 #7

jail time


smoothie
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September 23, 2014, 06:49:29 PM
 #8

Finally!  Grin Grin Grin

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LiteCoinGuy
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September 23, 2014, 08:01:16 PM
 #9


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September 23, 2014, 09:30:24 PM
 #10

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.
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September 23, 2014, 10:32:24 PM
 #11

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.
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September 24, 2014, 12:28:20 AM
 #12

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.
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September 24, 2014, 01:48:39 AM
 #13

I think they have a promising future:

Escape From Jail Plans. Order now. Only 5 packs of cigarettes each. Escape in two weeks.  Cheesy
LiteCoinGuy
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September 24, 2014, 02:23:33 PM
 #14

Official FTC Complaint Against Butterfly Labs Obtained

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

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September 24, 2014, 02:58:14 PM
 #15

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



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Swordsoffreedom
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September 24, 2014, 11:44:20 PM
 #16

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.
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September 25, 2014, 12:15:22 AM
 #17

Some of this hardware may become collector's items.
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September 25, 2014, 03:25:08 AM
 #18

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
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September 25, 2014, 10:56:20 AM
 #19

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

LiteCoinGuy
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September 25, 2014, 11:00:26 AM
 #20

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

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