[NEWS] Butterfly Labs - Shut Down by US Government

[Gleb Gamow]

I'm surprised that the hash rate on EMC hasn't dropped at all.

You don't expect to have their farm in their offices and registered under the same company name right? But I hope someone will tip FTC about EMC!

Enter HashTrade, not to mention NimbusMining, Netsolus, LiquidBits and Coinware.


Sonny Vleisides' personal site, and not BFL's: https://web.archive.org/web/20130625050854/http://sonofodi.weebly.com/

According to https://www.blocktrail.com/address/1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ, Sonny Vleisides' bitcoin wallet address - 1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ - used to garner sales for bitcoin miner chips didn't pay any mining fees as shown below:



Yet, with one of my old wallets I doled out 0.0035 BTC for the privilege of sending a lot less fewer bitcoins...



The following is all four transactions for the 1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ address used by Sonny Vleisides for the supposed sale of bitcoin mining ASIC chips - https://blockchain.info/address/1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ




All the bitcoins that flowed to 1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ (BFL's or Sonny Vleisides' personal account) went to 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs shown above, including the scant amount - 0.01001691 BTC - from 17HSPT3bhYE1rhrwAhi8k6GCGGXRdQimY7 and the 59.9273 BTC from 1DiPE4TnBczmPVoy53tffrd1iNPq87B3PB, the latter seen here: https://blockchain.info/tx/827063279c43c50c3f4c690dbf491071386d80068115f48d0beee7e80b4c7f2f.

Revisiting the 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs bitcoin wallet address, the following image depicts 0 BTC tx fees paid when HashTrade supposedly paid BFL via BitPay that infamous million-dollar down payment for their multi-million dollar order of Monarchs as the press release reveals here: http://www.prweb.com/releases/2013/10/prweb11283333.htm.

BF Labs, Inc. Processes $1 Million Bitcoin Merchant Transaction for Institutional Bitcoin Mining Hardware Purchase

Butterfly Labs Announces $1 Million Down-Payment on Multi-Million Dollar Order for Next Generation Bitcoin Mining Hardware. Deposit will help enable production of innovative 28nm Monarch card.

<the following image gleaned from https://blockchain.info/tx/1b6ea350c094071412df1f801651263fd65ffa0b89ad6c8626ceeca8755f50bc>



According to the press release, the $1M USD that HashTrade supposedly paid BFL stemming from 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs was paid to BitPay's wallet address 16fus1FKurpDmPtEZLGbg7vRYtH2TEFbYf.

ONLY 16 hours later, that same $1M USD equaling 5,562.354 BTC had 437.646 BTC added to it, and a new wallet - 1EXDF4fvjRozJ96TjF4SPN7rbTx2ik6Dsd - was created to store 6,000 BTC that has been untouched to this very day, as seen here: https://blockchain.info/tx/ff0fb375a2375b2b9ee7e8daa5759085d8fe8cd85280a97b1dfbb14005f36153, and further illustrated with...



Again, nary a tx fee was paid to the miners, proof with the following:



Note the confirmation time: Only ~11 minutes to get the tx confirmed with nary a fee. I say that's an impossibility for HashTrade to transfer a million dollars worth of BTC to BFL via BitPay if they do indeed maintain the 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs bitcoin wallet address, of which I'm 100% confident they DO NOT!

BFL/Sonny Vleisides owns the 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs bitcoin wallet address, as well as the 1EXDF4fvjRozJ96TjF4SPN7rbTx2ik6Dsd BWA, for all the bitcoins that make up the 437.646 BTC to round the wallet up to 6,000 BTC also stemmed from BFL.

BitPay may very well control the 16fus1FKurpDmPtEZLGbg7vRYtH2TEFbYf BWA used to funnel the infamous $1M USD from supposedly HashTrade to BFL, but, again, I contend that said funds were redirected back to BFL's control via parameters they set on their BitPay account.

The only thing that puzzles me now is how if BitPay was used as the payment service provider for the $1M USD transaction, why were no tx fees accrued?

To recap...

Sonny Vleisides owned the 1Hq2t6dJcxqZjGda919p4c4tmopNRLciAJ BWA.

Thousands of transactions from BFL ended up going to 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs.

1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs was claimed to be owned by HashTrade to pay the $1M USD down payment for BFL Monarchs.

The $1M USD payment from 1QAHVyRzkmD4j1pU5W89htZ3c6D6E7iWDs plus other transactions stemming from BFL totally 6,000 BTC went to the 1EXDF4fvjRozJ96TjF4SPN7rbTx2ik6Dsd BWA after one hop, supposedly BitPay's BWA 16fus1FKurpDmPtEZLGbg7vRYtH2TEFbYf.

http://www.hashtrade.com/about.html

CoinWare and HashTrade have received substantial venture capital investment from the Jacobson Brothers, in order to help establish these emerging businesses, ensure that they have a strong foundation and secure all the capital equipment necessary to deliver the data processing services that the different business models require.

The Jacobson brothers own the Canadian Bitcoin Embassy and the Miami Bitcoin Embassy, both entities that the Bitcoin Development Fund donated 25 BTC to, of which they, too, have yet to liquidate as seen here: https://blockchain.info/address/1LAT5Zzf12cZqDy86ee2mcWhNZpk9DLf1D. Furthermore, I can easily show other BFL moneys flowing to this very address, not to mention from pools closely aligned with BFL.

All that said, which Bitcoin-themed periodical is going to be the first to publish this revelation? And, why haven't nary a one uncovered any of this before?

~Bruno Kucinskas

[Collider]

I wonder if Sonny is still on probation re his previous mail fraud conviction...

Yes, he is, it was prolongued for 2 years early this year  

I guess he should practice on not dropping the soap again.

[Gleb Gamow]

https://storify.com/fermunation/askftc

[Biffa]

Bruno you don't have to pay the extra transaction fees, when sending bitcoins from one wallet to another, they just make it happen faster if you do. So if you are not in a hurry then there is no need.

[monsters4r]

Finally !! 

Bye bye Josh !

[xstr8guy]

I wonder if Sonny is still on probation re his previous mail fraud conviction...

Yes, he is, it was prolongued for 2 years early this year  

I guess he should practice on not dropping the soap again.

Am I the only person who doesn't think prison rape is funny?   

I wouldn't wish rape on my worst enemies.

[Gleb Gamow]

Bruno you don't have to pay the extra transaction fees, when sending bitcoins from one wallet to another, they just make it happen faster if you do. So if you are not in a hurry then there is no need.

That makes sense. So, if HashTrade would've opted to pay tx fees, their infamous $1M USD payment to BFL via BitPay would have been included in the blockchain quicker than 5 minutes and not needing as many confirmations? FWIW, 16 hours later, the same amount, plus some, took a whole 11 minutes to be included in the blockchain with probably as many confirmations, probably because it was for more money - ~$1.1M USD at the time.

Glad we cleared this up.  

Ergo, the only thing that makes sense, like you've kindly eluded to, is that BFL represented HashTrade and paid the money to themselves via Bitpay via a BWA they own, then transferred the now larger sum to yet another BWA that they - BFL - also control.

The IQA.... BWA DOES NOT belong to HashTrade or BitPay, but to BFL. I can easily link the 18u... BWA to Josh, of which funded ~31% of the 1QA... BWA.

[Gleb Gamow]

I wonder if Sonny is still on probation re his previous mail fraud conviction...

Yes, he is, it was prolongued for 2 years early this year  

I guess he should practice on not dropping the soap again.

Am I the only person who doesn't think prison rape is funny?  

I wouldn't wish rape on my worst enemies.

How do you feel about fuckin' little old ladies outta millions with a lottery scheme?

http://www.hrw.org/reports/2001/prison/voices.html

I've been sentenced for a D.U.I. offense. My 3rd one. When I first came to prison, I had no idea what to expect. Certainly none of this. I'm a tall white male, who unfortunately has a small amount of feminine characteristics. And very shy. These characteristics have got me raped so many times I have no more feelings physically. I have been raped by up to 5 black men and two white men at a time. I've had knifes at my head and throat. I had fought and been beat so hard that I didn't ever think I'd see straight again. One time when I refused to enter a cell, I was brutally attacked by staff and taken to segragation though I had only wanted to prevent the same and worse by not locking up with my cell mate. There is no supervision after lockdown. I was given a conduct report. I explained to the hearing officer what the issue was. He told me that off the record, He suggests I find a man I would/could willingly have sex with to prevent these things from happening. I've requested protective custody only to be denied. It is not available here. He also said there was no where to run to, and it would be best for me to accept things . . . . I probably have AIDS now. I have great difficulty raising food to my mouth from shaking after nightmares or thinking to hard on all this. . . . I've laid down without physical fight to be sodomized. To prevent so much damage in struggles, ripping and tearing. Though in not fighting, it caused my heart and spirit to be raped as well. Something I don't know if I'll ever forgive myself for.
— A.H., Indiana, 8/30/96

This makes two, so you're not alone, bud.

[Unacceptable]

I wonder if Sonny is still on probation re his previous mail fraud conviction...

Yes, he is, it was prolongued for 2 years early this year  

I guess he should practice on not dropping the soap again.

Am I the only person who doesn't think prison rape is funny?  

I wouldn't wish rape on my worst enemies.

Must be,cause I WOULD!!!!!!!!!!!  

My you get raped by VERY large men,many times a day Josh & Sonny  

R.I.P.=Rape In Prison  

BTW,DON'T DO THE CRIME,YOU WON'T HAVE TO DO THE TIME (or get raped) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Simple..................  

[philipma1957]

first off prison rape is not that common.  Second Josh and Sonny will be in white collar prisons if they get sentenced. So rape is even less common.

Third If indeed they are proven guilty and end up in prison I hope they get long sentences .

[Bogart]

Am I the only person who doesn't think prison rape is funny?   

No, you are not.


I really doubt that prison will change these guys' behavior.  When they get out they'll go right back to ripping ppl off.  The only benefit will be that they can't run their game for as long as they're locked up.

Instead we'll be paying their living expenses through our tax bills, while making the private prison industry richer.  

[johnny5]

I'm surprised that the hash rate on EMC hasn't dropped at all.

I'm not.  If they are on there they are running small potatoes. I'm #4 there and running only 8TH. Biggest miner on EMC is 33 TH with #2 @ 20TH.

Why are you still mining on EMC?  I would be worried that it will shut down at any moment and any account balances will be locked up.

or the fact that Josh had something to do with it = AVOID LIKE THE PLAGUE.

[ocminer]

If someone deserves it - then Inaba/Josh..

I just remember that Video from the Fair (CES?) where he was a dickhead and gave a quarter to a forum user for "not talking" with him..
This was the day this dude raised ALL the red flags ... (and for BFL too..)

[QuestionAuthority]

I wonder if Sonny is still on probation re his previous mail fraud conviction...

Yes, he is, it was prolongued for 2 years early this year  

I guess he should practice on not dropping the soap again.

Am I the only person who doesn't think prison rape is funny?   

I wouldn't wish rape on my worst enemies.

You're right, rape isn't funny it's painful. Maybe prison rape is the wrong thing to wish on them.

I hope their fellow inmates treat them with the same love and respect that they have used on this community of people. That should guarantee they get fucked, beaten down and berated every day.

[Gleb Gamow]

first off prison rape is not that common.  Second Josh and Sonny will be in white collar prisons if they get sentenced. So rape is even less common.

Third If indeed they are proven guilty and end up in prison I hope they get long sentences .

Funny how the prison/rape posts AREN'T considered off-topic. Why? Because those who got raped by BFL have been in prison awaiting what they ordered. Worse, all their prison sentences just got extended infinitely because of the FTC's action.

Ergo, thousands of individuals when through, or going through, and some maybe continue to go through various degrees of mental anguish due to being raped by BFL, yet, sadly, at least one dude doesn't think prison rape is funny for the leading principals of BFL. I concur! I think it's fuckin' hilarious! BRING OUT THE GIMP (from cell H).

[tonto]

So is there a class action lawsuit yet?  'cause I want in on that shit.

[giorgiotheclown]

first off prison rape is not that common.  Second Josh and Sonny will be in white collar prisons if they get sentenced. So rape is even less common.

Third If indeed they are proven guilty and end up in prison I hope they get long sentences .

Funny how the prison/rape posts AREN'T considered off-topic. Why? Because those who got raped by BFL have been in prison awaiting what they ordered. Worse, all their prison sentences just got extended infinitely because of the FTC's action.

Ergo, thousands of individuals when through, or going through, and some maybe continue to go through various degrees of mental anguish due to being raped by BFL, yet, sadly, at least one dude doesn't think prison rape is funny for the leading principals of BFL. I concur! I think it's fuckin' hilarious! BRING OUT THE GIMP (from cell H).

https://www.youtube.com/watch?v=eG4W0LbIvW0

squeal josh squeal, funny clip josh zerlan jackson county corrections

[Searing]

So is there a class action lawsuit yet?  'cause I want in on that shit.

I'd think that is now toast in that the trial date was tenatively set from what I remember for middle of jan 2016

just a guess but this will be wrapped up in a bow by then in my view

as for Josh nothing will happen to Josh he will just say he was misled and touting the company line as his job

[Bicknellski]

So is there a class action lawsuit yet?  'cause I want in on that shit.

I'd think that is now toast in that the trial date was tenatively set from what I remember for middle of jan 2016

just a guess but this will be wrapped up in a bow by then in my view

as for Josh nothing will happen to Josh he will just say he was misled and touting the company line as his job

Following orders? Really that is his defense is it Searing. LOL! He was involved in the decision making and knew full well what was going on day to day. He can't feign ignorance.

There is plenty of evidence just in these forums to use against him if tries that ploy. His only option is to lawyer up and rat out Sonny V and the others at the top. Pretty sure that is where this will end up. Ideally he doesn't do that and tries to ride out the BTC and IRS and Criminal prosecution coming his way and goes down with BFL to the bitter end.

[Searing]

So is there a class action lawsuit yet?  'cause I want in on that shit.

I'd think that is now toast in that the trial date was tenatively set from what I remember for middle of jan 2016

just a guess but this will be wrapped up in a bow by then in my view

as for Josh nothing will happen to Josh he will just say he was misled and touting the company line as his job

Following orders? Really that is his defense is it Searing. LOL! He was involved in the decision making and knew full well what was going on day to day. He can't fain ignorance.

There is plenty of evidence just in these forums to use against him if tries that ploy. His only option is to lawyer up and rat out Sonny V and the others at the top. Pretty sure that is where this will end up. Ideally he doesn't do that and tries to ride out the BTC and IRS and Criminal prosecution coming his way and goes down with BFL to the bitter end.

I don't disagree but we are talking Josh Z. here ..he will sing like a canary to the feds for immunity...and he is as slippery as jello..imho he may just walk..

now as to the IRS sniffing around now with all this Bitcoin money moving around mysteriously

....well you could have a point there.....but one case at a time....heh

countries off hand that I think? have no extradition (we could start a 'where' josh gonna go thread" start a btc pool time/date


north korea
syria
russia (they can send him back like with snowden prob not .due to being p/o'd at usa now)
burma
venezulea




well that is who comes to mind now off hand (i think the above are correct)

feel free to add others