According to the latest documents filed in US District Court, FTC lawyers allege that not only did Butterfly Labs engage in deceptive business practices and use pre-sold machines to mine bitcoins, employees went so far as to order custom foam pitchforks to mock their frustrated customers. Helen Wong, an FTC attorney wrote to the court:
"Further demonstrating Defendants’ disregard for their customers, they used corporate funds to make and mass order red foam pitchforks mocking their own customers, emblazoned with the words, “BFL is late! Y U NO SHIP!”
Last week, a federal judge shut down Butterfly Labs, a Missouri-based firm that manufactures specialized computers for mining bitcoins, alleging fraud and criminal wrongdoing within the company.
Today, the judge extended the restraining order until Friday to give both sides time to agree on a plan for reopening the notorious bitcoin business. He also appointed U.S. Magistrate John Maughmer to mediate the discussions, which are ongoing.
Bitcoin is a new currency that was released in 2009 by a person (or group) using the alias Satoshi Nakamoto. Transactions are decentralized and require no middle man. More and more merchants are beginning to accept the currency as it gains traction with the mainstream.
Nakamoto vanished into thin air in early 2010 with over 1 million bitcoins he mined while controlling the majority of the bitcoin network's hashpower.
Full Story: http://altcoinpress.com/2014/09/butterfly-labs-ordered-foam-pitchforks-to-mock-customers/
