OpEd: In Butterfly Labs Case, FTC Shows Little Regard For Bitcoiners February 29, 2016 By Ian Demartino Last month, news came out [via CoinDesk and ArsTechnica ] that the FTC had settled its case against Butterfly Labs and co-founder Sonny Vleisides for a largely symbolic combined fine of $19,000 ($4,000 for Vleisides and $15,000 for the Butterfly Labs itself). Yesterday in an another twist of the SEC versus Butterfly Labs the Judge Brian C. Wimes granted a motion of to allow the sales of Butterfly Labs bitcoins to begin building up cash levels for potential customer refunds. The Temporary Receiver Eric L. Johnson made a sealed request (not available to the public) on October 29th to the judge requesting the ability to begin liquidating the Butterfly ... Butterfly Labs has a refund policy for customers who are fed up waiting but, nevertheless, the bitcoin forums are buzzing with irritated buyers. The ASIC business had started promisingly for ... Butterfly Labs has resumed shipping of their Monarch hardware for those customers still interested. Considering how out dated the 700 GH/s device is, with 2nd generation products from their competitors delivering almost 10 times the hash rate, it is doubtful that many customers will be interested in receiving hardware that’s unlikely to even cover the electricity costs needed to power it. Bitcoin mining and fraud are an unfortunate reality we must face as an industry. From things like Bitconnect to Butterfly labs to even Onecoin, there are a lot of scams and fraud floating around. These schemes leave people high and dry with lost money and no product or service rendered. They play off of people’s greed and irrational ... Butterfly Labs customers have submitted nearly 300 complaints to the US government, a new report finds.
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