25 Feb '16, 5pm

Bitcoin Mining Company Butterfly Labs Settles Case With Federal Trade Commission for $38.6M

Bitcoin Mining Company Butterfly Labs Settles Case With Federal Trade Commission for $38.6M

This article is by Rebecca Campbell. Butterfly Labs has agreed to settle the Federal Trade Commission’s charges of making misleading claims about their products to their customers. In a lawsuit that has dragged on since September 2014, the Kansas-based Bitcoin company presold computer hardware that was optimized for mining Bitcoin, charging as much as $30,000 for the specialized hardware. According to the U.S. trade watchdog FTC, Butterfly Labs was taking orders for Bitcoin mining machines, but very few machines were actually shipped, as Butterfly Labs was building and using the hardware to mine bitcoin for itself. In the few cases that the machines were shipped to customers, they had already been used by the company beforehand, generating valuable bitcoin for Butterfly Labs instead of the customer who had already paid for the hardware. The charges filed against Butterfly ...

Full article: http://thebitcoinpro.com/bitcoin-mining-company-butterfly...

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Bitcoin startup Butterfly Labs settles with FTC for $38.6M, but it can't pay - Ars Technica

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