US Goverment shuts down Butterfly Labs!

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

Butterfly Labs was one of the very first mining firm is now in deep trouble as US Goverment is taking legal actions against them. Butterfly Labs was accused of fraud and misrepresentation.

FTC documents say that the companies assets were frozen. The story began with really upset customers who failed to received their pre paid miners.  Butterfly Labs has violated Section 5(a) of the FTC Act. BFL were basically engaging in “unfair or deceptive business practices in or affecting commerce”.

We have contacted butterfly Labs to get some information regarding the shut down but they said

“We are not making any comments at this time”

“Consumers have suffered and will continue to suffer substantial injury as a result of Defendant’s violations of the FTC Act. In addition, Defendants have been unjustly enriched as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants are likely to continue to injure consumers, reap unjust enrichment, and harm the public interest.”

FTC requested that Butterfly Labs be placed in receivership and its operations be suspended in order to cease all activity.

See the full court document below:

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.