Topic: [2014-04-24] Butterfly Labs loses wings in court over more Bitcoin fraud (Read 1011 times)

The question whether Butterfly Labs is a wholly fraudulent outfit remains unanswered, and the case continues.

But, but....Their game show is giving away BTC!
// Joking

Dragging them into court is a necessary evil, however the primary result will (probably) be income for lawyers and the court system.

I really hope that the courts decide to shut down their operations for ever. They have conned thousands of Bitcoiners, have defrauded their customers of tens of millions of $$$, and have even tried to destroy this forum. 

If the court/lawyer and punitive fine costs take away the customer refund money, then it really didn't work out properly.
At least it cannot possibly be as bad as that little, old company in Japan.

It'll be nice to make them answer for their actions in a public forum.
Lack of ethics is a massive problem in business.
Should their actions be found to have crossed a legal line, the punitive verdict may put Butterfly out of business. Hopefully, not before they return the money to those they allegedly defrauded.

FYI: The full article is here @arstechnica.com:
Digging for answers: The “strong smell” of fraud from one Bitcoin miner maker

...
For now, though, one company sits above all others when it comes to cultivating a new level of direct customer mistrust in the Bitcoin community: Butterfly Labs.

For the past year, the Kansas-based Bitcoin miner maker has been embroiled in numerous accusations of fraud. Customer orders, totaling millions of dollars, were significantly delayed or never fulfilled. Through it all, the company insisted that mere manufacturing delays were to blame. However, suspicion never died down. In fact, it's getting worse after it came to light that Butterfly Labs' largest shareholder—a man who is a company co-founder, current "Innovation Officer," and member of the board of directors—pled guilty in 2010 to one count of mail fraud (PDF) for his involvement in an international, multi-million dollar lottery scam.

Now, the company's critics have fresh ammunition because of this same executive. A federal judge in Kansas has ruled that the man in question, Sonny Vleisides, violated the terms of his probation in the lottery scam case. As a result, Vleisides’ probation—previously slated to end in September 2013—will now continue for another two years. This ruling is Butterfly Labs' least concern. In light of new details from the recently published transcript of that January 2014 probation hearing, the legitimacy of the Butterfly Labs operation could soon be decided once and for all....
http://arstechnica.com/tech-policy/2014/04/digging-for-answers-the-strong-smell-of-fraud-from-one-bitcoin-miner-maker

Happy dance?
Finally BFL is in court....nice.

If I find a quarter, I will buy a clue.  
http://www.youtube.com/watch?feature=player_detailpage&v=UlWrmIqGs3Y#t=155

They were taking bribes to ship the 65nm out the backdoor ahead of their customers in early-mid 2013

Can't ask for anything more. They deserved every bit of it.


This is what they have been doing for more than a year now. Cheating their customers by conducting mining with the pre-ordered rigs.

http://cointelegraph.com/post/butterfly_labs_loses_wings_in_court_over_more_bitcoin_fraud#.U1kj-vl_tqU