Butterfly Labs sued by FTC for "systematic deception"

E

evilsofa

[H]F Junkie
Joined
Jan 1, 2007
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"The FTC alleges that one corporate defendant and three individual defendants have taken in over $50 million by operating a scheme that required consumers to pre-pay for machines that would allow consumers to ‘mine’ for Bitcoins, a new virtual currency," the complaint states. "Defendants either never delivered these machines or delivered them so late that they became obsolete."

http://arstechnica.com/tech-policy/...maker-butterfly-labs-as-systematic-deception/
 
Forbes article:
http://www.forbes.com/sites/kashmirhill/2014/09/23/ftc-butterfly-labs-paypal/

"The FTC alleges that Butterfly Labs collected between $20 million and $50 million from customers, charging thousands of dollars for computing equipment that either never arrived or was useless by the time it did. Meanwhile, according to FTC attorney Helen Wong, the company’s owners were using company credit cards for personal shopping outings at Nordstroms and Bed, Bath & Beyond; to get massages; go to saunas; and to buy guns. That last one could only be a business expense if the owners were preparing for customers descending on them with pitchforks"

haha
 
Glad I never bought one of their products and glad these guys are finally getting what they deserve.
 
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