Butterfly Labs Reopens amid Controversy

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Butterfly Labs Reopens amid Controversies

ForexMinute.com – Just a few days eallier, a Federal judge temporarily suspended the disreputable Bitcoin mining company Butterfly Labs over some serious accusations made by its customers. However, another judge, named Brian C. Wimes, allowed the company to restore its cryptocurrency operations, though with certain restrictions. There has been no elaboration of those “limited operations” till now.

The only official statement available in the public domain is from Butterfly Labs itself. The company shows its disappointment with the earlier rulings by the Federal Trade Commission, but seems equally thankful for overruling the judgment. The mining hardware manufacturers cites a “Stipulated Interim Order” as their savior in tough times, which allows them to restore their operations, though with certain restrictions. The statement reads:

“While the Order does not allow Butterfly Labs to fully serve our customers as desired, it is a step in the right direction and will allow for limited order fulfillment. During the period of the Court’s Order, Butterfly Labs will continue to cooperate closely with the Court-appointed Temporary Receiver.”

Over 20,000 customers, who earlier accused Butterfly Labs of deliberately delaying the orders so that they could use the mining equipment for their personal gains, are visibly disappointed with the news. Though under the framework of law, the new rulings are indeed shocking in terms of morality and righteousness. Butterfly Labs have been subjected to severe criticism since their inception two-years back.

According to the reports submitted by the investigation team appointed by the Federal Trade Commission (FTC), the owners of Butterfly were found to be misusing customer funds on personal use – one of them including the purchase of guns. The growing pessimism for the company also made PayPal cut its business ties with them.

Butterfly Labs might have received a lifeline which it didn’t deserve in the first place, but there is hardly any chance they would be able to woo potential leads for a long time.

To contact the reporter of the story: Yashu Gola at yashu@forexminute.com