Bitcoin mining company Butterfly Labs accepts settlement

Bitcoin mining company Butterfly Labs and two of its executives have agreed to settle allegations of fraud after they received money but did not deliver products as per specifications, the U.S. Federal Trade Commission (FTC) said on Thursday, Reuters reported.

According to the settlement ruling, Butterfly Labs will not be allowed to collect payments from buyers in advance when developing mining machines. The mining machine must be delivered within 30 days of payment, otherwise a full refund will be required. In addition, Butterfly Labs and Sonny Vleisides, the company's vice president of product development, must pay court trial fees of US$38,615,161, but if the former completes the payment of a fine of US$15,000 and the latter completes the payment of a fine of US$4,000, the trial fee can be waived. Similarly, Darla Drake, general manager of Butterfly Labs, also faces court fees of US$135,878, but if he gives up all Bitcoin assets obtained from mining with the company's mining machines, they will be waived. (Lu Xin)