Bitcoin mining company Butterfly Labs reaches settlement with FTC

On February 19, the U.S. Federal Trade Commission (FTC) said on Thursday that Bitcoin mining machine developer Butterfly Labs has accepted the FTC's settlement ruling. As early as 2014, Butterfly Labs and its two executives were accused of fraud for collecting money but not delivering according to specifications, and were sued by the FTC. According to the settlement ruling, Butterfly Labs will not be allowed to collect payments from buyers in advance to develop mining machines. Mining machines 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, are required to pay $38,615,161 in court costs, but if the former completes a $15,000 fine and the latter completes a $4,000 fine, the court costs can be waived. Similarly, Darla Drake, general manager of Butterfly Labs, also faces $135,878 in court costs, but if she gives up all the Bitcoin assets she has mined using the company's mining machines, they will be waived.

Original article: http://www.coindesk.com/ftc-settles-charges-against-bitcoin-mining-firm-butterfly-labs/
Compiled by: cnbeta