Bitcoin mining machine butterfly
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More from The Register. That left some customers wondering whether they would receive an automatic upgrade to the new model when their orders finally shipped. But according to the FTC complaint, they should have been wondering whether they'd receive their orders at all. By August , the agency claims, "few, if any" of the new machines had shipped, either.
Customers who did have their orders fulfilled reported that the machines were essentially useless upon arrival, because the shipping delay — combined with the ever-increasing difficulty of Bitcoin mining — meant the outdated equipment would no longer be able to generate the amount of virtual cash that Butterfly had initially promised.
On September 18, the court granted a temporary restraining order suspending the company's operations and freezing its assets, pending a September 29 hearing. For its part, Butterfly claims it was in the process of fulfilling its remaining orders and processing requested refunds when the FTC unilaterally shut it down, "contrary to our intended system of governmental checks and balances.
To the contrary, Butterfly Labs is very real. The FTC plans to use the hearing to request a preliminary injunction that will keep Butterfly's doors closed, pending a full trial. If successful, the financial hardship such a move would cause the company will likely be its death knell. The Register - Independent news and views for the tech community. Part of Situation Publishing. Join our daily or weekly newsletters, subscribe to a specific section or set News alerts.
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