Butterfly Labs allowed to resume operations, but only to settle outstanding orders

A recent statement by Butterfly Labs (BFL) mentions a Stipulated Interim Order that the company can “reopen its doors for limited

A recent statement by Butterfly Labs (BFL) mentions a Stipulated Interim Order that the company can “reopen its doors for limited operations.” They will not be allowed to service new customers (in the words of BFL, to “fully serve our customers as desired”). Instead, they will be working to settle existing customer orders under the supervision of the Court-appointed Temporary Receiver.

The statement goes on to say that “this lawsuit” has severely damaged its reputation and it is up to them to fix it. On the Federal Trade Commission (FTC) charges:

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“There are a number of unsubstantiated claims circulating about Butterfly Labs. We intend to address all inaccuracies in due course, including the false claims around burn-in testing and Butterfly Labs inappropriately mining bitcoins with customer equipment.”

The statement likely communicates the “business plan” reportedly agreed upon by the two parties. In effect, the development more or less satisfies the immediate desire of the FTC: to cease operations and settle outstanding grievances. The question will be what happens next, if/after this materializes and the company remains solvent. The implication is that they may return to business as usual.

The FTC did indicate, however, its views on intrinsic shortcomings in the company’s ability to conduct business in a lawful and ethical manner. From recent documents, it is clear that they believe the company should be shut down for good.

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