Butterfly Labs, FTC, reportedly in talks for “business plan” to move forward

The Kansas City Star reports that Butterfly Labs (BFL) and the Federal Trade Commission (FTC) have entered negotiations which may

The Kansas City Star reports that Butterfly Labs (BFL) and the Federal Trade Commission (FTC) have entered negotiations which may allow BFL to resume operations.

The business was placed under temporary control of a federally-appointed receiver, its assets frozen, following FTC allegations of wrongdoing.

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Judge Brian C. Wimes proposed to the litigating parties: “What if we have a plan that’s acceptable, that’s a business plan?” The temporary receivership had been extended as the receiver worked on a plan that can help BFL move forward. Attorneys from both sides praised the plan, although no details were disclosed.

Such an approach seemed unlikely after the two parties traded strongly worded accusations in court documents. Jim Humphry, an attorney representing BFL, also reportedly told Wimes that they two sides were not in negotiations. “The FTC called us ‘scammers’ and ‘bogus.’ There’s nothing to talk about if that’s their position.”

An attorney from the Johnson County district, Stephen Howe, confirmed that his office has been separately investigating BFL and that they have been cooperative. BFL had cited this investigation as purported evidence of their goodwill and of the FTC’s supposed superfluous meddling in its affairs. Howe reportedly hoped the FTC action won’t interfere with what his office is trying to accomplish, implying the existence of yet other ongoing plans or negotiations.

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