FTC shuts down Butterfly Labs, warns of "scammers" looking to capitalize on Bitcoin excitement

The Federal Trade Commission (FTC) has shut down Butterfly Labs (BFL) over alleged fraud. Company assets will also be frozen, earmarked for restitution to customers.

Permission for the closure, which is pending trial, was granted by the US District Court for the Western District of Missouri.

The Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term mining equipment manufacturer had been the subject of over 300 complaints to the FTC, which accused the company of unfulfilled/delayed shipments and refunds, contrary to what the company had advertised.

Social media forums had been full of talk accusing BFL of being scammers for months. BFL was also accused of orchestrating the takeover of the Buttcoin website and removing posts critical of the company.

Jessica Rich, Director of the FTC’s Bureau of Consumer Protection, said:

"We often see that when a new and little-understood opportunity like bitcoin presents itself, scammers will find ways to capitalize on the public’s excitement and interest. We’re pleased the court granted our request to halt this operation, and we look forward to putting the company’s ill-gotten gains back in the hands of consumers."

Several other mining equipment manufacturers have been the subject of similar controversy. The FTC action may serve to embolden customer claims of rampant misconduct throughout the industry, and even motivate authorities to investigate other companies.

The developmemt also underscores the prevalence of risks still threatening the crypto industry. These now go beyond hacking and theft of bitcoins, price Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term, illegal trade and Ponzi schemes, now entering the realm of physical goods manufacturing.