FTC pushes court again to shutter Butterfly Labs, presents live witness testimony

The Federal Trade Commission (FTC) brought live witness testimony in a renewed bid to shutter Butterfly Labs (BFL) for good.

The Federal Trade Commission (FTC) brought live witness testimony in a renewed bid to shutter Butterfly Labs (BFL) for good. One of the featured witnesses sought to demonstrate how, mathematically, BFL hardware was obsolete by the time it reached customer hands.

The two sides had previously come to an agreement allowing BFL to resume operations in a limited capacity. BFL would only be allowed to settle the outstanding orders of existing customers.

Join the iFX EXPO Asia and discover your gateway to the Asian Markets

More recently, the court handling the case approved the liquidation of BFL’s bitcoins in order to settle claims.

Suggested articles

Going Past the Great Wall: Things to Consider When Entering the Asian MarketGo to article >>

The latest hearing, which reportedly lasted all day yesterday, saw the FTC argue that closing the company was necessary in order to preserve assets for customers seeking compensation.

Lawyers for BFL countered that the FTC has yet to demonstrate how BFL was violating laws or is about to do so. FTC actions have cost the company key employees and damaged relationships with vendors.

In addition, BFL’s team pointed to the court-appointed receiver having thus far accumulated $1 million in fees and expenses- money which can go towards “hundreds of customer refunds”.

Got a news tip? Let Us Know