Judge Rejects Butterfly Labs Motion to Dismiss FTC Suit

After finally scoring a win against the Federal Trade Commission (FTC), a tough uphill battle still lies ahead for Butterfly

After finally scoring a win against the Federal Trade Commission (FTC), a tough uphill battle still lies ahead for Butterfly Labs (BFL).

BFL has been accused by the FTC of misleading advertising, delayed/unfulfilled customer orders/refunds leading to financial loss, and using customer-purchased equipment for its own mining operations.

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A couple of weeks ago, the mining hardware manufacturer was successful in its bid to fully resume business operations, the court rejecting FTC claims based on insufficient evidence. BFL’s assets were ordered released from control of the court-appointed Receiver, allowing them to operate freely provided they abandon the practice of pre-order sales.

But, as noted at the time, the ruling did not absolve BFL for past grievances. In October, they filed a motion seeking dismissal of the entire FTC suit, which BFL said was a campaign “to destroy” the company. However, Judge Brian C. Wimes of the US District Court for the Western District of Missouri has now rejected the motion.

The FTC has also filed a motion asking Wimes to reconsider his ruling allowing BFL to resume full operations.

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