The Federal Trade Commission (FTC) has filed a 17-page document that aims to rebut Butterfly Labs’ (BFL) arguments in its defense and details several of BFL’s alleged wrongdoings.
The document points out that BFL has not denied several of the FTC’s accusations.
One of the most attention-grabbing passages reads:
“Further demonstrating Defendants’ disregard for their customers, they used corporate funds to make and mass order red foam pitchforks mocking their own customers, emblazoned with the words, ‘Y U NO SHIP – BFL IS LATE!'”
In a discussion on a reddit thread, a commenter claims to have received the pitchfork along with other merchandise sent to assuage dissatisfaction over shipping delays. Commenters posited that maybe, BFL’s intentions weren’t so base. Instead, BFL attempted to generate a “moment of levity and self deprecation to cut the sting of the delays”, which would make for a very odd sense of humor.
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The document reiterates and delves into more detail on the following allegations:
– Customer equipment was used by BFL for their own mining. A former employee said that up to 500 units would be run in 3 separate “burn in” rooms at the same time.
– The hashing power and power consumption of machines was falsely advertised.
– Customers waited several months of deliveries, by which time the already used machines were outdated.
– Refunds were either significantly delayed or unfulfilled.
The document also dismisses BFL claims of taking steps to improve its business practices, arguing that malpractice continued even after such steps were taken.