US Bitcoin Company Was Allowed to Resume Some of its BusinessAdded: Tuesday, October 14th, 2014
Category: Recent Headlines Involving File Sharing > Current Events
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The federal judge ruling said that a Kansas Bitcoin company, which was previously closed down after being sued by the federal government, can now resume some of its business.
Indeed, the US district judge recently let the Kansas-based Butterfly Labs Inc to reopen for limited operations. The Bitcoin company’s assets were frozen, and a federal receiver was given temporary control of the entity on 18 September. This was when the Federal Trade Commission sued Butterfly on the charges of defrauding up to 20,000 customers out of between $20 million and $50 million, according to the local media reports.
The officials of the Bitcoin company denied all the allegations. They also claimed in a statement that the federal judge’s order was a positive step. At the same time, the representatives of the company insist that they will continue to address a number of so called “inaccurate allegations”. The statement explained that while the court order didn’t allow the company to fully serve its customers as desired, it was still a step in the right direction that would allow for limited order fulfillment. Media reports also confirmed that federal attorneys and the officials of Butterfly Labs Inc started negotiating a few days ago to resolve the problems.
As you know, Bitcoins are cryptocurrency – some sort of virtual currency used to buy and sell some goods and services without having to use government-issued money. These digital coins are “mined” (created) by computers set up to resolve complex algorithmic formulas. The calculation process earns a person Bitcoins.
According to the FTC, Butterfly Labs either didn’t deliver computers for performing these operations to customers or sent the computers that didn’t work and couldn’t earn customers Bitcoins.
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Tuesday, October 14th, 2014
|Butterfly Labs is not Bitcoin. Butterfly Labs makes computers that were advertised to mine BitCoin.||
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