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Developing Story: USMS and FTC Raid on Butterfly Labs

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MikeJohnson

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This morning Coin Fire received an unconfirmed report about Butterfly Labs stating that the company had been raided by the US Marshal’s Service in addition to the FTC.

Coin Fire has been in contact with the US Marshals Service this morning and early afternoon in Kansas that would be directly responsible for this raid and received an official word that none of the agents operating out of the District of Kansas offices and were told via the telephone that from several agents including the head of the office,

None of our agents at this time are involved in any field operations about Butterfly Labs. We are not typically involved in cases with other agencies such as the FTC unless ordered by a judge and those orders come very rarely baring some sort of illegal drug activities.

Full Text: http://coinfire.cf/2014/09/19/developing-story-usms-ftc-raid-butterfly-labs/

These reports are totally unconfirmed at this time. Speculation?

Posted on September 19, 2014 at 12:35 PM

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• lovebitcoins

  

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  Thank you for taking the time to do the leg work on this story.

  I still don't understand why some sites have such trouble picking up a telephone and making calls like you do.

  Posted on September 20, 2014 at 11:44 AM
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• MikeJohnson

  

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  We've got someone actually visiting the FTC on Monday to see about obtaining any relevant documents if they exist regarding this on-going story.

  Posted on September 21, 2014 at 10:35 AM
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• ltb4me

  

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  Has BFL actually failed to deliver customer orders altogether or just shipped them so late that ROI was impossible? I always thought it was the later but am curious if they've gotten even worse...

  Posted on September 21, 2014 at 1:25 PM
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• MikeJohnson

  

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  Turn's out this is true: http://coinfire.cf/2014/09/23/official-ftc-complaint-butterfly-labs-obtained/

  Posted on September 23, 2014 at 7:14 AM
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• wildjo

  

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  Location: Appalachia, United States

  This story is bitter sweet. Personally, I'm so glad BFL has been shut down. Not only did they fail to provide promised product in a timely fashion, but they treated their customers like shit throughout the process.

  However, the fact that the market couldn't take care of this cancer and that we needed a government agency to step in to shut BFL down is a blow to those who believe that an unrestrained market is better than one managed by government.

  Were wannabe miners blinded by their dreams of quick riches? Was the new wave of customers that ordered Monarchs just plain stupid? Far too many people were hurt by BFL and the market was too slow to react. Hell, the FTC was too slow to react, but at least they ultimately did.

  Posted on September 23, 2014 at 7:51 AM
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