Feds going after Butterfly Labs
 

Pretty interesting. I don't know much about Butterfly Labs but I remember reading some of the complaints that the local bitcoin guys had and it always seemed fishy.

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Federal authorities believe that the three named members of the company?s board of directors?Jody Drake (aka Darla Drake), Nasser Ghoseiri, and Sonny Vleisides?spent millions of corporate revenue on all kinds of things, including saunas and guns, while ignoring many customer orders that went unfulfilled or were significantly delayed.

http://arstechnica.com/tech-policy/2...tic-deception/

The only thing surprising about this is that it didn't happen sooner :2 cents:

Woa someone gave them $62K as a pre-order? That was pretty dumb.

They screwed SOOO many people including a couple personal friends of mine. I am so thankful that I did not go into this venture with them.

Bfl always sucked. Their first line of fgpa products never saw a positive roi (if you bought them with btc). Those were pre-ordered in late 2011 and didn't arrive until mid 2012.

what AK said.

Cool, thanks for posting this...I used to be into bitcoin and remember all the stuff going on about Butterfly Labs.

Feds got nearly 300 complaints :disgust

they will do a little jail time it seems.

I don't know whether to be surprised it's happening, or surprised it took so long.

Wait till their books get cooked, then this story will get interesting ;)

Is there any company or person involved early in bitcoin which did not ended bad like those mtgox, butterfly labs, bitinstant (its founder Shrem was arrested due to silk road connections) and so on?

Anything that happens to them, they had it coming, plus more.


There does seem to be a disproportionate amount of scammers and scumbags that got in early in the Bitcoin world.

A ...greed!

Not one fuck was given....

"Defendants either never delivered these machines or delivered them so late that they became obsolete."

sounds about right :2 cents:

and all of the sudden the feds think they may have a handle on the situation is nothing but comedy...stay posted