By
Mayowa Adebajo
April 15th, 2024
Butterfly Labs has proceeded its business operations and has updated website following their encounter with the FTC.
Butterfly Labs, the Missouri-based bitcoin mining company, has recently announced its recovery on its website. Looking back, the company has been ceased by the US Federal Trade Commission (FTC) after it was accused of public misrepresentation and fraud on September 18th. Before the shutdown, FTC received a lot of complaints from customers that accused Butterfly Labs of refund payments and delaying shipments. According to FTC, the US District Court for the Western District of Missouri allowed the agency to freeze the firm’s assets and close its pending trial.
However, on December 12, 2014, the US District Court dismissed the FTC’s appeal and allowed Butterfly Labs to proceed operations. The court handed the company’s assets back to its deserved owners on termination of the suspension.
Butterfly Labs has expressed their appearance to customers on their website:
“We remain as committed as ever to serving you, our customer, to the best of our capabilities going forward. However, after more than three months of closure or severely limited operations we need to assess the status of all aspects of our business and determine the damage caused; we ask that you please be patient as we restart full operations and try to mitigate the impact of the shutdown.”
Butterfly Labs has already started shipping Monarch Bitcoin mining hardware to customers that still want to receive it. Besides, the company is establishing a new refund system that is favorable to users.
“Monarchs are currently shipping. We will notify any customers with orders ready for shipment to select whether they would prefer to take delivery of equipment or submit a request for a refund. Refund and rebate payments will be processed in the order received (including those on hold during the FTC action). We will resume paying refunds and rebates as soon as we’re operationally ready. We anticipate being able to start paying refunds in bitcoin in January. Because the cost of the Temporary Receivership and our legal defense against the FTC have consumed a substantial portion of our cash reserves, we anticipate being able to resume cash refund and rebate payments in late January or February.”
The company’s customers report receiving their bitcoin refunds from Butterfly Labs via Reddit. Furthermore, Butterfly Labs is now providing “heavily discounted” cloud mining contracts, supposedly with hardware that they have remaining. Seems like the company has a lot of lost revenue to make up for given the break on operation during the FTC investigation. The company’s new website reveals that Butterfly Labs is still looking to develop the BitSafe, bitcoin hardware wallet, which is considered their most prominent business idea ever.