Butterfly Labs, the embattled Bitcoin mining manufacturer, has been in talks with federal attorneys to resume some of its operations.
A hearing yesterday was held to decide whether the temporary shutdown order would be replaced by a more permanent one. Instead, the temporary order was extended until Friday, and Butterfly Labs’ attorneys are now in talks with the FTC.
Jim Humphrey, an attorney representing Butterfly Labs, refused to comment on the situation, though he told the Kansas City Star “we remain optimistic that we will be able to serve our customers again soon.”
Court Proceedings
US District Judge Brian C. Wimes is presiding over Butterfly Labs’ proceedings.
The FTC at first seemed hostile to Butterfly Labs. On Monday, an FTC attorney carried a red foam torch into the courtroom, similar to a foam finger souvenir from a sporting event. The torch saw printed with the phrases “BFL is late!” and “Y U NO SHIP!”, indicating a confrontational attitude toward the company.
The FTC has also accused Butterfly Labs of dishonest business practices. “We often see that when a new and little-understood opportunity like Bitcoin presents itself, scammers will find ways to capitalize on the public’s excitement and interest,” said FTC representative Jessica Rich.
However, when Butterfly Labs attorneys presented a business plan for Butterfly Labs to resume part of its operations, the plan was met with praise from both sides.
Butterfly Labs
Meanwhile, Butterfly Labs is faced with a difficult position.
Having built a reputation as a company which is either unwilling or unable to deliver on its promises, it’s hard to imagine a future where Butterfly Labs could resume their operations, rejoin the Bitcoin sphere, and become a profitable company.
Butterfly Labs, meanwhile, maintains it has done nothing wrong, and has painted itself as a victim of an upcoming FTC witch hunt against Bitcoin-related businesses.
Butterfly Labs Fights For Their Life
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