Has Butterfly Labs Been Raided By The US Marshal? - From The CoinFront

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Late last week, a rumour began that Butterfly Labs was raided and shut down by US authorities.

It all began with a post on the Bitcointalk forum, where a user mentioned having some inside information:

Did somebody mention the FTC? Apparently the FTC showed up with US Marshals today and closed the place down, seized their assets, and sent everyone home. I only have personal confirmations of this at the moment as I am a former employee but I expect this to be verified in the news soon. You heard it here first.

Coin Fire reached out to the US Marshals, though, and confirmed that they are not currently involved in any operations involving 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.

The same user, however, who posted the original rumour stood by his claim, even further expounding on it:

I understand that there may be a large contingency of people who do not believe what I posted earlier or will not believe it until they see it in the news or a government agency confirms it. But I hold in my hands a 33 page ex parte temporary restraining order filed by the FTC against BFL on 9/18/14 that names three individuals associated with BFL in it, specifically. I am not releasing it at this time for two reasons: 1) the person who gave it to me hasn’t given me the permission yet, 2) it says “*Sealed*” on the bottom of the page next to the case number. I believe the fact that it is sealed is the reason government agencies have not commented on it at this point.

At this point, any reporting is pure speculation. However, given Butterfly Labs’ fairly negative reputation within the Bitcoin community and a number of accusations of scamming levied against them both within the legal realm and otherwise, the community will surely be waiting with bated breath to discover more details on this case.

The CoinFront will continue to report on this matter as it unfolds.



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Has Butterfly Labs Been Raided By The US Marshal?