The Federal Trade Commission (FTC) has caused Kansas-based Butterfly Labs (BFL) more than a few problems as of late. Having previously succeeded in halting the BFL’s operations, the FTC wants justice for the consumers they represent who claim to have received products extremely late and not as described.
Butterfly Labs, on the other hand, just wants to be the entire situation behind themselves and continue their business of manufacturing cryptocurrency mining hardware.
In fact, the company is looking to have the FTC’s complaint dismissed, according to a lengthy statement released today (sent to me via email from their public relations company).
Unabridged, here it is:
On Friday, October 10, Butterfly Labs filed a Motion to Dismiss the Federal Trade Commission’s complaint against the company. The lawsuit is pending in the United States District Court for the Western District of Missouri.
The Motion to Dismiss describes how the FTC’s claims are insufficient as a matter of law and consequently should be dismissed with prejudice. Although filed at an early stage in the litigation, Butterfly Labs views the Motion to Dismiss as an important opportunity to address the legal merits of the lawsuit. Since the filing of the FTC complaint, Butterfly Labs has been working to restart its suspended business operations as well as defending itself against the FTC’s media campaign claiming that Butterfly Labs is “bogus” and its people are nothing more than “scammers.” Butterfly Labs vigorously disputes these claims, as well as the overall validity of the lawsuit.
Butterfly Labs is not alone in its criticism of the FTC’s actions. Attorneys in a related lawsuit have described in a court filing how the FTC’s actions have actually harmed, not helped, Butterfly Labs’ customers.
Butterfly Labs continues to diligently work with the court-appointed Temporary Receiver to resume operations as contemplated under the Court’s Stipulated Interim Order issued on October 2. Taking care of customers is our primary focus, and we look forward to doing so to the extent we are allowed, under the restrictions placed on us by the FTC…
Certainly, a very dramatic situation. It will be interesting to see where this goes from here.