Butterfly Labs Issues Statement on FTC in U.S. District Court

The drama involving Butterfly Labs continues, it appears.

And while the Federal Trade Commission (FTC) has sought to put the Kansas-based company out of operation through an injunction, it would seem the Butterfly Labs will continue coasting along for a bit longer.

A Stipulated Interim Order was entered today by the United States District for the Western District of Missouri, allowing the bitcoin mining hardware manufacturer to unlock their doors and continue working.

The company, which produces miners like the Monarch and Jalapeño, issued the following statement Thursday (sent to us by email by the company’s PR firm):

Although Butterfly Labs is still disturbed with the Federal Trade Commission’s rush to judgment and labeling of the company as bogus and scammers, Butterfly Labs is pleased by the Court’s entry of a Stipulated Interim Order, which allows the company to reopen its doors for limited operations. While the Order does not allow Butterfly Labs to fully serve our customers as desired, it is a step in the right direction and will allow for limited order fulfillment. During the period of the Court’s Order, Butterfly Labs will continue to cooperate closely with the Court-appointed Temporary Receiver.

Butterfly Labs views the Order as a promising sign for the future of our company, our customers, and our employees. This lawsuit has severely damaged our reputation and it is up to Butterfly Labs to attempt to repair that damage.

There are a number of unsubstantiated claims circulating about Butterfly Labs.  We intend to address all inaccuracies in due course, including the false claims around burn-in testing and Butterfly Labs inappropriately mining bitcoins with customer equipment.

Butterfly Labs thanks its many customers, employees, and business partners for staying with us during this challenging time.

In the third paragraph, the company is alluding to recent allegations that the company used customer mining hardware to mine bitcoin for their own financial gain.

Some might argue that Butterfly Labs had a damaged reputation before this kerfuffle with the FTC. From long product delays to less than stellar attitudes, the company has struggled to regain the trust of consumers.

Whether or not they’ll have the opportunity to continue trying in the long run remains to be seen.

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