Butterfly Labs: $1 Million Owed and no End in Sight

The saga of miner manufacturer Butterfly Labs’ troubles continues for its alleged failure to fulfill orders and use of customers’ prepaid machines, and the scale of the problem is becoming apparent.

Documents obtained by Ars Technica under the Freedom of Information Act show that there are in total almost 300 complaints against the beleaguered company, pertaining to orders worth in excess of US$1 million.

An additional claimant alleges US$30 million worth of fraud, which has been omitted from the count as it refers to “30,000 customers”.

Status quo

The road to this point for Butterfly Labs has been long and complex almost to the point of being almost impossible to follow, and the future remains equally uncertain. The main question on everyone’s lips is whether outstanding funds will be returned to long-suffering customers, this has so far remained unanswered.

The complaints filed to the Federal Trade Commission (FTC) are not guaranteed to result in a payout, Ars Technica noted: “The FTC only receives complaints and then, if it feels that the case is warranted, can bring litigation.”

A spokesman for the FTC furthermore told the publication: “The FTC can’t resolve individual complaints, but we can provide information about what next steps consumers should take.”

Ars Technica has compiled the data from the information obtained in a spreadsheet, which may be accessed via the original article here.

Results from what one lawyer representing claimants of an earlier lawsuit against the company described as “the bad actors” of Bitcoin have yet to be seen.

As well as Butterfly Labs, Coin Telegraph reported this week on another mining manufacturer currently facing the threat of legal proceedings. HashFast has received an involuntary bankruptcy notice in action from several claimants over undelivered equipment, one corporate customer alleging over US$280,000 in losses.

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