A Bitcoin -related company that allegedly engaged in deceptive marketing of specialized computers designed to mine the cryptocurrency has been shut down at the request of the US Federal Trade Commission.
Based on a complaint filed earlier this month against Butterfly Labs, the FTC alleged that the company charged consumers thousands of dollars for computers that mine Bitcoins, but then failed to deliver the machines “which were virtually useless, or in many cases, did not provide the computers at all.”
Jessica Rich, the director of the FTC's Bureau of Consumer Protection, said in a statement: "We often see that when the same new and little-understood opportunity presents itself, like Bitcoin, fraudsters find ways to capitalize on the public's excitement and interest. We are pleased to report that the court granted our request to halt this process, and we look forward to putting the company's ill-gotten gains back into the hands of consumers."
