FTC Argues That BFL Should Not Resume Operations

Attorneys representing the FTC have argued that Butterfly Labs should not be allowed to resume operations on the basis that doing so would jeopardise assets which should be preserved for possible consumer redress. As part of their argument, the FTC presented an expert witness who testified that the machines BFL shipped to customers were already obsolete.

Acting CFO for BFL, Bruce Bourne, testified that the FTC's actions have cost BFL key employees as well as damaging relationships with BFL's vendors. He also noted that the court appointed receiver has so far accumulated over USD $1 million in fees and expenses, attributing part of this cost to hundreds of customer refunds. Jim Humphrey, an attorney representing BFL, once again called for the FTC to either show BFL is violating the law or is about to do so.

Judge Brian Wimes will now decide whether to grant the FTC's motion for a preliminary injunction which would keep BFL shuttered and under the hands of a receiver. Regardless of his decision, BFL is surely finished.

Source – http://www.bizjournals.com/kansascity/news/2014/11/24/judge-hears-butterfly-labs-ftc-debate-itcoin.html

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