Last updated on November 4th, 2014 at 04:34 am
Yesterday in an another twist of the SEC versus Butterfly Labs the Judge Brian C. Wimes granted a motion of to allow the sales of Butterfly Labs bitcoins to begin building up cash levels for potential customer refunds. The Temporary Receiver Eric L. Johnson made a sealed request (not available to the public) on October 29th to the judge requesting the ability to begin liquidating the Butterfly Labs bitcoins.
The exact details remain hidden from public review due to a request stating to the court,
In support of its motion, Temporary Receiver states that the underlying motion contains sensitive and proprietary information regarding Receivership Property.
The motion was granted and the court has ordered that the Temporary Receiver may now begin liquidating coins with a motion reading in part,
The order also authorized the Temporary Receiver to “begin establishing an adequate cash reserve to cover potential refund liability. In this respect and under the supervision of Temporary Receiver, the following actions may occur immediately . . . Conversion of Receivership Defendant’s substantial bitcoin holdings to cash on a systematic and reasoned basis.”
The Stipulated Interim Order requires all parties to “cooperate in transferring Receivership Defendant’s bitcoins to a Court-controlled bitcoin wallet, under the direction and supervision of Temporary Receiver. Temporary Receiver may hire independent professionals and/or contractors, as he deems necessary, to ensure safe and secure transfer of bitcoins.”
IT IS ORDERED that the Temporary Receiver’s proposed Transfer Protocol containing the methodology for transferring bitcoins held in Receivership Defendant Butterfly Labs Inc. (BFL)’s Storage Wallet to a Court-controlled bitcoin wallet,
Two documents remain under seal from the time the motion was made urging the court from the Temporary Receiver until the time the motion was granted by the court. Coin Fire has learned that these documents contain financial statements about the company’s assets in a bitcoin wallet and the other containing details about the court controlled bitcoin wallet. Both of these documents will remain under seal and away from public view for the time being.