Developing Story: Rumors of USMS and FTC Raid on Butterfly Labs

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UPDATE AT 9:57am Tuesday:

This story has turned out to be FACT. Full story is here.


 

This morning Coin Fire received an unconfirmed report about Butterfly Labs stating that the company had been raided by the US Marshal’s Service in addition to the FTC.

A post also was created on Bitcoin Talk from a user reporting to be a former employee of the company who was receiving information from others.

Screenshot 2014-09-19 15.06.19

This post along with a thread posted on /r/bitcoin on reddit has led to rampant speculation to the validity of the claims.

Coin Fire has been in contact with the US Marshals Service this morning and early afternoon in Kansas that would be directly responsible for this raid and received an official word that none of the agents operating out of the District of Kansas offices and were told via the telephone that from several agents including the head of the office,

None of our agents at this time are involved in any field operations about Butterfly Labs. We are not typically involved in cases with other agencies such as the FTC unless ordered by a judge and those orders come very rarely baring some sort of illegal drug activities.

Coin Fire reached out to the FTC who stated via the public information offices on Monday at 2:25pm the following:

At this time we are unable to respond to this story or any court ordered actions that may have been issued in regards to this company for the date given. If and when this changes an official statement will be provided to your organization.

On Tuesday morning the FTC changed gears and reissued a new statement stating:

“We often see that when a new and little-understood opportunity like Bitcoin presents itself, scammers will find ways to capitalize on the public’s excitement and interest,” said Jessica Rich, director of the FTC’s Bureau of Consumer Protection. “We’re pleased the court granted our request to halt this operation, and we look forward to putting the company’s ill-gotten gains back in the hands of consumers.”

This story will be updated as more information becomes available and via our Twitter: @CoinFireBlog

Image courtesy of BTC Keychain

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Coin Fire

Coin Fire is a cryptocurrency news site started on June 6th of 2014. The site focused on hard-hitting investigative stories. Coin Fire was acquired by 99Bitcoins on October 2015.

18 Comments

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  1. Don’t you think it might be, you know, responsible to put that it’s a rumor in the headline? Is this site run by five-year-olds?

    • I’ve updated the headline at this time. The story has been very clear since it was initially published that this was a rumor and that our news team has been in direct contact with the USMS who confirmed that it is a false rumor.

      Just to be sure it is very clear though, I’ve updated the headline.

        • We reported it because others reported it as facts to show that it isn’t a fact.

          I’m not sure what wasn’t clear about that.

          We’ve been clear since the moment we initially published that we have been on the phone with the relevant agencies and that they have all stated to us this isn’t true while the original story is still skyrocketing on reddit as a fact.

          • Your previous title would have suggested the news was real. You thought you had a scoop, and it’s turned out to be a rumor. That’s all.

    • Hey Stevie,

      How about you go fuck yourself?

      They were pretty clear what this was from the beginning. Think you can do better? Start your own fucking news site.

      They have been really clear on Twitter, even flying someone out to the FTC. I don’t see your “news site” doing that or any others for that matter.

      P.S

      Go fuck yourself.

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