Bitcoin mining: FTC continues its win streak (when the court doesn’t hear the other side)

The Federal Trade Commission scored another ‘victory’ in court this week (meaning that the defendant was not given a chance to tell its side of the story to the judge before the court ruled, the FTC’s usual modus operandi).  Butterfly Labs, a seller of Bitcoin mining hardware, is accused by the FTC of providing untimely and useless computers that were supposed to enable consumers to ‘mine’ for the electronic currency.  Similar accusations have been made in a class action already pending against the company.  And by state officials.  As Butterfly Lab itself says, the FTC is ‘late to the game’ on this one.

Nonetheless, because this is the first “Bitcoin”-related action taken by the FTC, it has been big news, with coverage in Forbes, CNET, the Wall Street Journal, etc.  Most of those articles, though, only included the FTC’s Complaint; we thought people might also want to see Butterfly Labs’ official response, which was filed with the court on September 23.  Butterfly Labs has asked for an opportunity to provide oral testimony at a hearing next week.