A new report reveals that ButterflyLabs customers have submitted 283 complaints against the company – worth more than $1m in combined refunds and late orders – to the US Federal Trade Commission (FTC) since 2012.
According to documents revealed by Ars Technica, the complaints against the Kansas-based ASIC miner manufacturer are for orders totalling $1,016,243 across a period of about 17 months (see the report data here).
The first complaint was filed in September 2012, with the most recent complaint having been submitted on 15th April of this year.
Notably, one entry made a claim for $30m with no date attached. This entry has been omitted from our tally of orders claimed from ButterflyLabs.
Complaints over delays
The FTC complaints range from outstanding orders to refunds that have not been received.
One customer in Hawaii, who paid $30,247 to ButterflyLabs last March, but is still awaiting their shipment, wrote:
According to Ars Technica, ButterflyLabs lost a civil case last November, with the plaintiff receiving an award of $13,000. The company is also facing a class-action lawsuit filed last month to recover an alleged $25m in customer pre-payments.
Noah Wood, one of the lawyers representing the customers, wrote in a post announcing the suit:
Federal penalties possible
The FTC complaints are only the first step in a process that may see Butterfly Labs investigated by law enforcement agencies.
The firm could also face civll penalties imposed by the FTC, which is charged with enforcing a variety of antitrust and consumer protection laws, including fraud.
However, there is no guarantee these customer complaints will result in any form of restitution, according to a FTC spokesperson, who told Ars Techina:
Featured image: jbtaylor/Flickr
DISCLOSURE
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.