Bitcoin business in KC area vows to fight federal shutdown

Bitcoin | Courtesy of Atana/Flickr
The FTC alleges Butterfly Labs took some $50 million in a bitcoin scam. | Courtesy of Atana/Flickr

The Federal Trade Commission has sued a Leawood, Kan., company, alleging it took more than 20,000 consumers for as much as $50 million in a bogus bitcoin business. The company, Butterfly Labs, sold computers that it said could generate the virtual currency for the buyers but failed to deliver the machines or sent worthless equipment, according to the agency’s complaint in U.S. District Court in Kansas City.

The FTC said the court issued a temporary restraining order that had shut down the business. The company said “we are not going away without a fight to vindicate bitcoin, our company, and our employees.”

Read more from the Kansas City Star

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