The Federal Trade Commission shuts down Kansas-based Butterfly Labs for deceptive business practices. The company took over $50 million in pre-orders for ASIC Bitcoin miners but was caught mining with customers' hardware before shipping it -- often months or years late. Over 500 customer complaints piled up. The case becomes a cautionary tale about trusting third parties in the mining hardware gold rush and the dangers of pre-order mania.
FTC Press Release