Butterfly Labs - Revision history

NotATether: Expand history; note FTC settlement and cessation

2026-09-22T17:01:47Z

Expand history; note FTC settlement and cessation

← Older revision		Revision as of 17:01, 22 September 2026
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|industry=[[Mining]]		{{Infobox company
	\|foundation=June 2012\|website=[https://web.archive.org/web/20150901000000*/https://butterflylabs.com https://butterflylabs.com (archived)]~~\| defunct = May 2016~~}}		\| name = Butterfly Labs, Inc.
			\| image = [[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]
			\| industry = [[Mining]] hardware
			\| foundation = June 2012
			\| founders = Nasser Ghoseiri, Sonny Vleisides
			\| location = Kansas City, Missouri
			\| defunct = effectively ceased after February 2016 FTC orders
			\| website = [https://web.archive.org/web/20150901000000*/https://butterflylabs.com https://butterflylabs.com (archived)]
			}}

	Butterfly Labs was a Missouri~~-based~~ company that ~~specialized in producing Bitcoin~~ mining hardware. ~~The company~~ was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.		'''Butterfly Labs''' was a Missouri company that produced bitcoin ASIC mining hardware. It was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides and was headquartered in Kansas City. The firm was known for early ASIC miners aimed at bitcoin hashing, improving efficiency relative to CPU and GPU mining of the period.

	~~Butterfly Labs became well~~-~~known in the Bitcoin industry~~ for ~~producing~~ some of ~~the first [[ASIC]] miners, which were designed specifically for processing Bitcoin transactions. This provided a major efficiency boost compared to~~ mining ~~[[Bitcoin]] with traditional computers~~ or ~~graphics processing units (GPUs)~~.		== Delivery controversies ==
			Customers who pre-ordered mining equipment often waited months or longer for delivery, and some reported never receiving machines. The U.S. Federal Trade Commission sued in 2014, alleging unfair and deceptive practices around availability, profitability, and newness of mining machines and around keeping consumers' up-front payments while delaying or failing to deliver.

	== ~~Lawsuit~~ ==		== FTC settlement ==
			On 18 February 2016 the FTC announced stipulated final orders with Butterfly Labs, part-owner and vice president of product development Sonny Vleisides, and general manager Darla Drake. The orders prohibit misrepresentations about whether a product can generate bitcoins or other virtual currency, about delivery dates, and about whether products are new or used. They also restrict taking up-front payments for mining machines unless the product is available and will be delivered within 30 days, with refund obligations if delivery misses that window, plus rules on refunds for damaged or defective goods and on permission before late delivery.<ref name="ftc">[https://www.ftc.gov/news-events/news/press-releases/2016/02/operators-bitcoin-mining-operation-butterfly-labs-agree-settle-ftc-charges-they-deceived-consumers FTC press release, 18 February 2016: Operators of Bitcoin Mining Operation Butterfly Labs Agree to Settle FTC Charges]</ref>

	Butterfly Labs ~~faced a number~~ of ~~delays~~ and ~~controversies over~~ the ~~course~~ of ~~its history~~. ~~Customers who pre-ordered mining equipment often~~ had ~~to wait months or even years to receive their orders, with some customers never receiving their orders at all~~. ~~This led to a number of complaints from frustrated customers~~, ~~and eventually culminated in~~ a ~~lawsuit by the US Federal Trade Commission (FTC) in 2014~~.		The same release states partially suspended monetary judgments: $38,615,161 against Butterfly Labs and Vleisides, suspended upon payment of $15,000 by the company and $4,000 by Vleisides; and $135,878 against Drake, suspended once she surrendered the cash value of bitcoins obtained using company machines. Judgments were suspended based on inability to pay and could become due if financial condition had been misrepresented. Those large dollar figures are suspended judgment amounts, not a recorded customer-refund total.<ref name="ftc" />

	~~The~~ FTC ~~alleged that Butterfly Labs had engaged in "unfair and deceptive practices" by taking payment for pre-~~orders ~~of Bitcoin mining hardware but failing to deliver~~ the ~~products to customers~~ in ~~a timely manner, if at all. The FTC sought to shut down~~ the ~~company and force it to refund its customers, as well as pay a penalty~~.		After the FTC orders the company effectively ceased operations. A precise final closure date after the February 2016 settlement is not established in the cited materials.

	In the end, Butterfly Labs reached a settlement with the FTC in May 2016. As part of the settlement, the company was required to pay a $15,000 fine and to refrain from making any misrepresentations about its products in the future. The company's founders were also ~~barred from engaging in any business related to Bitcoin mining or other cryptocurrencies for a period of three years.~~		== See also ==
			* [[Mining]]
			* [[ASIC]]
			* [[Companies]]

	~~Following the~~ FTC settlement~~, Butterfly Labs effectively ceased operations~~. ~~The company's website and social media accounts became inactive, and its founders moved on to other ventures~~.		== External links ==
			* [https://www.ftc.gov/news-events/news/press-releases/2016/02/operators-bitcoin-mining-operation-butterfly-labs-agree-settle-ftc-charges-they-deceived-consumers FTC settlement press release]
			* [https://web.archive.org/web/*/https://butterflylabs.com Archived butterflylabs.com]

	Despite its controversial history, Butterfly Labs played an important role in the early days of Bitcoin mining. The company's ASIC miners represented a major leap forward in efficiency and helped to drive down the cost of mining Bitcoin. Today, the Bitcoin mining industry is dominated by large-scale mining operations that use even more advanced technology, but Butterfly Labs is remembered as a pioneer in the space.		== References ==
			<references />

			[[Category:Defunct companies]]
			[[Category:Mining]]

NotATether: fix infobox company

2023-03-28T08:39:30Z

fix infobox company

← Older revision		Revision as of 08:39, 28 March 2023
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=[https://web.archive.org/web/20150901000000*/https://butterflylabs.com https://butterflylabs.com (archived)]\| defunct = May 2016}}		{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|industry=[[Mining]]
			\|foundation=June 2012\|website=[https://web.archive.org/web/20150901000000*/https://butterflylabs.com https://butterflylabs.com (archived)]\| defunct = May 2016}}

	Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.		Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.

NotATether: add links

2023-03-28T08:36:07Z

add links

← Older revision		Revision as of 08:36, 28 March 2023
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	Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.		Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.

	Butterfly Labs became well-known in the Bitcoin industry for producing some of the first ~~Application Specific Integrated Circuit (~~ASIC) miners, which were designed specifically for processing Bitcoin transactions. This provided a major efficiency boost compared to mining Bitcoin with traditional computers or graphics processing units (GPUs).		Butterfly Labs became well-known in the Bitcoin industry for producing some of the first [[ASIC]] miners, which were designed specifically for processing Bitcoin transactions. This provided a major efficiency boost compared to mining [[Bitcoin]] with traditional computers or graphics processing units (GPUs).

	== Lawsuit ==		== Lawsuit ==

NotATether: add an archive link

2023-03-28T08:34:55Z

add an archive link

← Older revision		Revision as of 08:34, 28 March 2023
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=~~http~~://~~www~~.butterflylabs.com/\| defunct = May 2016}}		{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=[https://web.archive.org/web/20150901000000*/https://butterflylabs.com https://butterflylabs.com (archived)]\| defunct = May 2016}}

	Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.		Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.

NotATether: fix infobox company

2023-03-28T08:33:47Z

fix infobox company

← Older revision		Revision as of 08:33, 28 March 2023
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=http://www.butterflylabs.com/}}		{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=http://www.butterflylabs.com/\| defunct = May 2016}}

	Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.		Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.

NotATether: Fill in the page for Butterfly Labs

2023-03-28T08:30:52Z

Fill in the page for Butterfly Labs

← Older revision		Revision as of 08:30, 28 March 2023
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=http://www.butterflylabs.com/}}		{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=http://www.butterflylabs.com/}}

			Butterfly Labs was a Missouri-based company that specialized in producing Bitcoin mining hardware. The company was founded in June 2012 by Nasser Ghoseiri and Sonny Vleisides, and was headquartered in Kansas City.

			Butterfly Labs became well-known in the Bitcoin industry for producing some of the first Application Specific Integrated Circuit (ASIC) miners, which were designed specifically for processing Bitcoin transactions. This provided a major efficiency boost compared to mining Bitcoin with traditional computers or graphics processing units (GPUs).

			== Lawsuit ==

			Butterfly Labs faced a number of delays and controversies over the course of its history. Customers who pre-ordered mining equipment often had to wait months or even years to receive their orders, with some customers never receiving their orders at all. This led to a number of complaints from frustrated customers, and eventually culminated in a lawsuit by the US Federal Trade Commission (FTC) in 2014.

			The FTC alleged that Butterfly Labs had engaged in "unfair and deceptive practices" by taking payment for pre-orders of Bitcoin mining hardware but failing to deliver the products to customers in a timely manner, if at all. The FTC sought to shut down the company and force it to refund its customers, as well as pay a penalty.

			In the end, Butterfly Labs reached a settlement with the FTC in May 2016. As part of the settlement, the company was required to pay a $15,000 fine and to refrain from making any misrepresentations about its products in the future. The company's founders were also barred from engaging in any business related to Bitcoin mining or other cryptocurrencies for a period of three years.

			Following the FTC settlement, Butterfly Labs effectively ceased operations. The company's website and social media accounts became inactive, and its founders moved on to other ventures.

			Despite its controversial history, Butterfly Labs played an important role in the early days of Bitcoin mining. The company's ASIC miners represented a major leap forward in efficiency and helped to drive down the cost of mining Bitcoin. Today, the Bitcoin mining industry is dominated by large-scale mining operations that use even more advanced technology, but Butterfly Labs is remembered as a pioneer in the space.

TheRealSteve at 00:00, 9 March 2015

2015-03-09T00:00:48Z

← Older revision		Revision as of 00:00, 9 March 2015
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	{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|~~x32px~~]]\|website=http://www.butterflylabs.com/}}		{{Infobox company\|name=Butterfly Labs, Inc.\|image=[[{{ns:file}}:Logo-butterfly_labs.png\|270x64px]]\|website=http://www.butterflylabs.com/}}

TheRealSteve: Created page with "{{Infobox company|name=Butterfly Labs, Inc.|image=x32px|website=http://www.butterflylabs.com/}}"

2015-03-08T15:06:43Z

Created page with "{{Infobox company|name=Butterfly Labs, Inc.|image=[[{{ns:file}}:Logo-butterfly_labs.png|x32px]]|website=http://www.butterflylabs.com/}}"

New page

{{Infobox company|name=Butterfly Labs, Inc.|image=[[{{ns:file}}:Logo-butterfly_labs.png|x32px]]|website=http://www.butterflylabs.com/}}