Just like the title says. Logs and depositions are coming out showing how much BFL did to defraud customers, other companies, banks, and whatever else. Some highlights:
there’s a lot of boilerplate bullshit but the very short version is they can ship out already paid for and finished machines, provided the customer wants them and not a refund, but that’s about it, and in 35 days they can submit a business plan to try to let BFL continue as a going company. this order is the FTC getting everything they wanted, in practice.
the slightly longer version:
1)they are forbidden from taking pre-orders
2)they can’t even think about touching any money or property of bfl, except to turn it over to the receiver
3)every single ‘defendant’ (bfl AND three of the heads) must bring every asset they own into the US and disclose it to the receiver. every asset, not just ones they might have stolen from bfl
4)every single defendant must also provide a complete financial accounting to the receiver – again, of their personal stuff as well
5)the temporary receiver stays in control and can do whatever the fuck he thinks is best
6)bfl can ship machines to people who want a machine but not a refund
without an order from the court:
7)bfl is prohibited from “burn-in” testing
8)bfl CANNOT make refunds
9)bfl can’t make any new sales at all
now, they have 35 days to come up with a business plan that:
1)replaces burn-in testing or justifies and discloses it (and what they’ll do with the money)
2)protects customers and their refund rights
3)lets it keep going as a business
my money is on that business plan gets laughed out of court and the company gets liquidated
There are some other intersting items in there
1) No refunds to be issued until audited financial statements are submitted to the court and calculation of assests vs liabilities. They only have 1.2 million in cash on hand and owe ?? from pre-paid orders wanting refunds. Likely to be calculated using the FTCs anyone who wants a refund can request one regardless of BFLs sketchy limitaions.
2) All holdings in Bitcoin to be converted to USD as soon as practical at sub $400 each probably
3) Work by BFL principals is unpaid
4) Business plan will likely require BFL to produce new miners upfront and sell only those units already produced.
5) The principal outside the US doesnt appear to be cooperating with the court / receiver
Seems highly unlikely that BFL and its principals have the capital to cover the liabilities re: refunds let alone front the cost to develop & produce new equipment prior to sale.
The entire order is fascinating. It freezes not just the assets of the company, but also the personal assets of Sonny and Jody. They basically have to ask permission from the temporary receiver to buy just about anything.
It also requires BFL to transfer all of their bitcoins to a court-operated wallet. They’ll be exchanged for USD, which will likely go to benefit the victimized customers. I wonder what the “my bitcoins literally cannot be taken away from me by any government unless I so choose” bitcoiners will make of this.