Butterfly Labs Has Become a Legal Clusterfuck

On October 28th the FTC released a statement opposing the defendants of the Butterfly Labs case (Darla Drake, Nasser Ghoseiri and Sonny Vleisides) intentto pay for their attorney fees with frozen funds. If you remember fondly, Butterfly Labs stole that cash from consumers, so the FTC is saying they shouldn’t be allowedtouse said stolen funds to support/defend themselves. Note that this is just them opposing it, since they aren’t actually ruling on anything. That’s the courts job.

Meanwhile, the Western Missouri District Court just published a new2 page order saying Butterfly Labs needs to stop acting like a huge asshole or else they’re going to be called into court fora separate case to talk about their behavior.

So whats been going on? According to the report:

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