Butterfly Labs asks court to dismiss FTC campaign “to destroy” company

that Butterfly Labs (BFL) has filed a motion requesting that the Federal Trade Commission (FTC) charges against it be dismissed.

The is best summarized by its opening line: “Our Federal Trade Commission, no doubt well-intentioned, has strayed from its mission (and apparently its core values) in its campaign to destroy BF Labs Inc.”

BFL maintains that it’s difficult for even reputable tech companies to avoid fulfillment delays and goes on to cite cases it believes supply precedent to this claim. For what it’s worth, BFL also supplied evidence of its updates to the public about delays.

Interestingly, the document argues that the allowing the company to resume limited operations contradicts the FTC’s very claim that BFL is a “bogus company of scammers”. As noted in that story, the agreement only allowed BFL to settle existing customer orders under the supervision of the Court-appointed Temporary Receiver. Effectively, this is what the FTC was seeking.

A reverse argument can question why BFL is keen on having charges dismissed if the company has “reopened its doors” to business according to the agreement.

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