Butterfly Labs is one of the more infamous name in the world of Bitcoin and digital currency. As Butterfly Labs (BFL) was a Bitcoin ASIC manufacturing company, they managed to become a big name in the mining space back when ASIC’s were only just hitting the market. However, after missing deadline after deadline, and eventually scamming a ton of users out of their pre-order funds, the company faced legal trouble and had to shut down. To this day, pre-order funds is still being returned to customers, albeit in a rather fishy way by the looks of things.
BFL Refund : Bitcoin, USD or…. Cloud hashing???
As you can probably imagine by now, a lot of people are still waiting to see (part of) their funds being returned to them after placing a pre-order with Butterfly Labs. After many delays, partially due to stalling from Butterfly Labs’ end as well as the legal battle they are currently going through, it seems like they managed to come with a “creative workaround” to settle these refunds.
Eligible refunds customers will receive a letter in the mail over the next few days/weeks, informing them of the refund options they can choose from. In fact, there are three options to choose from, which might seem generous at first, but don’t be mistaken. It looks like this is a very odd choice if you think about it.
A refund in Bitcoin (valued at the amount you are owed)
A refund in USD (valued at the amount you are owed)
If you fail to select either BTC or USD, you will receive cloud hashing (valued at the amount you are owed)
Some of you may be wondering where these cloud hashing contracts are coming from. Well, they are actually available on the Butterfly Labs website right now; as you can see here. All orders will be activated within 24-48 hours after receiving the payment, according to that webpage, and there is only a limited capacity available.
Users , assuming there is anyone desperate enough to try this obvious scheme, can choose between a 500 GH/s (US$1,495) , a 2,500 GH/s (US$6,875) and a 5,000 GH/s (US$9,950) package, each of which will run for 12 months in total. There will also be NO REFUNDS once a contract has been activated, so do your own research before even considering to buy a BFL cloud mining contract.
However, the most pressing question is : is this actually legal? The options for BTC and USD are standard, and it is good to see both options present for affected customers. However, that third option seems so out of place, and I highly doubt it is even legal to offer something else, especially when you try to pin it on your customer for “failing to make a choice”. Just refund people in USD or BTC and be done with it.