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    Author Topic: Re: Butterfly Labs CEO 25 Million USD Mail Fraud — A Concise Summary of Evidence  (Read 146797 times)
    MPOE-PR
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    September 22, 2012, 12:11:12 AM
    Last edit: September 22, 2012, 12:32:15 AM by MPOE-PR
     #221

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    Yeah, I'm having a hard time writing them off as a scam, even in the face of previous grievous altercations.

    For most legitimate businesses this usually works the other way around, customers have too easy a time writing them off even for no good reason.

    Quote
    I tried finding information about the london conf, pictures, video, anything... and failed.
    Would have been nice to see some lousy cell phone vid of the jalapeno... but that kind of stuff is very hard to do for non-techy folks like bitcoin users.

    It's still not clear anyone actually involved in bitcoin was actually there.

    Quote
    whoa whoa whoa, back the forum train up a bit here.  What the fuck are any of you in the last 1.5 pages talking about?!  There was some conference and he was there in person?  They showed up with an ASIC miner and auctioned it off?!  They just literally said 2 days ago that they aren't finished and they don't have a single working ASIC miner in their company's hands.  They assured everyone of this.  So they showed up at some alleged conference that someone posted about out on nowhere and not 1 single person took a photo? Not one single Bitcoin Talk forum member who attended this huge, elaborate, epic event owns a cell phone with a camera or thought it was worth snapping a photo?  Do you fake ass forum members posting all this pretend bullshit really believe anyone to believe it?  Mods, get out the ban hammer hard.  That or some of you better start explaining

    WHAT

    THE

    FUCK

    Are any of you talking(/lying?) about?!?!?!

    I lolled.

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    ...And yes, there was a conference, a few hundred people attended including some top dev's and pool operators...

    Were they real people or just virtual sock puppets?


    They were ven developers.

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    Posting this here, as the thread was voted into invisibility onr/bitcoin:

    Quote from: pirateatbfl
    It has been demonstrated that BFL Single is a pair of Altera EP3SL150F780 chips.

    This chip is no longer manufactured, and the official price from digikey, Altera's authorized distributor, is $2,184.99 per chip.

    That's almost $4,400 per board just for the chips.

    Obviously since the single sells for $600 they are not paying anything close to full price for these chips. But since they are no longer manufactured there is a finite supply, and with the huge demand they surely can see that the End Is Near for the Altera-based product line.

    So now it fits together: they aren't ruining a good thing -- the good thing is over whether they like it or not.

    They have run out of cheap chips. Without the insane more-than-5x cost advantage over the competition they can't compete anymore, so they pretty much have to close up shop.

    But wait.

    If you have to close up shop anyways, why not go out with a bang? Especially when you have an experienced fraudster running the company? The company is toast without the cheap chips anyways, so why not run off with a pile of preorder cash? Better yet, tell the people you sold product to that they can send the boards back as part of a "trade in". Remember, there are no more cheap chips, so the supply of these boards is about to get cut off. And mining boards turn electricity into anonymous, untraceable cash, so running off with them is about as safe as running off with BTC.

    You may or may not believe their ASIC announcement is a scam, but either way the claim that "oh they have so much to lose by scamming people why would they do that" doesn't hold water. Their existing product line has a fixed lifespan -- ASIC or not.

    http://www.reddit.com/r/Bitcoin/comments/1084b1/why_would_bfl_turn_a_good_thing_into_a_scam/

    So wait, they never made FPGAs?

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