February 18, 2016 / 4:27 PM / 2 years ago

Bitcoin mining company settles FTC charges over deceiving customers

WASHINGTON (Reuters) - Bitcoin mining operation Butterfly Labs and two of its top employees have agreed to settle charges that they deceived customers, the U.S. Federal Trade Commission said on Thursday.

A Bitcoin ATM is seen inside a bookstore in Acharnai in northern Athens, Greece June 30, 2015. REUTERS/Dimitris Michalakis

Butterfly Labs, its vice president of product development Sonny Vleisides and general manager Darla Drake settled charges that they deceived thousands of customers about the quality of their machines, designed to mine Bitcoin virtual currency, and that they unfairly kept consumers’ payments despite failing to deliver the machines as promised.

Reporting by Megan Cassella

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