“BFL’s offices in Leawood, Kansas (just outside Kansas City) were ‘raided’ by the United States Marshals Service (USMS) last Friday. Helen Wong, an FTC attorney, told Ars that all three principals had been served with the lawsuit and that no arrests were made. The USMS, she said, was present to ‘keep the peace.’ For the past year, BFL insisted that mere manufacturing delays were to blame for the company’s woes. However, suspicion of active fraud never died down—and only worsened after it came to light that Butterfly Labs’ largest shareholder, Sonny Vleisides, had violated the terms of his probation from a previous lottery scam case.”
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