Bitcoin operator allowed to resume some business

Published October 3, 2014 2:58pm ET



LEAWOOD, Kan. (AP) — A Kansas bitcoin company that was shut down after being sued by the federal government will be allowed to resume some of its business, a federal judge has ruled.

U.S. District Brian C. Wimes on Thursday allowed Leawood-based Butterfly Labs Inc. to reopen for limited operations. Its assets were frozen and a federal receiver was given temporary control of the company on Sept. 18 after the Federal Trade Commission sued, alleging that Butterfly defrauded up to 20,000 customers out of between $20 million and $50 million, The Kansas City Star reported (http://bit.ly/1viqMRR ).

Already a print subscriber? Click here to login/register your account

Trusted reporting.Unlimited access.

Subscribe for full access to Washington Examiner coverage, expert political analysis, and subscriber-only journalism.

Get Unlimited Access

Already a member? Log in

Cancel anytime.