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 on Thursday allowed Leawood-based Butterfly Labs Inc. to reopen for limited operations. A federal receiver was given temporary control of the company on Sept. 18.
The Federal Trade Commission alleges the company defrauded thousands of customers out of between $20 million and $50 million by not delivering working equipment to allow them to receive bitcoins. Butterfly has denied all the allegations.
The Kansas City Star reports that Butterfly officials said the judge’s order is a “step in the right direction” but it will continue to address what it called several inaccuracies that have been made against the company.