There has been much controversy and several common misperceptions about BFL have taken on a life of their own. Now that the FTC case has come to a close, these misperceptions have been thoroughly investigated and we can finally address them.

Misperception:

BFL never shipped a product.

Statement: BFL successfully engineered, manufactured and shipped over 50,000 bitcoin hashing machines through five product generations over four years to thousands of customers.

Misperception:

BFL did not give refunds. 

Statement: BFL voluntarily paid over $6 million in refunds in 2013 during our 65nm production. BFL paid over $14 million in refunds in 2014. Projections indicated all order deliveries would have been fulfilled and refunds paid in the ordinary course of business before the FTC action froze operations in September 2014. BFL was also required to pay the court-appointed receiver approximately $1 million that could have been available for refunds before the receiver was dismissed and the preliminary injunction was denied.

Misperception:

BFL was over a year late delivering product.

Statement: There were some unexpected delays experienced and customers were kept informed along the way. Despite the terms that all sales were final, at times when it was evident original timelines would shift, consumers were offered the option to cancel orders and request a refund or keep and upgrade their order.

Also pre-orders were taken many months ahead of expected delivery date and some consumers included the known wait time in complaints about later than originally expected shipments. Aside from customer orders caught in the FTC action the majority of customer orders were delivered well under a year. For cutting edge technology these delays were not outside of the norm. Knowing this, our purchase terms required customers to acknowledge the pre-order nature of the agreement they entered. 

Misperception:

BFL mined on customers' equipment and that is why the company was late shipping.

Statement: BFL tested equipment on the live network generally from less than two hours to two days in the event units were in production over a weekend. This insured that customers received reliable and working equipment avoiding unnecessary down time. Customer shipments were not delayed for burn testing.

Misperception:

BFL promised profitability of our miners.

Statement: We were adamant about not promising profitability. BFL is, and always was, only a hardware company. We have never been in the profitability business. The FTC focused its case on one example where we posted a LINK on our Facebook page to a non-BFL website that contained a bitcoin mining calculator. This was merely a social sharing moment that many companies engage in on a regular basis. BFL was able to provide records to the FTC of over 400 million advertising impressions and demonstrated to the FTC and the Court that our standard advertisements only mentioned hashing power and price, not profitability.