This is an archived article that was published on sltrib.com in 2014, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
Leawood, Kan. • The Federal Trade Commission alleges in a lawsuit that a Kansas bitcoin company bilked more than 20,000 customers out of up to $50 million.
The FTC alleges that the Leawood-based company, Butterfly Labs, told consumers that computers could generate bitcoins but didn't deliver the computers or sent worthless equipment.
The Kansas City Star reports (http://bit.ly/1B6tyvB ) that the FTC said Tuesday the federal court in Kansas City issued a temporary restraining order that shutdown the business.
The company said in a statement that it would fight the federal action and accused the government of wanting to shut down the company.
Bitcoins are a way to buy and sell some goods and services instead of using dollars or other government money.