Slashdot Mirror
Court Order: Butterfly Labs Bitcoins To Be Sold
MrBingoBoingo writes In a new development in the case against Butterfly Labs, the court overseeing the case has ordered bitcoins held by Butterfly Labs to be turned over to the court-appointed temporary receiver. The order also gives the receiver authorization to convert the bitcoins "to cash on a systematic and reasoned basis." The justification for this measure is at least to ostensibly create reserves with which refunds for Butterfly Labs' customers may be paid.
Recognizing the value of an asset (e.g. stocks, bonds, paintings, sculptures and etc.) doesn't confer legitimacy as a currency.
A Ponzi scheme is when you use money from later investors to pay earlier ones to create an illusion of a profitable business where none exists. For a hardware vendor to pull a Ponzi scheme on their customers would require them to conduct some weird "send us a computer, we'll send you two later" stunt. Not delivering paid-for hardware is a simply fraud, not a Ponzi scheme.
Seriously, stop calling every shady business practice a Ponzi scheme.
Forget magic. Any technology distinguishable from divine power is insufficiently advanced.