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Kansas-based Bitcoin equipment seller to reopen

By Associated Press - | Dec 16, 2014

? A Kansas bitcoin company that was shut down after being sued by the federal government will be allowed to reopen.

A federal judge has ruled that Overland Park-based Butterfly Labs can resume operations under several restrictions. The company was closed in September after the Federal Trade Commission charged it had taken millions of dollars for computer equipment it didn’t deliver. It was later allowed to resume limited operations under a court-appointed receiver.

The Kansas City Star reports U.S. District Judge Brian Wimes last week rejected the government’s request for a preliminary injunction that would have kept Butterfly Labs under the receiver’s control while the original complaint was pursued. Wimes said the FTC has not shown that it was likely to succeed on the original charges.