FTC suit against Butterfly Labs survives dismissal

A Federal Trade Commission lawsuit against Leawood Bitcoin company Butterfly Labs has survived a major hurdle. A federal judge denied the company's motion to have the case dismissed. The FTC brought the case in September alleging the company, which makes machines allowing consumers to mine Bitcoins, was defrauding its customers. The suit claims that Butterfly charged consumers for its product and then failed to ship the machines for months. By the time customers did get their product, they say,…