1) Buttercoin does not appear to be a registered money transmitter. They've known about this requirement for months, they've had the financial capabilities to do this for months...and yet they haven't bothered so far. See http://www.fincen.gov/financial_institutions/msb/msbstatesel....
2) They started off as open source, took a bunch of free code, and then ended the open source aspects of the project.
3) They took a substantial amount of BTC donations (even more substantial now with the higher F/X rate) and never returned those donations when the project pivoted from an open source software project to a V/C funded business.
One of these red flags is bad enough, but 3 together is a big, red, flashing "STAY AWAY".
They clearly don't have the professionalism or the wherewithal to handle the basic foundational aspects of their professed industry. I recommend staying away from them before they become the next MtGox.
1) Buttercoin does not appear to be a registered money transmitter. They've known about this requirement for months, they've had the financial capabilities to do this for months...and yet they haven't bothered so far. See http://www.fincen.gov/financial_institutions/msb/msbstatesel....
2) They started off as open source, took a bunch of free code, and then ended the open source aspects of the project.
3) They took a substantial amount of BTC donations (even more substantial now with the higher F/X rate) and never returned those donations when the project pivoted from an open source software project to a V/C funded business.
One of these red flags is bad enough, but 3 together is a big, red, flashing "STAY AWAY".
They clearly don't have the professionalism or the wherewithal to handle the basic foundational aspects of their professed industry. I recommend staying away from them before they become the next MtGox.