UNITED STATES DISTRICT COURT WESTERN DISTRICT OF MISSOURI WESTERN DIVISION

CASE NO. 4:14-cv-00815-BCW

FEDERAL TRADE COMMISSION, Plaintiff, V

BF LABS, INC., et al.

Defendants.

PLAINTIFF’S MOTION TO PRESENT LIVE TESTIMONY AT PRELIMINARY INJUNCTION HEARING AND SUGGESTIONS IN SUPPORT

Pursuant to Section XXIV.B of the Stipulated Interim Order [DE # 54], Plaintiff Federal Trade Commission respectfully requests leave to present live testimony at the preliminary injunction hearing scheduled for November 24, 2014. If the Court allows, the FTC may call the following witnesses:

Anthony Fast

Anthony Fast 608 Saratoga Place Lawrence, KS 66046 The Court previously granted the FTC’s motion to present Mr. Fast’s testimony and requests that it do so again. Mr. Fast worked at Butterfly Labs from February to July 2013. He served as its marketing manager and now works as a bitcoin consultant. In that capacity, Mr. Fast has

conducted research and analysis regarding the bitcoin industry. He graduated cum laude from

Washburn University, served as a computer and network administrator in the U.S. Army, and has

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held various management positions throughout his career. He will describe his role at the company and its management structure. Additionally, Mr. Fast would provide testimony on Butterfly Labs’ marketing strategy and advertisements, its refund policy, production practices and schedule, and its bitcoin mining operations. (Anticipated duration of testimony: 1 hour and 30 minutes on direct).

Mr. Fast’s testimony would serve several purposes. First, it would rebut the testimony of certain of witnesses that Butterfly Labs proposed to call for the originally scheduled hearing and would represent a perspective different from that Defendant Drake and Jeff Ownby, both of whom still work for Butterfly Labs and therefore possess pecuniary interest in its continued operation. Further, in its motion to present live testimony [DE # 15], and its opposition papers [DE # 14], Butterfly Labs portrays itself as a well-intentioned start-up company and attributes the challenged conduct to growing pains. Mr. Fast’s testimony would provide a counterpoint to that portrayal. For these reasons, Mr. Fast’s testimony would be helpful to this Court in determining whether a preliminary injunction should issue.

Arvind Narayanan Arvind Narayanan, Ph.D.

Princeton University

Princeton, NJ 08544 Dr. Narayanan holds a Ph.D. in computer science and serves as an Assistant Professor in the Computer Science Department at Princeton University, as an affiliated faculty member of the Center for Information Technology Policy at Princeton, and as an affiliate scholar at Stanford Law School’s Center for Internet and Society. He earned his doctorate from the University of

Texas, Austin. In addition to his work in information privacy and security, Dr. Narayanan

studies the security and stability of Bitcoin and other cryptocurrencies. He has published several

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papers on Bitcoin and cryptocurrencies and in July 2014, received a $500,000 grant from the National Science Foundation to study them. (Anticipated duration of testimony: 2.5 hours on direct).

Dr. Narayanan’s testimony would serve several functions. It would provide the Court with a scientific perspective on Bitcoin protocol and how the Bitcoin network functions, the Bitcoin mining process, and Bitcoin mining hardware. Among other things, his testimony could shed further light on the effects of delays in delivery of mining hardware on its value and efficacy, including the hardware at issue in this case.

The FTC may later seek leave to modify the scope or topics of testimony based upon the

witnesses identified by the Defendants.

Respectfully submitted,

JONATHAN E. NUECHTERLEIN General Counsel

Dated: November 7, 2014 /s/ Leah Frazier Helen Wong, DC Bar # 997800 Teresa N. Kosmidis, NY Bar# 4533824 Leah Frazier, DC Bar# 492540 Federal Trade Commission 600 Pennsylvania Ave., N.W. Mail Stop CC-10232 Washington, D.C. 20580 202-326-3779 (Wong) 202-326-3216 (Kosmidis) 202-326-2187 (Frazier) Facsimile: 202-326-3768 hwong @ftc.gov tkosmidis @ ftc.gov Ifrazier @ftc.gov

TAMMY DICKINSON

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United States Attorney

Dated: November 7, 2014 /s/ Charles M. Thomas Charles M. Thomas, MO Bar #28522 Assistant United States Attorney Charles Evans Whittaker Courthouse 400 East Ninth Street, Room 5510 Kansas City, MO 64106 Telephone: (816) 426-3130 Facsimile: (816) 426-3165 E-mail: charles.thomas @usdoj.gov Attorneys for Plaintiff FEDERAL TRADE COMMISSION

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CERTIFICATE OF SERVICE

The undersigned hereby certifies that on the 7th day of November 2014, a true and correct copy of the foregoing was filed electronically with the United States District Court for the Western District of Missouri using the CM/ECF system, which sent notification to all parties of interest participating in the CM/ECF system.

/s/Leah Frazier

Attorney for FTC

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