The Department of Commerce has issued a Cease and Desist using its new powers under the Financial Institutions Enforcement Act against the operator of Northwind Market Portal. The Reveille Times spoke to Compliance Officer Fickogames, who told us:
“Fluffy attempted to register an Echo Security Exchange in Redmont. The consensus of those handling the ticket was [a] very simple “no way”. [the] reasoning is multipronged [sic]: 1. Echo securities are very unstable, 2. NYSE tends upwards; thus the echo security companies are often just Ponzi schemes. At some point, if everyone withdrew their deposits, the company would go insolvent, and the government would probably be on the hook to return all deposits people lost, 3. His portal is deeply flawed. I personally observed a 2-minute delay in stock price updates, during which time it’s incredibly easy to develop a bot to raid the entire exchange of every cent it has, because you are effectively trading securities already knowing how your trade will end up. You can see how easy it would be to profit from this. Fluffy was told not to do it, and his application was rejected. He did it regardless and launched the portal, despite being warned against it, not just from a legal but also from an economic perspective.
We have received reports of the portal’s existance; one person provided direct proof of it. I then tried doing it myself, depositing few hundred Redmont dollars, which I was able to use to buy one echo share of Amazon Inc., which I have then sold. I mean I lost 1$ but it was enough proof for us to be confident in our ability to issue the Cease and Desist Order.
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The Northwind Market Portal echoes the days of Vanguard Market Access and the financial crisis that followed. We took this comparison to the operator of the exchange, fluffywaafelz, who said:
“My comment is simple and straightforward: The DoC has unlawfully reached out of the bounds designated to them by law. I have already responded to them with various demands. They have no clue what they’re messing with.”
When asked for further context as to what the Department was messing with, he clarified that his right to be “secure against unreasonable search and seizure” was infringed.
A source familiar with the matter alleges that Fluffy “knows what he’s doing is illegal and was warned… in response to this, he opened a ticket and threatened to sue.”
A screenshot was then provided in which fluffywaafelz told the Government:
“You guys realize you have 0 jurisdiction over northwind market portal. Your creating a bigger issue for yourselves. I’m gonna sue the shit out of you guys and win lol [sic].”
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