In late July, L$ 3.2 million was fraudulently taken from the World Stock Exchange by people involved with Mystik Designs (MDS). That is around $12,000 in U.S. currency. Mystik Boucher, and the chairman of her board, Thurston Hallard both had their accounts suspended and the remaining assets held. Boucher was later cleared as Thurston Hallard and Mindo Pinion, an account which many believe was controlled by the person that controlled Thurston Hallard’s account both disappeared.

As a result of the fraud, Mystik decided to move her company from the World Stock Exchange, and set up business over on the Virtual Stock Exchange, (VSTEX). In the process, she merged with Bob Perry’s Store (BOB) and SL Zero (SLZ), both controlled by Bob Perry.

A month later, rumors circulated that Mystik Boucher had disappeared. Mystik responded with a blog post on Your2ndPlace, where Bob Perry also posts starting off by stating, “Bob's post on Vstex (had anyone researched this) was a blatant lie.” That doesn’t look like a good sign for the heads of the merged company working together.

Sure enough, two days ago, VSTEX announced a halt on trading of SLC, the joint venture between Bob Perry and Mystik Boucher. It includes a message from Bob saying,

After contacting Mystik in the last 2 days, I have ultimately discovered she will not work with me. I was cursed at and told she was never given any work.
I now believe that we will no longer be able to work together.

I would like to tell you that I am now resigning and leaving Mystik in charge. My shares can be removed by vstex if felt necessary but I no longer feel like I am working with a responsible partner. I am leaving her in charge of the company.

It took a month for Bob to figure that out? So now, SLC trading is halted. VSTEX did the right thing to halt trading and to try and figure out what is going on. Incidents like this are bound to continue in Second Life trading. Running a small business is hard enough. Running it virtually brings in all kinds of additional complexity. The real test will be to see how well Mystik Boucher and the Virtual Stock Exchange work together to salvage this.

It appears as if VSTEX has been working hard behind the scenes to make find ways for SLC to continue operations. Initial indications are that they have worked with Mystik to resolve this and that trading in SLC will resume soon with the shares that had been Bob’s being transferred to Mystik.

VSTEX is also rumored to be setting up new rules for the listing of companies, and hopefully for how they handle the halting and resumption of trading. These rules could require different types of markets for different types of companies, larger, well established and well regulated companies, less closely regulated startup companies, or perhaps, in the future, companies that don’t operate primarily in Second Life.

Trading in Second Life continues to be a fascinating area for anyone interested in the emergence of trading practices in any community. The actions of VSTEX and Mystik Boucher provide continued hope that the markets will evolve to be an even more valued part of the Second Life environment.

Update:

Mystik has just posted a message over on the VSTEX site concerning issues about the assets and liabilities of SLC and asking for trading to be halted.

2007-10-18
The future of SLC with SLZ and BOB shareholders.

RE: Bob Perry's Debts

After much discussion with associates involved in Mystik Designs prior to the merger of the three companies, it is with much regret that we as a company will NOT be coving any debts owed by Bob Perry prior to the merger.

With that being said- the only viable way for us to stay floating at this point- Bob Perry needs to turn over all SLZ and BOB assets to the Virtual Stock Exchange or another neutral party for liquidation and distribution to his investors prior to this merger.

We know that Bob Perry has in possession Private Islands as well as rights to software that can be resold to pay as much as possible to his investors.

Furthermore, I have requested with VSTEX staff Halt the trading of SLC shares.

I have begun the process of liquidating MDS assets to pay as much as we can to to the shareholders going into this merger. Prior to Bob Perry leaving I had spoken to VSTEX staff and openly admitted that if there was a breakup between companies that MDS would not be able to operate and would bankrupt.

Thank you all for your patience during this trying time and good luck with any future investments or ventures you may run into in Second Life.

Regards,

Shania / Mystik