By Annabis Moody, Financial Editor
SLReports.net

Investors in Second Life are getting fed up with reports of seemingly unethical business practices, and they are starting to protest loudly.

A Vstex group notice released Friday stated "Jasper Tizzy is leaving Second Life and is selling out his business. Trading on AVC, CGI and KFM is halted until the transfer to the new owner is completed." This sent some investors scrambling to find out what had happened, resulting in an informal protest being staged at Vstex corporate headquarters.

"I'm just sick of unethical business in SL," said Design Student, while fellow protester Blazed Miles nodded in agreement.

"We are all investing into these companies for them to succeed and in return hopefully make us some extra money--but up and leaving is just wrong," said Student. "That is why I'm pissed…because Jasper is just up and leaving and all the investors are now going to be out a ton."

The question remains unanswered why Tizzy decided to leave SL and give up his vast holdings which included The Bank, AVC, CGI and KFM.

Miles said he personally lost only L$10,000 but he knows many people "who lost tons."

"I am still hoping things work out with a corporate restructuring to a new owner, however I am watching the market closely," said Broek.

Broek said he feels it is important for SL investors to send a message that they demand more accountability in financial institutions.

Investors in Tizzy's empire are unsure what will happen to the value of their stocks or the future of these companies, should someone else purchase the ventures.

PatrickJ Ah was thought to be considering purchasing Tizzy's investments. Ah said he still had many questions and a main goal was to salvage CGI, of which he owns a 50 percent interest.

Miles said the actions of Tizzy made VSTEX look bad.

The official word from Tobia Forcella of Vstex is that "We are waiting to meet with Tizzy and Ah."

Student said Tizzy has a long history in various SL stock markets moving around quite a bit, seemingly because of little regulation and the splintered nature of the SL stock market.

"Well Japser went from WSE - ISE - VSTEX, moving from market to market with impunity or seemingly very few questions being asked," said Student.

Student said he thinks Tizzy should have been fully investigated by someone.

"I think there should be a set system that all companies should have to go through, certain criteria involved with setting up a venture where public trust is involved," said Student.

He suggested the community should vote on the criteria and establish guidelines and monitoring systems to restore the ethics of SL business.

"Well I think that the community should vote," said Student. "This exchange is owned by the community of shareholders, so we all should have a say."

When something of this nature happens, the damage to public trust is hard to quantify-the possible loss which results goes far beyond pure numbers.

"Second Life banks have proven to be highly risky, many investors fall into the bait-and-switch trap of the overhyped and articial high interest rates promises of upwards to 100% interest rate per year," said Skyranger Hammerer, Hedgefund Manager/owner.

Hammerer feels more realistic projections are the way to a broader, safer and more regulated institutional market that is based on real-life principles.

Investors will have to wait and see how this turns out, but one thing seems certain-SL investors are demanding greater transparency and controls in financial institutions-and they will back up their convictions with linden--or the lack of it.