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New CTO at CapEx

Written by Xavier Mohr

Wednesday, 27 February 2008

The SL Capital Exchange has selected Chango Kanto as its new Chief Technology Officer, according to an announcement at the exchange website last night. In compensation for his efforts, Kanto has received 19,000,000 shares of the exchange – roughly 25% ownership of the organization.

The move comes in response to the recent resignation of AVIX developer and longtime CapEx figurehead Unoti Quonset, who resigned in wake of the Linden Lab banking ban on January 15th. In his resignation, Quonset cited a desire for his company to "focus on new products and services."

Per an announcement from Arbitrage Wise:

SL Capital Exchange Welcomes its new CTO
On behalf of the SL Capital Exchange, I would like to welcome Chango Kanto as our new CTO. Chango's role will be to enhance the SLCX platform and develop additional features that will add long-term value to the the company. In joining the SLCX team, Chango will become an equity partner of SLCX, and will receive 25% of the business, to be issued from my personal portfolio. In doing so, we hope to add value to SLCX at no additional costs to our shareholders. We have listed Chango's skills and accomplishments below. Once again, we hope that you will join us in welcoming Chango Kanto to the SLCapex family.
-Arbitrage Wise

---------------------

SUMMARY
More than 12 years experience in the industry. 8+ years in US startups in key positions.
Note: Currently I am located in Melbourne, Australia and remotely consulting for several US startups.
COMPUTER SKILLS
Specialization
•Languages: Microsoft Visual C++® and C, Familiar with Objective C, C#, Java
•Windows Driver Development, Filesystem Development
•Linux Kernel Internals
•TCP/IP Protocol Stack Internals
Software
•Scripting and Web Programming: Javascript, PHP, Perl, Python, Emacs, Lisp, Expect, Scheme
•Technologies: AJAX, DHTML, MySQL
•Platforms: Windows, Linux, FreeBSD
•Others: VMWare, Flash, XML/XSLT, Docbook
Operating Systems
•Windows NT, 95, 2000, 2003, XP
•Linux RedHat, Gentoo, SuSe, and other distros
•QNX Realtime OS
EXPERIENCE
CO-FOUNDER AND C.T.O, WINTUTIS INC
2006-Present
Stealthmode Startup based in Seattle, U.S.A
•Primary responsibilities include Research and Development of cutting edge security products
•Developed fully functional prototype and alpha version from scratch in record time (6 months)
•Developed research material including white papers for promoting the company and technology to
potential investors and partners.
•Created and managed an extremely efficient team of outsourced engineers, suitable for the needs
of this startup.
•Applied for a Patent with the U.S Patent Office
FOUNDER AND C.E.O, KUDANG TECHNOLOGIES, P/L
2004-Present
Consultancy Firm based in Melbourne, Australia
•I started this consultancy firm after moving to Australia to leverage my wide area of expertise to
become financially independent while working on cutting edge technologies.
•Client base includes many US startups that I previously worked with, and new companies are
being added regularly.
•Technologies includes internet security, network storage, embedded devices, TCP/IP, web
technologies, etc.
EMBEDDED SYSTEMS ARCHITECT, PHOTURIS INC.
2000-2003
Next generation Optical DWDM Router company, now acquired by Mahi Networks Inc.
•Micro-kernel based remote Filesystem, on QNX RTOS.
•Control Plane Redundancy Tech Lead. Designed and delivered the redundant control plane
architecture for the DWDM router.
•Embedded Real-Time TCP/IP Stack. This research project involved porting the TCP/IP stack from
OpenBSD Kernel into user-space on QNX. Added support for prioritised packet processing and
bounded per-hop latency as per our protection switching requirements.
•Optimised the network performance and fine-tuned it for our real-time needs.
•Virtual Network Emulation on QNX. I built this tool which became invaluable for protocol
development, troubleshooting and is being used extensive by other engineers since it allows
testing without the actual hardware.
TECH LEAD, ERICSSON IP INFRASTRUCTURE
Torrent Networking Inc. was a high-speed router startup eventually acquired by Ericsson.
•ASIC System Software Tech Lead (Team of 10): Developed protocol firmware on our ASIC network
processor with a built-in reliability layer. Developed a set of diagnostic tools to greatly increase
the ease of development on the ASIC board.
•Next Generation Research: Performed detailed analysis of off-the-shelf network processors and
CAMs to decide whether the company should invest in in-house hardware. My recommendations
lead to the development of ASIC network processor which exceeded the company goals.
•OC12 POS Simulation: Created a simulation environment to simulate various striping algorithms to
stripe OC12 traffic on our fabric with OC3 switching elements. This was done for the OC12 POS
team. The simulation environment was based on existing thread library with a scripting interface
in Python, using SWIG to generate the C-Bindings.
•Kernel Scalability: Did an exhaustive study of the FreeBSD 2.2.8 kernel to determine scalability
issues for scaling above 10,000 interfaces. Optimised and fine tuned various components of the
kernel. including the interface list maintenance, interface lookup based on name and IP address,
data input and output path to meet our scalability requirements.
R&D Engineer, Novell IDC
Novell IDC is a research center of Novell, based in Bangalore.
•QoS for disk subsystem: Developed a quality of service for the disk subsystem on Novell NetWare
(using earliest deadline scheduling), supporting both realtime and non-realtime requests.
•Multimedia Object Cache Filesystem: Developed an object filesystem specifically optimized for
multimedia requests, also supporting generalized-interval caching, and load balancing through
hierarchical segment replication, and providing QoS at disk and SCSI-controller level.
•Storage Management Engine: Designed and developed a storage engine, scheduler and storage
management console, which are part of the BACKUP for NetWare 5.x, following the industry
standard processes and product lifecycles.
OPEN SOURCE DEVELOPMENT
User Mode Linux for Win32
http://umlwin32.sourceforge.net/
•This is a port of linux kernel as a user mode process on windows platform. It provides a true linux
environment without an emulation layer and can execute native linux binaries within a virtual
machine. Under this virtual machine it is possible to execute native unmodified linux binaries as
windows processes by redirecting their syscall traps to kernel calls.
•This project provided a lot of technical challenges most of which has been overcome. Previous
other attempts at this port were abandoned due to these challenges.
Linux FireWire DVD Driver Enhancement
http://returntonature.com/pipermail/linux-sony/2002-April/000574.html
Enhanced the Linux IEEE Firewire driver (sbp2.o) to support the Sony VAIO R505DL series. This
was a much awaited feature, which enabled the use of Sony firewire docking station with Linux.
UMLGDB
http://user-mode-linux.sourceforge.net/debugging.html
This utility automates the process of attaching and debugging kernel loadable modules under user
mode linux using GDB. It is being used primarily by Linux device driver developers who debug their
drivers under user mode linux.
Linux Kernel for iPod mp3 player
http://ipodlinux.sourceforge.net/ http://guipod.sourceforge.net/
Participated in porting Linux kernel onto Apple's iPod MP3 player which is a on-going project involving many open source developers.
KoolClip – Desktop Productivity App for Mac OS X
http://kudang.com/koolclip/welcome.html
This is a much acclaimed multi clipboard app that has generated rave reviews by the Mac users.
EDUCATION
Bachelors in Computer Science and Engineering
1989
Indian Institute of Technology (I.I.T) Madras, India
•4 Year B.S. course specializing in Operating Systems, Network Protocols and Computational
Mathematics.
•Ranked 35th amongst more than 100,000 students in the prestigious JEE (Joint Entrance
Examination) in India.
PUBLICATIONS
"Genetic Algorithm and its application for Scheduling jobs on
parallel machines"
Cyberia ‘94
Organized by IEEE students chapter, SJC Engineering college, Mysore. Was placed at first position.
(July 1994)
U.S. PATENTS
6,233,589 : Method and system for reflecting differences between two files.
20070250927: Application protection (Patent pending)

SL Reports is pleased to welcome Kanto on behalf of the Wise Metaverse, LLC family.

Stay tuned to SLReports.net for more information.

Comments

RSS

zoggo - re:

|2008-02-28 09:45:14

Disgusted 2 wrote:

Could someone explain me why Kantoreceived about 18,000 REAL
USD ???????

- He received those for free ?
- I
mean, what for ?
..He received those for free ?
- A
monthly salary was not enough ?

- Disqusted also by the
genius plan of Arb which realised how to remain with half of
depositors money - those 200,000 real usd ( what did you
bought with those 100,000 USD Arb ?..because after your
genius ideea to convert to shares and sell the first moment
SLW trades begun --> when no buyers were in the system ,
it was VERY EASY to make price drop to half so
that depositors losed half and you gained half,
considering now SLW price is at 0.50..)

It depends on all who is selling at thesse prices. Better be
buying (more) now and have trust in the future. why sell with
a loss. A loss is a loss, as soon as you decide
to sell
Secondlife is a new economy, look at the history
of our economy.
People were scammed but also people
get rich. Be smart and do not forget to do your due dilligence

Disgusted 2

|2008-02-28 06:49:40

Could someone explain me why Kantoreceived about 18,000 REAL USD ???????

- He
received those for free ?
- I mean, what for ?
..He received those for free
?
- A monthly salary was not enough ?

- Disqusted also by the genius plan of
Arb which realised how to remain with half of depositors money - those 200,000
real usd ( what did you bought with those 100,000 USD Arb ?..because after your
genius ideea to convert to shares and sell the first moment SLW trades begun -->
when no buyers were in the system , it was VERY EASY to make price drop to half
so that depositors losed half and you gained half, considering now SLW price is
at 0.50..)

Disgusted 2 - continued

|2008-02-28 06:47:56

quote :
"Kanto has received 19,000,000 shares of the
exchange

Disgusted 2 - continued here

|2008-02-28 06:46:58

quote :
"Kanto has received 19,000,000 shares of the exchange

Disgusted 2 - why this bs ?

|2008-02-28 06:45:55

quote :
"Kanto has received 19,000,000 shares of the exchange

Xavier Mohr

|2008-02-27 17:04:46

The other thing to point out here is that the reality argument is exclusively
based on the actions of one private company.

Sure you can CONVERT the L$
product now, but if Linden Lab goes all Enron on us and ends up bankrupt... is
your argument still valid?

Xavier Mohr

|2008-02-27 17:21:16

Quote:

What bothers me is that no one who
runs these "exchanges", "companies", "ma
rkets", "banks", or anything similar seems to have a
clue about how this all works.

Well I would have agree with you on that, but that is beside
the point.

Unfortunately, though, if you are trading
Lindens in-world for something of no guaranteed value, such
as stock in a fictious company... or prim furniture
or clothing... or depositing it to get a return for
more Lindens... that doesn't exactly qualify as
anything tangible.

Remember. .. real currencies are backed by
gold, silver, or legislation (bonds which will be repaid by
the government). The L$ is a few bits of data on a server in
some datacenter.

Cashing in and cashing out is an end-user
issue between that person, Linden Lab, and the IRS... and
has nothing to do with that person's customers.

It is also
not possible to use the argument that "it's real because we
can convert it." There is no guaranteed conversion
avenue, and Linden Lab very clearly reserves the right to
cease honoring Linden Dollar conversions at any time.
They are the only issuer and
conversion authority!

Civil suits in SL finance? Maybe.
Criminal complaints or real-world regulation? I don't think
so. You can't apply regulation to something that's
not real.

Arthur Burma has promised to update us if his
law firm accepts or refuses his BNT Financial case. I would
be very interested to see that... I think that would set a lot
of things straight for a lot of people.

This is
a litigation issue, end of story. Someone needs to either
win or lose a lawsuit with regard to the Linden to set precedent
for whether or not in-world transactions will be subject
to regulation. Because... at this point it can be argued
either way.

Milton Friedman - Reading lesson

|2008-02-27 16:32:54

No it does not call the accumualtion of Lindens as "points". What they
are saying is a well established policy and principle in the tax law about
"points" vs "money". Lindens are intentionaly not mentioned by
the IRS because the disitnction is left to reader. IRS does not give
"advice", it is prohibited by law from doing so, and anyone who relies
on statements like these from the IRS that misinterprets them or simply gets a
bad opinion is still subject to the law.

This is amplified 20 fold when
discussing SEC regs. Because it is convertible to US currency and you are
offering a "return on investment", SEC rules apply. All of them. What
bothers me is that no one who runs these "exchanges",
"companies", "markets", "banks", or anything similar
seems to have a clue about how this all works.

Xavier Mohr

|2008-02-27 16:15:42

The same quote also calls in-game Lindens 'points'. The IRS is saying the money
is fake until you cash it out. Which would further go to include intangible
in-world transactions as being fictitious.

Milton Friedman - Reading lessons

|2008-02-27 16:07:17

This quote confirms it:

"Any time someone wins a tangible prize or award,
the value is reportable as taxable income. An accumulation of 'points' would not
result in tax consequences, but redeeming or selling them for money, goods, or
services would."

Since Lindens are convertible to money, IRS rules apply.
Guess what, some logic, SEC rules apply.

Xavier Mohr

|2008-02-27 16:03:48

Quote:

"When asked about the agency's position on collecting
taxes from virtual economies like Second Life, an
IRS spokesman offered the following comment via
e-mail: "Any time someone wins a tangible prize
or award, the value is reportable as taxable income.
An accumulation of 'points' would not result in
tax consequences, but redeeming or selling them for
money, goods, or services would."

Edward Castronova, a professor at Indiana University who
heads the Synthetic Worlds Initiative, a research
center focused on online communities like Second Life
and World of Warcraft, doesn't see taxes
on virtual-only transactions coming anytime soon."

Source, CNN Money
March 9, 2007

The IRS calls in-world
Lindens an "accumulation of 'points'." The immersionists
need to get over their online gaming addiction... it's not
real.<>

Xavier Mohr

|2008-02-27 15:52:04

This is all available through a little research. You think I go
around spinning facts and making this shit up? Please...

Quote:

"Booming virtual economies in online worlds such as Second
Life and World of Warcraft have drawn the attention of a
U.S. congressional committee, which is investigating
how virtual assets and incomes should be taxed."

Source, Reuters
October 15th, 2006

Quote:

"In recent months, the wildly popular world in which I live,
Second Life, has come under scrutiny from both the FBI and the
IRS, the FBI in a futile attempt to control morality, and
the IRS out of pure greed. Both will necessarily end at an
impasse in which neither agency gets what they want for fear of
creating a slippery slope from which they cannot recover."
In order for the FBI or the IRS to gain any foothold on
the issue, the entire controversy will eventually play
out in a court room, most likely before the United
States Supreme Court, where the real argument to be made will
be deciding the definition of currency and just for
giggles."

Source, Associated Content
May 21, 2007

(Initial misedit, please refresh for latest version.)

Milton Friedman - Congress and the IRS

|2008-02-27 15:30:20

This is interesting. You state:

"I have said on a number of occasions,
pull the S.E.C. in here and let's get a real opinion. Most people that argue for
real regulation fail to realize that both Congress and the United States
Internal Revenue Service have declined to recognize Linden Dollars as real
currency, conceivably due to the fact that it is not a value-based barter
currency - it is arbitrarily valued by the makers of an online game, is only
usable in the context of said platform, and only boasts one conversion authority
(the makers themselves) who appropriately deem the Linden a licensed product
with no inherent or guaranteed value"

Congre ss and the IRS have opined
on this? I would love to see an authoritative reliabe cite to verify that
assertion.
Linden dollars are exchangeable into real dollars. Inherently
changing the entire idea you are buying gaming tokens like a video arcade.Didn't
Arb take Lindens from others, convert them to real dollars he held external to
Linden? Then promised a Linden return based on his real world use of real
dollars?

Disgusted

|2008-02-27 14:50:12

Fair enough, thank you for clarifying ownership. Now the question would be, is
it fair that SLW shareholders give up half of their ownership in SLCX and other
SLCX shareholders give up nothing? Does it not make more sense to increase
shares and every shareholder then pays equally. This dilutes shareholder value
but it does it evenly. This is very costly to SLW shareholders and costless for
the SLCX shareholders that are direct owners.

Arbitrage Wise

|SAdministrator |2008-02-27 13:05:54

Sorry for the confusion - a clarification has been posted on the SLCapex Forum:
http://www.slcapex.c om/forums/topic/gene ral/1531

Xavier Mohr

|2008-02-27 11:45:51

Heh, okay well first of all I have not been involved with any of
that since at least November of last year. Might be good for you
to find out you're implicating someone who publicly
calls himself an "ex-Second Life resident,"
don't you think?

My involvement with SL matters extends
only to this website. I logged into the grid for the first
time in over a month yesterday, to liquidate
unused Lindens... and I was only able to do that after
re-installing the client on my computer.

I hold no interest in
SLW, SLCX, or SLR... and haven't for quite some time. The
last time I talked to Arbitrage at any length was at
least two months ago.

Secondly, I knew some anti-finance
fanboys would come along and say that I have no place comparing
two real-life companies to two Second Life companies. All I
can say is you totally missed the context... or
are intentionally spinning it for your own purposes...
not my fault, and not something I see as serious enough
an issue to defend or correct.

I have said on a number
of occasions, pull the S.E.C. in here and let's get a
real opinion. Most people that argue for real regulation fail
to realize that both Congress and the United States Internal
Revenue Service have declined to recognize Linden Dollars as
real currency, conceivably due to the fact that it is not a
value-based barter currency - it is arbitrarily valued by the
makers of an online game, is only usable in the context of
said platform, and only boasts one conversion authority (the
makers themselves) who appropriately deem the Linden
a licensed product with no inherent
or guaranteed value.

Act like an expert source all you
like, and cite unrelated or barely-related precedent all
day long... until your legislators or the courts
decide otherwise, that's not going to
change reality.

Bring real-life regulation to Second Life
for all I care... I can guarantee you there will be
more governmental action against regular users for
tax evasion or money laundering...users who have never
used a bank or exchange... users who did not care what they
were doing with their Lindens when they were doing it - because they were doing it in a virtual world!

If you lost money in some random bank collapse... I am really
sorry. There's no excuse for a Ponzi business model or
a scammer... even in an online game taking advantage
of legal loopholes. But, remember, you threw away real money
to buy Lindens, (hopefully) knowing that it is backed by nothing
of value and you have no protections when using it...
sort-of like the tickets kids bring home from the
mall arcade!

Also, let's take a quick poll... how many of
the investors out there claimed their Second Life holdings
on their taxes this year? Enough said.

Milton Friedman - Where is the beef?

|2008-02-27 10:59:28

I am sure Xavier and Arb have NO INTENTION WHATSOEVER of subjecting themselves
to the same SEC reqirments Apple and Disney adhere to and abide by. If they did
abosulutely none of this is possible. The pipe dream would be exposed, the
fraud, delineated, and some actually intelligence would be driven into the
process.You guys persist in believing you have done something other than create
a new version of an old Ponzi scheme.And, so far, you haven't gotten caught.It
is interesting you compare to Apple and Disney when it suits you and
conveniently ignore the real world rules that, do in fact, apply to you. What
Disgusted is refering to is the real world concept of transferee liablity and
dilution. Well established principles that Disney and Apple whole heartedly
embrace. Why not get on board? Oh, I forgot, because that blows the Ponzi scheme
wide open and in the the "fantasy world" you believe lets you pick and
choose what real world laws, principles, and concepts apply, the whole
"fantasy" house of cards comes down. Good analysis, Disgusted. Any bets
on how long it takes Linden to "ban" this nonsense as well?

Good move
by the way, get a guy from India involved who lives in Australia. Makes it hard
for the real world authorities to get him.

Disgusted

|2008-02-27 10:10:39

Apple owns shares in several companies, that does not mean that Steve Jobs owns
those and he gets the profits. On the flip side, Apple does not own Steve Jobs
personal shares.

Unfortunately there are 2 conflicting statements with
ownership of SLCX. The SLW prospectus implies that SLW owns 50% of SLCX. Arb,
in this press release, contradicts this and declares the shares are his.
Knowing true ownership is very important. If SLW has no assets backing it, then
it is simply a promissary note and probably worthless. If it has ownership in
the companies listed in the prospectus, it is worth quite a bit more.

Xavier Mohr

|2008-02-27 09:14:25

Well the point of view is interesting to say the very least. It's a tactic I'll
have to remember when Disney has a good quarter but Steve Jobs doesn't pass on
his profits us Apple shareholders. ;)

For the record, I'm not in favor of the
increased number of "equity partners" in random SL businesses. I have my
various reasons for that but in general I think it's a pretty bad idea.

My own
opinion aside, though, I really fail to see how one affects the other
considering they are separate companies.

Disgusted

|2008-02-27 08:05:33

SLW can own controlling interest in SLCX, if they own 50% of the shares of SLCX.
Which is implied in the SLW prospectus. Meaning that the owners of SLW owns 50%
of SLCX.

Xavier Mohr

|2008-02-27 07:17:49

No, I am not saying that. And... your math doesn't work because
it somehow assumes material entitlement between shareholders of
the two companies. And that would be the key term:
TWO COMPANIES. If you invest in one, you have no interest
in the other unless you also invest in that one.

Saying
that SLW owns controlling interest in SLCX is something that
does not work in SL -- even though officers of both
companies have been known to say it. The fact is, Arbitrage Wise is chairman and majority shareholder of both companies. End
of story.

Investors benefit from a synergistic relationship
between the two companies... but that's pretty much the end of
the story as far as any comingling interest.

I find your
reasoning hard to follow, and question whether you might have a
bias pushing your hard-stretched conclusions.

Sorry, but
this is something that random people have argued since July
of last year when Arb bought the exchange... and still today
it never works. If you buy shares in one company from a
guy that owns two companies, you still own interest in
just one company. I'm not sure why anyone would feel
entitled to assets they have not purchased... or earned.

Disgusted

|2008-02-27 06:56:48

Are you saying the outstanding shares of SLCX represent 50% ownership and SLW
owns 50% not represented by shares? That means Arb received 25% of the company
for free when JTF bought AVIX. It also means Arb has now given the CTO only
12.5% of the company if this is true. If the shares outstanding represent 100%
of the company, Arb just gave away 25% of SLCX shares owned by SLW.

Xavier Mohr

|2008-02-27 06:47:50

SLW has the same relationship to SLCX as JTF had with SLCX. They are separate
entities. A shareholder in one is not necessarily a shareholder in the other,
and as the SLCX financials have shown every month they were posted, the funds do
not comingle.

Several people have expressed concern with this method of
operation... however I must note, had JTF and SLCX been tied together, there
would be no exchange right now.

Disgusted

|2008-02-27 06:42:14

SLW Prospectus

"S LCX: Current revenue has surpassed 500,000L per month.
If we can get the business to average 750,000L per month by the end of the year,
that would mean SLWallet will make 375,000L per month after dividends"

I
guess that drops to 187,500 for SLW or does it?

"will receive 25% of the
business, to be issued from my personal portfolio" I thought this was
SLW's portfolio. Enough said.

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