SEC Orders ICO to Refund $12.7 Million

Cybersecurity startup Gladius has recently dissolved without complying with the United States Securities and Exchange Commission’s (SEC) order to reimburse investors.

The company’s co-founder and C.T.O Alex Godwin announced the dissestablishment of the company in a message sent to the project’s official Telegram Channel on November 22nd. 

The company no longer has funds to continue

The anouncement — collectively signed by the Gladius team — reads:

“We regret to inform you that Gladius Network LLC has ceased operations effective immediately and has filed for dissolution. Despite our best efforts, the company no longer has funds to continue operations.”

This message also promises that the codebase maintained by the company will stay active for the next three months, for anyone to use.

Charged by the SEC for selling unregistered securities

Gladius was charged by the SEC for selling unregistered securities in February after reporting to the regulator. 

The company raised over $12.7 million in various cryptocurrencies during their initial token sale in late 2017. The SEC stated that it took a relatively lenient approach towards Gladius since they self-reported:

“The SEC did not impose a penalty because the company self-reported the conduct, agreed to compensate investors, and will register the tokens as a class of securities.”

Gladius is just one of many firms that have missed their deadlines on repaying investors following charges by the SEC. Gladius (GLA) token holders have created a Telegram chat group, dubbed Gladius Rektiers, to discuss and criticize the lenient approach by the SEC, and decide the next course of action.