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After Ignoring an SEC Order, Gladius Startup Dissolves

 
After Ignoring an SEC Order, Gladius Startup Dissolves
Breaking News / Crypto Market
  • Gladius, the distributed cybersecurity startup has just dissolved after they didn’t comply with the SEC to give investors back what they were owed.
  • Alex Godwin announced at the end of last week that the company was being dissolved.
  • “We regret to inform you that Gladius Network LLC has ceased operations effective immediately and has filed for dissolution.”

Gladius, the distributed cybersecurity startup has just dissolved after they didn’t comply with the United States Securities and Exchange Commission (SEC) to give investors back what they were owed.

Alex Godwin, the companies co-founder and chief technology officer, announced at the end of last week that the company was being dissolved.

Nothing left to fund

Signed by the whole Gladius team, the message states:

“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.”

In addition to this, the message also promises that the codebase maintained by the firm will stay online for around three months which anyone will be to use.

The distributed cybersecurity startup was charged for selling unregistered securities by the SEC earlier this year after self-reporting to the regulator. 

About $12.7 million in cryptocurrency was raised during its token sale in the later months of 2017. The SEC highlighted that it took a specifically lenient approach towards the company ever since it self-reported that:

“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.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

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