Gladius Network dissolves nine months after settling with the SEC
Gladius Network is shutting its doorways consistent with a statement made by way of Co-Founder and CTO Alex Godwin. The Ethereum-based denial-of-service (DoS) coverage startup raised $12.7 million in ETH in a past due 2017 preliminary coin providing (ICO), which drew the ire of the U.S. Securities and Exchange Commission (SEC). Gladius self-reported its unregistered securities sale and later settled with the govt company in Feb. 2019. Faced with refunding disgruntled ICO traders and registering its token as a safety, Gladius overlooked a number of SEC closing dates (despite the fact that it gained more than one extensions) prior to opting to wind down operations.
Why it issues:
Show me the cash: consistent with Decrypt, self-proclaimed Gladius Network traders say they’ve but to obtain any refunds. Despite the SEC’s lenient way tracking Gladius’ adherence to the settlement, the govt company won’t take this topic as flippantly. Affected traders are already convening in Telegram teams to talk about possible avenues of recourse.
Gladius joins the laundry checklist of initiatives to get nipped by way of the SEC over the closing 12 months. But Gladius’ destiny starkly contrasts that of Block.one and its EOS community, who wrote a $24 million take a look at to the SEC for its unregistered $four.1 billion token sale. The fact is smaller initiatives won’t have the budget to swindle their approach out of being classified as a safety, a loss of life knell for the majority application token initiatives.