Gladius Network shuts down as ICO investors cry foul
The Gladius Network, a cybersecurity corporate that raised just about $13 million in an ICO in overdue 2017, has close down. The corporate’s co-founder and CTO, Alex Godwin, made the announcement over the weekend by means of the company’s professional Telegram channel.
“We regret to inform you that Gladius Network LLC has ceased operations effective immediately and has filed for dissolution,” Godwin stated in a observation signed through the “Gladius Team.” The corporate, which previous this yr settled with the SEC over its unregistered ICO and agreed to pay off its investors, has run out of cash in spite of its “best efforts,” Godwin stated.
The denial-of-service (DoS) assault answer venture plans to stay its open-source instrument that it has advanced to be had on GitHub for the following 3 months, in keeping with company’s observation. But what Godwin and the remainder of the Gladius crew didn’t say is whether or not investors can ever be expecting to get their a reimbursement—and if this is the case, when. Attorneys for Gladius didn’t in an instant reply to Decrypt’s request for remark.
In February, Gladius changed into one among a trio of high-profile ICO-funded crypto startups to settle with the SEC over the alleged sale of unregistered securities, following within the footsteps of Airfox and Paragon. Gladius’s settlement with the SEC required the unregistered ICO issuer to go back price range to investors who asked money back through submitting a declare. Gladius was once additionally to sign up its Ethereum-based GLA tokens as securities with the Commission.
The agreement additionally noticed Gladius keep away from any more civil consequences since the company took the proactive step to self report back to the SEC, in keeping with the Commission’s observation on the time. However, since that point, Gladius has requested for and won a number of cut-off date extensions to sign up its token as a safety with the SEC, in keeping with a fresh document from the Wall Street Journal.
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It seems that the latest cut-off date of November 18, only a week ahead of Gladius swiftly close down, additionally went unmet. (A spokesperson for the SEC didn’t reply to requests for remark.)
Community contributors on Reddit were vital of the how the corporate has spent its price range over the past two years. Users who declare to be investors say they’ve but to obtain the refunds they’ve asked as required through the SEC agreement. Meanwhile, the corporate has both close down or muted their on-line media platforms, and anxious investors have created a new Telegram crew to talk about felony choices and decide learn how to recoup their stake within the defunct venture.