Gladius, a cybersecurity blockchain startup, has shut down, failing to comply with the U.S. Securities and Exchange Commission (SEC) request for a refund to investors. Suspension notice was sent by co-founder and technology director Alex Godwin to Telegram.
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.
Earlier, the US Securities and Exchange Commission accused Gladius of selling unregistered securities. The project raised about $ 12.7 million during the token sale in late 2017. The SEC decided not to impose penalties on him, taking into account the fact that Gladius voluntarily reported the violations.
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.
Last week, it became known that Gladius was among the startups that did not fulfill the terms of the agreement with the SEC, and did not pay off with investors.