SEC to Begin Big ICO Startups Check

This is reported by anonymous source to Wall Street Journal

01 March 2018 1520

The Securities and Exchange Commission of the United States (SEC) initiated the full-scale check of crypto-currency companies. An unnamed source told the Wall Street Journal that the regulator issued dozens of agendas and requests for information provided to consulting and technology companies operating in the US crypto-currency market.

Most of all, the regulator's concern is not caused by the trade in crypto-currencies itself, but by the unregulated ICO-space, the companies operating in it, and their methods of attracting financing. Among other things, the SEC wants information about the structures of ICO and pre-ICO of startups caught in its field of vision that do not fall under the requirements governing traditional public campaigns. The increased pressure on the market for crypto currency followed numerous statements that suggested that sooner or later the US regulators will move from words to decisive actions.

In January, the chairman of the SEC, Jay Clayton, promised not to ignore the company, whose leadership is trying to artificially raise the prices of its shares, stating their alleged connection with the blockade space. The activities of several such companies were indeed suspended.

Repeatedly, the SEC has warned both crypto-currency start-ups themselves, which, according to it, "violate the rules universally designed to protect investors".

ICO Blockchain

Gladius to Register Token as Security & Refund Investors

Startup self-reported in SEC on unregisted securities offering and cooperate with Commission, so it won't be fined

21 February 2019 63

Cryptocurrency startup Gladius Network LLC has informed the US Securities and Exchange Commission (SEC) about the sale of unregistered securities. On February 20, the SEC filed relevant charges.

During the ICO, the Gladius project raised $ 12.7 million in cryptocurrency equivalent for the development of a network for leasing computing facilities to protect against cyber attacks. The SEC stressed that the startup did not register their tokens as securities, as required by federal law, and did not agree to exclude them from the rules in the legal manner.

Moreover, tokensale was held after the publication of the SEC report on the situation with The DAO, in which the regulator stated that ICO can offer securities.

The press release says that Gladius contacted the SEC in the summer of 2018 and expressed interest in cooperating with the investigation. Thus, the agency refused to levy a fine, because the startup voluntarily agreed to return the funds to investors who require it and register the token in accordance with the provisions of the Securities Act of 1934.