Gladius Dissolves Ignoring SEC Order to Refund $12.7M ICO (Cointelegraph) Gladius has ceased all operations without reimbursing its investors as ordered by the SEChttps://t.co/qZgZefX5Vd#LeverageTrading pic.twitter.com/BETxH9IaRR — CRYPTONEWS.WATCH (@crypto_news24) November 24, 2019
On November 22, Alex Godwin, the Co-founder and Chief Technology Officer (CTO) of Gladius, announced the dissolution of the company in a message that sent to the project’s official Telegram group.
The message, collectively signed by the Gladius team, reads:
“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.”
Likewise, the message also promises that the codebase maintained by the company will remain online for three months for anyone to use.
However, the company raised about $12.7 million in cryptocurrency during its token sale in late 2017. The SEC noted that it took a particularly lenient approach towards the company since it self-reported:
“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.”
However, SEC criticizes that Gladius (GLA) token holders have created a Telegram chat group, dubbed Gladius Rektiers, to discuss the next course of action.
Thus, Bitttburger, the Reddit user, wrote:
“The SEC apparently doesn’t bother enforcing its own judgments. And instead spent the next year and a half granting them extensions. Please join us in the telegram chat for Gladius investors discussing legal recourse: https://t.me/gladius_rektiers Main Gladius channel has of course been closed down.”