The crypto firm and unregistered ICO issuer Gladius Network LLC decided to shut down its operations last November. The decision was taken 9 months after settlement with the U.S. Securities and Exchange Commission. Unregistered ICO Issuer Gladius Network LLC Shut Down.
During the settlement, the startup was required to give a refund to the investors who took part in the sales worth $12.7 million. The SEC decided not to inflict a penalty on Gladius as the company had informed them about the ICO token sale itself.
At the time Gladius announced, “Despite our best efforts, the company no longer has funds to continue operations.”
Continuing, “We regret to inform you that Gladius Network LLC has ceased operations effective immediately.”
The firm planned to give its code on GitHub for a few months to facilitate individuals who want to work on their project versions.
Gladius stated, “We still believe in the power of our technology, and if anyone in the community is interested in pursuing it we welcome it.”
In 2017, the firm began to sell its Gladius tokens in exchange for Ethereum. As per a press release, it raised about 24,000 ETH after its ICO token sale in December 2017.
In 2018, the federal agency charged the following crypto firms for breaching their ICO security registration rules:
- CarrierEQ Inc.
- Paragon Coin Inc.
The two startups had agreed to abide by the security registration requirements for their ICOs after settling the fines imposed on them.
According to the SEC, CarrierEQ Inc. and Paragon Coin Inc. are the first instances “imposing civil penalties solely on securities offering registration violations.”
A report said both firms did not pay their charges and CarrierEQ Inc. stated its deadline was changed to December.