Home / Crypto News / Gladius pays the money back from his ICO on pressure from the SEC

Gladius pays the money back from his ICO on pressure from the SEC


The US company Gladius Network LLC had even filed with the US Securities and Exchange Commission in 2018. The subject of the self-disclosure was an unregistered Initial Coin Offering (ICO). Now the SEC has closed the case against Gladius. Partly because of the self-disclosure, the agency has refrained from imposing a penalty on the company.

In the US, companies that sell securities are generally required to register and have previously approved these offers with the SEC. However, Gladius had not done so at his ICO end of 2017. One reason for this could have been that at that time, due to the unresolved legal situation, it was generally not assumed that tokens could be “securities”. The SEC, however, disagrees. Gladius, who works in the field of cyber security, had taken with his ICO about 24 million Ethereum (ETH). That was about $ 12.7 million.

The SEC is showing mercy

The SEC has issued a press release on the case. In it she confirmed that the company had reported itself. At the same time, the management has stated that all funds received should be repaid to the investors and a request for registration of the tokens. For that reason, no penalty has been imposed, the SEC wrote. So it was said:

“The SEC has not imposed any sanction because the company has self-reported and agreed to compensate the investors. At the same time, the company will register the tokens as securities. “

Earlier, similar cases against Airfox and Paragon Coin ended with fines of $ 250,000.

ICO tokens as securities

In the press release, Robert Cohen, head of the SEC's cyber unit, was quoted as saying:

“The SEC has made it clear that companies must comply with securities laws when issuing digital tokens that are securities. Today's case shows the benefits of self-advocacy and proactive action to correct unregistered offerings. “

Even if Gladius does not have to pay a fine to the SEC, the company must apply to the agency for registration. The company is required to publish many of its information. This information is important to investors. From this they can estimate if the GLD tokens are a profitable investment.

The previous investors can reclaim their investments. The current price and volume are likely to invite. The trading volume of the GLD tokens was slightly above USD 5,800 at the time of writing. The price was around $ 0.025 per token.

The Gladius network is functional. In the real world, almost no one knows it. Most websites rely on cloudflare and similar offerings that serve the same purpose.

Source: Pixabay

Author: Peter Joost – Source Post: https://www.kryptovergleich.org/gladius-zahl-das-geld-aus-i-em-ico-zurueck-auf-druck-der-sec/

Disclaimer: CoinNewsDesk.com is a crypto news portal, financial discussion forum, and content curator / aggregator. Articles on Coin News Desk are provided for entertainment and information purposes only. We are not an investment advisor and do not provide financial advice.

We can not review all articles posted on CoinNewsDesk.com. Please independently research and verify any information here before relying on it as fact. It's also important to do proper due diligence and analysis, including consulting a professional financial advisor. No content on Coin News Desk makes any recommendation to enter into any type of investment or engage in any investment strategy on this website.

About Coin News Desk Team