Cryptocurrency startup Gladius Network LLC informed the Commission on securities and stock exchanges of the USA (SEC) about the sale of unregistered securities. 20 Feb SEC put forward a proper charge.
Company settles charges unregistered ICO after self-reporting to SEC https://t.co/NQkiE43QzH
— SEC_News (@SEC_News) February 20, 2019
During the ICO project Gladius has raised $12.7 million in cryptocurrency equivalent under the development of the network to lease capacity to protect against cyber attacks. The SEC emphasized that a startup not registered their tokens as securities, as required by Federal law and have not agreed exception to the rules in the right order.
Moreover, tocancel was carried out after the publication of the SEC report on the situation of The DAO, in which the regulator said that the ICO can offer securities.
In a press release said that the Gladius has contacted the SEC in the summer of 2018, and expressed interest in cooperating with the investigation. Thus, the Agency refused to levy the fine, as the startup has voluntarily agreed to return the funds to investors who demand it, and register the token in accordance with the provisions of the securities Act of 1934.
Earlier, similar charges were brought against Airfox startups and Paragon. The Agency ordered both projects to return funds to the investors, to register the tokens and pay a $250 thousand fine.
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