Gladius dissolution announced on Telegram; ignores SEC compliance

Gladius dissolution announced on Telegram ignores SEC compliance

Sudden Gladius dissolution has GLA token holders up in arms. Gladius, a startup specializing in distributed cybersecurity, has dissolved on its own without undertaking any compliance as per the Securities and Exchange Commission (SEC) guidelines. The arbitrary step has been taken in order to reimburse its investors. This is a serious offense and is sure to further increase the problems of this firm.

The dissolution of the firm was announced by the chief technology officer and co-founder Alex Goodwin on 22nd November 2019. Interestingly, he made the statement about Gladius dissolution on the official Telegram messaging group. This is something unheard of in recent times. He said the company has run out of funds, and its operations cannot continue. The Gladius team collectively signed the message that read how the team regrets the closure of Gladius Network LLC. The company’s operations will cease effective immediately, and Gladius dissolution will be filed afterward.

Gladius team has tried its best to procure funds, but all efforts have failed, and there are no more funds to continue the company’s operations. Furthermore, the codebase built by Gladius will still be publicly available online for the next three months so that anyone can use it.

Gladius dissolution isn’t surprising

Gladius’s unfortunate series of events isn’t new. Earlier this year in February, the sale of unregistered securities by Gladius prompted SEC to charge the firm under appropriate regulations. In 2017, the company raised approximately thirteen million dollars ($12.7M) when it sold its cryptocurrency tokens.

As per SEC, the company did self-reporting, and hence, a lenient view was cultivated towards the company. Since the conduct was self-reported, no penalty was reported by the SEC. The company reached an agreement to compensate investors and announced that it will register these tokens under the securities category.

Many other firms, apart from Gladius are facing similar charges where investors have not been repaid despite jumping deadlines. Gladius is just one of several firms that missed their deadlines to repay investors following charges by the SEC. The delay on part of the SEC has raised concerns among the Gladius (GLA) token holders. They criticize the SEC’s lenient approach and are planning legal action against the company.

Image Source: Pixabay

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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