Gladius Network Cybersecurity Startup Dissolves Despite Owing Nearly $13 Million to ICO Investors
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According to a new release, in February 2019, the Securities and Exchange Commission charged Gladius Network LLC with conducting an initial coin offering that was unregistered. The company self-reported the offering to the SEC.
The company had raised $12.7 million in digital assets, and under the SEC’s order, Gladius was to return the funds to investors who had purchased tokens in the ICO and request a return of funds.
It does not appear that Gladius will be reimbursing investors anytime soon, though. A Cointelegraph report indicates that the company presented a message, signed by the Gladius team, that 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.”
If the company does not have funds to operate, it is unlikely that it has the funds to reimburse investors. That is, unless, it no longer has funds to operate because it intends to reimburse investors. At this point, though, it is not clear.