Crypto Firm Gladius Tattles on Itself Before SEC Brings Down the Hammer
The SEC acknowledged a settlement with Gladius Network LLC today. Gladius raised almost $13 million in an ICO at the height of the crypto boom, from October to December 2017. The company tattled on itself last August, self-reporting potential violations to the SEC. As a result, the regulator has been gracious enough to opt not to impose additional financial penalties on Gladius. The catch? Gladius has to offer refunds on all ICO tokens.
Gladius Reports Itself to the SEC
The settlement is similar to the agreement NEO reached with Chinese regulators. In the case of NEO, the token had already surpassed its ICO price. One of the first tokens launched on NEO, the Red Pulse token, also conducted a refund.
The SEC order reads, in part:
“The Commission is not imposing a penalty because of the significant steps Gladius took to remediate the violation. Gladius, which was evaluating the applicability of the federal securities laws to its ICO,self-reported to staff in the Commission’s Division of Enforcement in the summer of 2018, and informed Commission staff that it wanted to do what was necessary to take prompt remedial steps. It cooperated with the staff’s investigation, providing information quickly and in a form useful to the staff.”
Read the full story on CCN.com.
