Cybersecurity Start-up Gladius Announces Their Dissolvement
On the 22nd November, Gladius announced via their telegram channel that they have filed for dissolution. This message comes directly from the companies Co-Founder and CTO, Alex Godwin who said:
“To the Gladius Community,
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. Our code will remain available on GitHub for the next three months. We still believe in the power of our technology, and if anyone in the community is interested in pursuing it we welcome it.
— The Gladius Team”
It appears that they have done this without complying with the United States Securities and Exchange Commission’s (SEC) order to reimburse investors after a $12.7 million ICO that funded the project.
As the company are claiming to have run out of funds, it seems that investors will not be getting a refund on their purchase of ICO tokens from 2017. After continuous delays, the company still doesn’t have a project and somehow managed to burn through all their money raised from supporters.
Since Gladius self-reported themselves, the SEC said they had a more lenient approach towards the company:
“The SEC did not impose a penalty because the company self-reported the conduct, agreed to compensate investors, and will register the tokens as a class of securities.”
Gladius received yet another extension to repay investors until November 18th, which passed recently, and now they have filed for dissolution right after the deadline therefore asking the question, was this planned?