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Cybersecurity Start-up Gladius Announces Their Dissolvement

November 26, 2019


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?