SEC Charges Gladius Network over Unregistered Initial Coin Offering (ICO)


During the Commission’s investigation of its wrongdoing, Gladius Network cooperated voluntarily and extensively. It provided relevant information and documents, allowing a quick and efficient completion of the probe.

The SEC did not impose a civil penalty against Gladius Network because it self-reported its violations and cooperated with the investigation. In addition, the company agreed to take immediate remedial steps, agreed to returns funds to investors, and register its GLA tokens as a class of securities.

The Commission ordered the company to cease and desist from committing or causing any violations and any future violations of the Section 5(a) and (c) of the Securities Act.

In a statement, Robert A. Cohen, Chief of the SEC’s Cyber Unit, said, “The SEC has been clear that companies must comply with the securities laws when issuing digital tokens that are securities. Today’s case shows the benefit of self-reporting and taking proactive steps to remediate unregistered offerings.”

The SEC recently imposed penalties against two companies that conducted unregistered ICOs. The companies also agreed to similar undertakings.