The United States Securities and Exchange Commission (SEC) has charged crypto firm Gladius Network with selling unregistered securities after the company self-reported to the commission, an SEC press release reveals on Feb. 20.
Gladius reportedly raised approximately $12.7 million in cryptocurrency during its initial coin offering (ICO) in late 2017, after the SEC had warned that tokens offered in such sales can be classified as securities under U.S. law. The commission specifies that the startup did not register its tokens with the agency and its “ICO did not qualify for an exemption from registration requirements.”