SEC Charges ICO With Selling Unregistered Securities After Self-Reporting
ICOBox Founder & CEO Nick Evdokimov shares his thoughts on SEC crackdowns

The U.S. Securities and Exchange Commision (SEC) has charged crypto firm Gladius Network with selling unregistered securities after the company self-reported its misstep.

Gladius raised over $12 million during its Initial Coin Offering (ICO) in late 2017, but failed to register its tokens as securities with the SEC and did not qualify for an exemption. According to press release from the SEC, Gladius owned up to their folly and self-reported the blunder last year.

Because the company took proactive action in resolving their compliance issue, “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.”

As a result, the company will have to return funds to investors who request it and register its tokens as a security. Gladius is getting off much easier than two other non-compliant ICOs who the SEC imposed much harsher penalties upon last fall.

Nick Evdokimov, ICOBox Founder & CEO, is encouraged by the SEC’s action. “We’re seeing both the crypto community and the SEC act in good faith. The SEC has often been painted as an enemy of the crypto world, but in reality, if you meet them on an honest and level playing field, they are willing to work with the crypto community, fix mistakes and foster innovation.”
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['ICO', 'Securities Law', 'Crowdfunding', 'SEC']