SimplyVital Health, a healthcare-focused blockchain company, agreed Aug. 13 to pay the U.S. Securities and Exchange Commission $6.3 million to settle allegations about an unauthorized initial coin offering, according to CoinGeek.
The U.S. government claimed the New England-based company wrongfully raised $6.3 million through a presale of its HLTH digital coins. SimplyVital had promoted its blockchain ecosystem, calling it the “Health Nexus.”
At first, investigators believe the ICO was legitimate. The presale of the coin was offered under an agreement for investors to purchase future tokens.
When the presale closed in April 2018, however, SimplyVital allegedly did not continue to move forward with the planned public offering. The SEC sought a $6.3 million penalty, which was the majority of the funds the blockchain company had raised.
The government has followed the same path for penalizing companies who violate ICOs. Jay Clayton, the chairman for the SEC, said it is because “virtually every ICO ever conducted in the U.S. has violated federal security laws,” reports CoinGeek.
The settlement was not an admission for wrongdoing.
More articles on health IT:
Brigham and Women’s launches preventive genomics clinic
5 trends shaping the future of digital health
Patient records at Connecticut health system potentially exposed in shipping mishap
© Copyright ASC COMMUNICATIONS 2019. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.