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August 15, 2019

SEC Reaches Settlement with Healthcare Blockchain Company

On August 12, 2019, the SEC announced a settlement with SimplyVital Health, Inc., a healthcare blockchain company, for offering and selling approximately $6.3 million of securities to the public in unregistered transactions. In late 2017, SimplyVital publicly announced a plan to conduct an initial coin offering (ICO) to raise money to develop a healthcare-related blockchain ecosystem called Health Nexus, and the company announced a "pre-sale" of its Health Cash tokens (HLTH) which were to be used as currency within the Health Nexus system.  The SEC order found that SimplyVital did not file a registration statement with the SEC or qualify for an exemption from registration before offering and selling HLTH to the public, yetSimplyVital raised approximately $6.3 million from its unregistered sale of securities.  SimplyVital voluntarily returned funds to investors and entered into a cease-and-desist order with the SEC.