Blockchain developer SimplyVital Health settles $6.3M lawsuit with SEC


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.

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