Blockchain Firm Settles With SEC Over Unregistered $6.3 Million SAFT

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A healthcare-focused blockchain firm has settled charges with the U.S. Securities and Exchange Commission (SEC) over its 2017 ICO.The SEC said on Monday that New England-based SimplyVital Health, Inc. raised around $6.3 million in ether (ETH) via a pre-sale of its HLTH tokens to fund a touted “healthcare-related blockchain ecosystem” called Health Nexus.The pre-sale was notably offered under a simple agreement for future tokens (SAFTs) arrangement – a model supposedly designed to simplify the ICO process and reduce the risk of enforcement actions by offering investment contracts rather than tokens. Following the pre-sale, which closed in April 2018, the firm did not move forward with the planned public offering.The firm sold HLTH tokens that were “not be delivered to investors unless and until created by SimplyVital,” according to the SEC.The commission ultimately ruled that the company had violated provisions of the Securities Act of 1933 by not registering the SAFT…

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