A new firm based in England SimplyVital Health Inc. has settled with the United States Securities and Exchange Commission (SEC) over an allegedly unregistered $6.3 million initial coin offering (ICO).
According to the announcement published by SEC on Aug. 12, back then in 2017 SimplyVital Health, Inc. planned to conduct an ICO in order to raise funds for a healthcare-related blockchain ecosystem dubbed Health Nexus. The company offered a native token for Health Nexus called Health Cash (HLTH).
The company purportedly announced a pre-sale of HLTH tokens under Simple Agreements for Future Tokens (SAFTs) that were set to be delivered to investors once they were created by SimplyVital.
Nonetheless, the statement states that “SimplyVital did not file a registration statement with the Commission or qualify for an exemption from registration before offering and selling HLTH to the public through the SAFTs.”
The SEC alleged that SimplyVital raised $6.3 million through its token sale between September 2017 and April 2018. Adding that “After concluding its pre-sale in April 2018, SimplyVital ultimately decided not to offer and sell HLTH during its scheduled ICO. In 2019, SimplyVital voluntarily returned to investors substantially all of the funds raised during its pre-sale.”
Without admitting or denying the allegations that it violated certain aspects of the Securities Act of 1933, SimplyVital agreed to a cease-and-desist order levied by the SEC.