SimplyVital Health has settled an $ 6.3 million token sale deal with the SEC

The blockchain company SimplyVital Health, working in the healthcare sector, settled the issue of its $ 6.3 million ICO held in 2017 with the U.S. Securities and Exchange Commission.

This week, the US Securities and Exchange Commission (SEC) announced that SimplyVital Health raised about $ 6.3 million in ETH through pre-sale of its HLTH tokens to finance a “health-related blockchain-based ecosystem” called Health Nexus.

Pre-sale was carried out as part of the Simple Agreement on Future Tokens (SAFT) – a model designed to simplify the ICO process and reduce the risk of enforcement actions by regulators by offering investment contracts. After the preliminary sale, which ended in April 2018, the company did not advance with the planned public offer.

According to SEC, the company sold HLTH tokens, which “were not transferred to investors until SimplyVital was created.” Ultimately, the Commission ruled that the company violated the provisions of the Securities Act of 1933 by not registering SAFT with the regulator prior to the offer, and was not eligible for exemption from registration.

SimplyVital complied with the requirements of the SEC restraining order without “acknowledging or refuting the findings of the SEC”. By April 19, 2019, SimplyVital voluntarily returned the bulk of the funds raised from investors – a factor that, according to the SEC, was taken into account when deciding not to apply civil sanctions.

Recall that recently the SEC demanded to freeze the assets of the organizers of the Veritaseum ICO, and in February the Commission obtained an injunction against the ICO Blockvest startup.