Semler Scientific, a healthcare technology firm with significant bitcoin holdings, has reached a settlement with the US Department of Justice over claims of federal anti-fraud law violations. The company plans to use its bitcoin stockpile as collateral for a loan to fund a $29.75 million settlement payment.
Semler Scientific, a healthcare technology firm with a sizable bitcoin holdings, has reached a tentative settlement with the U.S. Department of Justice (DOJ) over claims of federal anti-fraud law violations related to its marketing of QuantaFlo.
Bitcoin is a decentralized digital currency that allows for peer-to-peer transactions without the need for intermediaries.
Created in 2009 by an anonymous individual or group using the pseudonym Satoshi Nakamoto, bitcoin uses cryptography to secure and verify transactions.
The total supply of bitcoin is capped at 21 million, with new coins created through a process called mining.
As of 2022, the global market capitalization of bitcoin exceeds $1 trillion, making it one of the most widely traded digital currencies in the world.
The company plans to use its bitcoin stockpile as collateral for a loan from crypto exchange Coinbase to help fund the $29.75 million settlement payment. Alongside, Semler Scientific has readied a $500 million ATM mixed securities offering to raise money for more bitcoin purchases.
Last month, Semler Scientific disclosed that it had received a civil investigative demand (CID) from the DOJ back in 2017, which typically precedes a lawsuit. ‘The company at that time said it had complied with several subsequent subpoenas and began initial settlement discussions with the DOJ in February.’ The company at that time said it had complied with several subsequent subpoenas and began initial settlement discussions with the DOJ in February.
The Department of Justice (DOJ) is a federal executive department responsible for enforcing federal laws and maintaining law and order in the United States. Established in 1870, the DOJ is headed by the Attorney General, who serves as the chief law enforcement officer of the country. The DOJ oversees various agencies, including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and the U.S. Marshals Service. Its primary functions include enforcing federal laws, providing legal advice to the government, and protecting national security.
The news of the settlement, along with the decline in bitcoin price, has significantly impacted SMLR shares, which were lower by 37% year-to-date as of the close of trading on Tuesday.
