Semler Scientific, a healthcare technology company, has entered into a preliminary settlement with the U.S. Department of Justice (DOJ), agreeing to pay $29.75 million to resolve allegations of violating federal anti-fraud laws in connection to its QuantaFlo product marketing. To finance this settlement, Semler Scientific intends to use its bitcoin reserves as collateral for a loan from Coinbase.

The firm currently owns 3,192 bitcoins valued at around $267 million. It's worth noting that the investigation into Semler Scientific's QuantaFlo marketing practices is distinct from its bitcoin investments.

While the settlement agreement is not final yet, Semler Scientific warned its investors in a Tuesday filing that failing to reach a final settlement could lead the DOJ to pursue further legal actions against the company seeking damages beyond the agreed-upon amount. In such a scenario, Semler Scientific assures it will strongly defend itself against any charges brought by the DOJ.

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Semler Scientific Agrees to Pay DOJ $30M to Settle Fraud Investigation

In a Tuesday filing, the company said it had reached a loan agreement with crypto exchange Coinbase allowing it to borrow money — using its bitcoin stockpile as collateral — to pay the settlement.

• Semler Scientific has reached a tentative settlement with the DOJ, agreeing to pay $29.75 million to resolve claims of federal anti-fraud law violations related to the marketing of its QuantaFlo product.
• The company plans to use its bitcoin holdings as collateral for a loan from Coinbase to help fund the settlement payment.
• Semler Scientific currently holds 3,192 bitcoins, a stockpile worth approximately $267 million at today’s price.

Healthcare technology firm Semler Scientific has reached a tentative settlement agreement with the U.S. Department of Justice (DOJ), disclosing in a Tuesday filing that it was prepared to pay a $29.75 million fine in order to settle all claims tied to potential violations of a federal anti-fraud law related to its marketing of QuantaFlo, its flagship product.

The investigation into Semler Scientific’s marketing of QuantaFlo is unrelated to its bitcoin holdings.

Semler Scientific’s settlement agreement with the DOJ is in principle, meaning that it is not yet set in stone. In its Tuesday filing, the company warned investors that if the parties are unable to come to a final agreement, there is still a risk that the DOJ could file charges against the company “seeking damages in excess of such agreed settlement amount.”

“Should the parties not be able to reach settlement and DOJ file a complaint, Semler Sci intends to vigorously defend itself in any such action,” the firm said in its filing.