'Semler Scientific, Inc. Succeeds in Preparing Settlement Funds Using Bitcoin Reserves Amid 'Fraud Prevention Law Violation'

Semler Scientific, Inc., a NASDAQ-listed company in the U.S. that has incorporated Bitcoin (BTC) as a major asset, is drawing attention to whether it can succeed in settling with the Department of Justice (DOJ) using its Bitcoin holdings.

According to CoinDesk, a cryptocurrency-focused media outlet, on the 15th (local time), Semler Scientific, Inc. reported in a filed document that it is prepared to pay $29.75 million for a settlement related to allegations of fraud prevention law violations that occurred during the marketing process of QuantaFlo.

Previously, last month, Semler Scientific, Inc. disclosed that it had received a Civil Investigative Demand (CID) from the DOJ in 2017. In relation to this, discussions for a settlement with the DOJ began in February.

Notably, Bitcoin, which Semler Scientific, Inc. has been acquiring, played a significant role in this settlement. Bitcoin was helpful in preparing the fine to be paid.

According to the 8-K document submitted to the SEC by Semler Scientific, Inc., the company has entered into an agreement with the cryptocurrency exchange Coinbase to borrow both cash and digital assets using its Bitcoin holdings as collateral. Semler Scientific, Inc. stated, "We plan to borrow funds according to the agreement with Coinbase and use the proceeds to pay the settlement amount proposed by the DOJ."

However, Semler Scientific, Inc. has not yet succeeded in reaching a final settlement with the DOJ. This is because the DOJ may claim damages exceeding the agreed settlement amount.

Meanwhile, Semler Scientific, Inc. currently holds a total of 3,192 Bitcoins, which amounts to approximately $267 million at the current market price.