Semler Scientific has reached a tentative agreement with the U.S. Department of Justice (DOJ) to pay $29.75 million to settle claims regarding violations of federal anti-fraud laws tied to its marketing of the QuantaFlo product. To fund this settlement, the company plans to leverage its substantial bitcoin holdings, totaling 3,192 bitcoins worth approximately $267 million, as collateral for a loan from the cryptocurrency exchange Coinbase. The settlement agreement is currently subject to approval, and if finalized, Semler intends to use both borrowed funds and its existing cash reserves to fulfill the settlement payment. The investigation has been ongoing since 2017, when Semler first received a civil investigative demand from the DOJ, and initial discussions about a settlement began earlier this year. The company has asserted its commitment to defending itself vigorously should the DOJ opt to pursue litigation instead of finalizing the settlement. This settlement is said to be unrelated to Semler's bitcoin holdings, which have become an integral part of the company's financing strategy.

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