- BIT Mining, formerly 500.com, admitted to bribery between 2017 and 2019.
- The SEC imposed a $4 million civil penalty, credited against a $10 million DOJ fine.
BIT Mining Ltd., formerly known as 500.com, has agreed to pay a $10 million penalty to resolve allegations of violating the Foreign Corrupt Practices Act (FCPA). The charges stem from a bribery scheme aimed at influencing Japanese government officials to secure a casino license between 2017 and 2019.
Former CEO Indicted for Role in Bribing Japanese Officials and BIT Mining Ltd. Resolves Foreign Bribery Investigation
: https://t.co/FreYjxbkJZ pic.twitter.com/0Q1zDAjur2
— Criminal Division (@DOJCrimDiv) November 18, 2024
The Securities and Exchange Commission (SEC) found that the company authorized $2.5 million in bribes through cash, entertainment, and luxury trips. These payments sought to influence Japan’s parliament members to secure a bid for an integrated resort casino project. However, the scheme failed, and BIT Mining never entered the market.
Penalties and Actions Against BIT Mining
The SEC ordered BIT Mining to pay a $4 million civil penalty. The company also consented to cease further violations of anti-bribery and accounting control provisions. Meanwhile, the U.S. Department of Justice (DOJ) imposed a $10 million fine, which includes the $4 million credited toward the SEC penalty.
In a related case, the DOJ indicted former CEO Zhengming Pan. He allegedly orchestrated the scheme by using sham contracts with consultants to funnel illicit payments. Pan faces multiple charges, including conspiracy and violations of anti-bribery and recordkeeping provisions of the FCPA.
Charles Cain of the SEC emphasized that corruption distorts markets and erodes investor confidence. Nicole Argentieri of the DOJ reiterated the commitment to holding corporations and leaders accountable for bribery.
Under a three-year deferred prosecution agreement, BIT Mining must enhance its compliance measures and provide regular updates. The DOJ recognized these efforts, granting a 10% penalty reduction. Due to the company’s financial constraints, the DOJ reduced the original $54 million fine to $10 million.
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