BIT Mining fined $10M for past bribery in Japan

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Grafa2024/11/19 17:00

By:Isaac Francis

Bitcoin (CRYPTO:BTC) mining company BIT Mining, formerly known as the online sports lottery operator 500.com, has agreed to pay $10 million in fines after admitting to bribery charges involving Japanese politicians between 2017 and 2019.

The U.S. Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) disclosed this in statements issued on November 18.

During its previous operations as 500.com, the company bribed Japanese officials with approximately $2.5 million in cash, entertainment, and luxury trips to secure a resort and casino license in Japan.

BIT Mining has now settled the charges by agreeing to a $4 million civil penalty to the SEC and an additional $10 million criminal fine to the DOJ, with $4 million of the DOJ’s fine credited from the SEC penalty.

The DOJ also indicted then-CEO Zhengming Pan, alleging he managed “sham contracts” with third-party consultants to facilitate the bribes, misrepresenting them as legitimate business expenses.

Despite these efforts, the company did not succeed in winning the bid for the resort project, which would have included casinos, hotels, dining, and various amenities.

“Paying bribes to foreign government officials is a serious crime,” highlighted U.S. Attorney Philip Sellinger, emphasising the severity of the offense.

“Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence,” emphasised SEC Enforcement Division Chief Charles E. Cain, highlighting the negative impact on markets.

Although U.S. Sentencing Guidelines suggested a $54 million criminal fine, this amount was reduced due to BIT Mining’s financial condition and inability to pay.

BIT Mining pivoted to Bitcoin mining operations in December 2020 and rebranded in March 2021.

Following the news of the settlement, BIT Mining (BTCM) shares fell by 6.3% in after-hours trading, according to data from Google Finance.

At the time of reporting, the Bitcoin (BTC) price was $91,540.52.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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The Block•2025/02/02 17:11