BIT Mining settles SEC bribery charges with a $4M penalty and a $10M criminal fine, while cooperating with investigations.
The U.S. Securities and Exchange Commission (SEC) has charged BIT Mining, previously known as 500.com, with violating the Foreign Corrupt Practices Act (FCPA). The charges stem from a bribery scheme intended to influence Japanese officials. On November 18, the SEC announced that BIT Mining agreed to pay a $4 million civil penalty to settle the charges.
According to the charges, between 2017 and 2019, BIT Mining wired $2.5 million in bribes in form of money and gifts to Japanese government employees including members of the parliament. The payments were made to look like bogus consultancy work and management consulting charges. These steps were taken with an intention of clinching a deal to open an integrated resort casino in Japan.
The SEC’s filing also released an indictment against the former CEO of 500.com, Zhengming Pan, a Chinese national. He is facing a conspiracy charge for violating the FCPA. Pan was said to have instructed company consultants to pay bribes to Japanese officials, which was camouflaged as contracts. Pan is charged with various charges of violating the FCPA.
FBI Investigates BIT Mining as DOJ Settlement Finalized
Apart from the civil penalty imposed by the SEC, BIT Mining signed a three-year DPAs with the U.S. Department of Justice. The company was criminally required to pay $10 million fine even though the calculated fine was $54 million because of its financial status. The firm will also go on to engage with the Justice Department in other ongoing probes.
In a filing, BIT Mining acknowledged that during 2017 to 2019, under the direction of Pan, the company facilitated approximately $1.9 million in bribes through middlemen to win the bid for the resort. However, BIT Mining did not secure the contract through all these measures.
Since the case involves BIT Mining, the compliance programs have been stepped up for better governance and training. Furthermore, the company has vowed to reduce its operations in the so-called high-risk countries. The Justice Department recognized BIT Mining as a cooperative party, though not very much.
On the other hand, the FBI’s International Corruption Unit is still working on the case. This continuous push shows the continued drive to ensure that even the business entities are made to suffer the law for indulging in unlawful bribery ring.
