BIT Mining to be fined $10 million for past bribes to Japanese politicians
Date: 2024-11-19 Author: Gabriel Deangelo Categories: BUSINESS
BIT Mining, the largest Bitcoin mining operator, has admitted to paying bribes to Japanese politicians in an attempt to obtain a license to build a casino resort in Japan. To settle the charges, the company has agreed to pay a fine of $10 million to the U.S. government.
According to a November 18 filing with the U.S. Securities and Exchange Commission (SEC), the incidents occurred between 2017 and 2019, when BIT Mining was still operating under the name 500.com, a Chinese online lottery company.
The bribes included approximately $2.5 million in cash, entertainment, and luxury trips for Japanese politicians.
BIT Mining has agreed to pay a $4 million civil fine to the SEC and a $10 million criminal fine to the U.S. Department of Justice (DOJ). However, $4 million of that amount will be offset against the fine owed to the SEC.
The DOJ also indicted former 500.com CEO Zhengming Pan, who is alleged to have orchestrated the bribery scheme. According to the DOJ, he entered into fictitious contracts with outside consultants through which illegal payments were made. These payments were then disguised as legitimate business expenses to conceal the criminal activity.
BIT Mining, now one of the leaders in the Bitcoin mining industry, is facing serious consequences for its past activities, which highlight the importance of transparency and compliance in business.
