BIT Mining Pays $10 Million Settlement for U.S. Bribery Charges

BIT Mining Agrees to Pay $10 Million Penalty Over Corruption Scandal in Japan

BIT Mining, a cryptocurrency mining company formerly known as 500.com, has agreed to pay $10 million to resolve bribery charges related to an alleged scheme to influence Japanese government officials. Between 2017 and 2019, the company paid $1.9 million in bribes to secure a casino resort bid in Japan, which it ultimately lost. This settlement follows investigations by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC).

Details of the Bribery Scheme

Court documents reveal that BIT Mining used consultants to channel $2.5 million in bribes, including cash and luxurious trips. The company entered into a three-year deferred prosecution agreement (DPA), admitting to violations of the Foreign Corrupt Practices Act (FCPA), specifically for bribery and improper record-keeping.

Penalties and Financial Details

In addition to the $10 million criminal penalty, BIT Mining agreed to pay a $4 million civil penalty to settle related SEC charges. The DOJ initially suggested a $54 million penalty based on sentencing guidelines, but agreed to a reduced amount due to the company’s financial condition.

Charges Against Former CEO

Zhengming Pan, former CEO of 500.com, was individually charged for orchestrating the bribery scheme. The DOJ emphasized that this case demonstrates its commitment to holding both corporations and individuals accountable for corrupt practices.

Company’s Cooperation and Future Actions

BIT Mining received credit for cooperating with the DOJ and FBI International Corruption Unit, which worked with Japanese authorities on the investigation. The company has also committed to improving its compliance programs and continuing cooperation with future investigations.

Shift to Cryptocurrency Mining

In 2021, BIT Mining transitioned from an online sports lottery provider to a cryptocurrency mining firm, rebranding and changing its ticker symbol to BTCM. Despite this shift, the company’s past actions have resulted in legal and financial consequences.