Bitcoin
The bribery plot, conducted when the company was a Chinese online sports lottery provider, occurred between 2017 and 2019.
According to a statement released by the US Securities and Exchange Commission (SEC) on November 18, the illicit payments amounted to around $2.5 million. These payments were disguised as extravagant gifts, luxury trips, and cash bribes directed toward Japanese politicians.
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As part of the settlement, BIT Mining will pay a $4 million civil fine to the SEC, which will partially offset the $10 million criminal penalty owed to the Department of Justice (DOJ). Thus, the remaining financial liability to the DOJ stands at $6 million.
Additionally, the DOJ charged Zhengming Pan, the former CEO of 500.com, for engineering the bribery scheme. Pan allegedly used fake contracts with external consultants to disguise the payments as legitimate business expenses.
US Attorney Philip Sellinger for the District of New Jersey stated that paying bribes to foreign government officials is a serious crime. Charles E. Cain, a chief within the SEC’s Enforcement Division, also stressed:
Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence.
While BIT Mining initially faced the possibility of a $54 million criminal fine under US Sentencing Guidelines, the amount was reduced due to the company’s limited financial capacity.
In other news, the founder of Helix has been sentenced to three years in prison for his role in a Bitcoin laundering scandal. How did the case unfold? Read the full story.
