BIT Mining settles for $10 million over bribery allegations in Japanese resort license bid

In a settlement with US authorities, BIT Mining agreed to pay $10 million in penalties related to bribery allegations involving Japanese government officials to obtain a resort license. The company, which operates in the Bitcoin mining sector, admitted to violating the Foreign Corrupt Practices Act (FCPA) by conspiring to pay bribes and falsify records.

As part of the settlement, BIT Mining entered into a three-year deferred prosecution agreement (DPA) with the US Department of Justice and the SEC. Former CEO Zhengming Pan also faces indictments on multiple counts, including conspiracy and violations of the FCPA’s anti-bribery provisions.

The official press release revealed that the then CEO of BIT Mining and other employees paid around $1.9 million in cash bribes, trips, entertainment and gifts to Japanese officials through intermediaries between the 2017 and 2019.

The goal was to secure a bid for an integrated resort in Japan. Pan hired third-party consultants to facilitate and conceal the bribes, which were disguised as legitimate business expenses such as management consulting fees. Despite these efforts, the company ultimately lost the bid for the complex project.

In a statement, U.S. Attorney Philip R. Sellinger for the District of New Jersey said:

“Paying bribes to foreign government officials is a serious crime. The top leadership of BIT Mining, then known as 500.com, ordered consultants to pay bribes to Japanese government officials to win a bid to open a large complex in Japan .The illegal scheme began at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and subsequent efforts to conceal them.

As part of its Deferred Prosecution Agreement (DPA), BIT Mining had initially agreed to pay a $54 million criminal penalty under the country’s sentencing guidelines. However, due to its financial challenges, the company and the Department of Justice agreed to reduce the penalty to $10 million.

In addition, BIT Mining will receive a credit of up to $4 million against the civil penalty it has agreed to pay to the SEC as part of an independent investigation.

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