Former BIT Mining Chief Executive Officer Charged In $1.9 Million Bribery Case
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
US officials have charged the former leader of BIT Mining Ltd. for planning a large bribery scheme. The company, once known as 500.com, is accused of trying to bribe Japanese government officials with $1.9 million between 2017 and 2019. The authorities stated that their goal was to gain the rights to build a casino in Japan.
Zhengming Pan, a Chinese national and former Chief Executive Officer, was charged with breaking foreign corruption laws. The charges include conspiracy to pay bribes and keeping false financial records.
BIT Mining Agrees To Pay $14 Million In Penalties For Bribery Scheme
The investigation showed that Pan worked with consultants who helped deliver cash, gifts, and luxury trips to officials. These consultants also used fake contracts and expenses to hide the payments, according to the authorities.
Nicole M. Argentieri, a top official in the Department of Justice, said the case shows their strong efforts to hold companies and individuals responsible for corruption. She reported that the bribery plan involved senior leaders at BIT Mining and that their actions harmed fair business practices.
Authorities shared that BIT Mining has agreed to pay $14 million in penalties to settle the case. This includes $10 million under a three-year deferred prosecution agreement with the Department of Justice. The company’s financial struggles reduced the penalty from an original calculation of $54 million.
Philip R. Sellinger, a US Attorney, commented that bribing foreign officials is a serious crime. He stated that BIT Mining’s top leaders instructed consultants to offer bribes to win a deal for a large resort in Japan.
BIT Mining Strengthens Anti-Corruption Policies And Pays SEC Fine
The Securities and Exchange Commission (SEC) also fined BIT Mining $4 million, which will go toward the criminal penalty.
The SEC said the total illegal payments reached $2.5 million. Charles E. Cain, head of the SEC’s Foreign Corrupt Practices Act Unit, stated that bribery disrupts fair markets and damages trust in companies.
Authorities noted that BIT Mining’s help with the investigation was limited but included giving foreign documents and translations. The company has since taken steps to avoid future violations.
It created stronger anti-corruption rules, trained its managers on compliance, and added new oversight by its board.
BIT Mining shared it has shifted to less risky businesses and reduced work in areas with high corruption risks.
It stated these changes aim to protect its operations and rebuild trust with investors. The company added that it plans to follow stricter rules in the future to prevent similar problems.
