SEC, DOJ Fine Bit Mining Ltd. for Violation
The DOJ and SEC fined Bit Mining Ltd. $14 million for violating the Foreign Corrupt Practices Act through a bribery scheme.
Bit Mining Ltd., a cryptocurrency mining corporation, has been subjected to significant regulatory action by the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC). The company, which was previously known as 500.com, transitioned from functioning as a Chinese online sports lottery provider to concentrating on blockchain technology, cryptocurrency mining, mining pools, and data centers.
Bit Mining has consented to a deferred prosecution agreement (DPA) with the Department of Justice (DOJ), which involves the acceptance of a $10 million criminal penalty for violating the Foreign Corrupt Practices Act (FCPA). Concurrently, the Securities and Exchange Commission (SEC) levied a civil penalty of $4 million for violations that were related
The enforcement actions are centered on a bribery conspiracy that allegedly occurred from 2017 to 2019. Bit Mining and its executives allegedly diverted $2.5 million in illicit payments to Japanese officials, which were disguised as consulting fees, entertainment, and travel, in order to secure a casino and resort development contract.
Zhengming Pan, the former CEO, has been indicted on charges of conspiracy and falsifying records. He is accused of conducting the scheme and concealing bribes through sham agreements. Philip R. Sellinger, the United States Attorney, stated:
The illegal scheme started at the top, with the company’s CEO allegedly fully involved in directing the illicit payments and the subsequent efforts to conceal them.
Bit Mining was unsuccessful in obtaining the Japanese contract, despite the corrupt attempts. The company will enhance compliance measures, collaborate with authorities, and provide anti-corruption training as part of the DPA. Chad Yarbrough, the Assistant Director of the FBI, underscored the significance of these incidents, stating:
This type of criminal activity undermines the integrity of business practices.
The case, which was investigated with the assistance of Japanese authorities, underscores the global endeavors to combat corporate malfeasance.
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