{"id":817102,"date":"2025-01-04T08:27:57","date_gmt":"2025-01-04T14:27:57","guid":{"rendered":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/04\/bit-mining-to-pay-10m-fine-for-bribing-japanese-politicians-in-former-life\/"},"modified":"2025-01-04T08:27:57","modified_gmt":"2025-01-04T14:27:57","slug":"bit-mining-to-pay-10m-fine-for-bribing-japanese-politicians-in-former-life","status":"publish","type":"post","link":"https:\/\/newsycanuse.com\/index.php\/2025\/01\/04\/bit-mining-to-pay-10m-fine-for-bribing-japanese-politicians-in-former-life\/","title":{"rendered":"BIT Mining to pay $10M fine for bribing Japanese politicians in former life"},"content":{"rendered":"
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BIT Mining, previously known as online sports casino 500.com, paid about $2.5 million worth of bribes to Japanese officials between 2017 and 2019. <\/p>\n

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Bitcoin mining firm BIT Mining has admitted it authorized paying bribes to Japanese politicians in an attempt to win a bid for a resort and casino license in Japan and has agreed to pay $10 million worth of fines to the United States government to resolve the charges.\u00a0<\/p>\n

BIT Mining\u2019s bribery scheme occurred between 2017 and 2019 when the firm was known as 500.com \u2014 a Chinese online sports lottery company.\u00a0<\/p>\n

The bribes consisted of roughly $2.5 million worth of illicit cash bribes, entertainment and extravagant trips for Japanese politicians, according<\/a> to the US Securities and Exchange Commission\u2019s Nov. 18 statement.<\/p>\n

BIT Mining agreed<\/a> to pay a $4 million civil penalty<\/a> to the SEC and a $10 million criminal fine to the US Department of Justice (DOJ). However, $4 million of that will be satisfied by the civil penalty paid<\/a> to the SEC.<\/p>\n

Meanwhile, the DOJ has also charged 500.com\u2019s then-CEO Zhengming Pan for orchestrating the bribes.\u00a0<\/p>\n

The DOJ said he entered into \u201csham contracts\u201d with third-party consultants to make the illicit payments and falsely recorded those payments as legitimate business expenses to conceal the bribes.<\/a><\/p>\n

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Source: <\/em>Department of Justice<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

The contract would have allowed the company to open a resort, including hotels, casinos, retail, dining, convention facilities and entertainment venues in Japan. However, the company ultimately failed to win the contract to open the resort.\u00a0<\/p>\n

Related: <\/strong><\/em>SEC sues \u2018fake\u2019 crypto exchanges in first action on pig butchering scams<\/strong><\/em><\/a><\/p>\n

\u201cPaying bribes to foreign government officials is a serious crime,\u201d US Attorney Philip Sellinger for the District of New Jersey said.<\/p>\n

One of the SEC\u2019s Enforcement Division chiefs, Charles E. Cain, added that such bribes impact investor confidence in public companies that are supposed to operate with merit and integrity:<\/p>\n

\u201cBribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence.\u201d<\/p><\/blockquote>\n

According to US Sentencing Guidelines, BIT Mining should have faced a $54 million criminal fine, but this was reduced due to BIT Mining\u2019s financial condition and inability to pay the penalty.<\/p>\n

The company moved into Bitcoin mining in December 2020 and announced<\/a> its name change three months later in March. <\/p>\n

BIT Mining<\/a> shares tanked 6.3% in after-hours when the SEC and DOJ issued their statements, Google Finance data<\/a> shows.<\/p>\n

Magazine:<\/strong><\/em> Godzilla vs. Kong: SEC faces fierce battle against crypto\u2019s legal firepower<\/strong><\/em><\/a><\/p>\n