April

BIT Mining, formerly 500.com, has agreed to pay a $10 million penalty to resolve its alleged involvement in a bribery scheme. According to an investigation launched by the<a href="https://thecoinrise.com/u-s-doj-to-recoup-17-9m-in-sbf-linked-crypto-bribery-scheme/"> U.S. Department of Justice</a> (DOJ) and U.S. Securities and Exchange Commission (SEC), the company bribed Japanese government officials. 
<h2 id="b-legal-repercussions-and-deferred-prosecution-b">Legal Repercussions and Deferred Prosecution</h2> 
In<a href="https://www.sec.gov/newsroom/press-releases/2024-180"> court documents</a> between 2017 and 2019, BIT Mining disclosed that it paid $1.9 million through consultants to bribe Japanese government officials. The bribes were meant to help them secure the bid for a casino resort. However, the bid did not pull through. 
For context, 500.com functioned as an online sports lottery service provider. Although based in China’s Shenzhen province, its shares were traded on the New York Stock Exchange as WBAI. However, in April of 2021, it switched from lottery to concentrate on mining cryptocurrency. This led to a rebranding move and a switch in name from 500.com to BIT Mining, with its ticker becoming BTCM. 
In the case against it, the DOJ charged the company’s former CEO, Zhengming Pan, a Chinese national, with violations of the Foreign Corrupt Practices Act (FCPA). Meanwhile, BIT Mining entered a 3-year deferred prosecution agreement with the DOJ. The offense leveled against it was one count of conspiracy to violate the anti-bribery and books provisions of the FCPA. 
<h2 id="b-doj-and-sec-stance-on-bit-mining-bribery-scandal-b">DOJ and SEC Stance on BIT Mining Bribery Scandal</h2> 
Nicole M. Argentieri, head of the DOJ Criminal Division, emphasized that the charges against Pan show the department’s commitment to serving justice. Argentieri maintained that private individuals and corporate entities who contravene the law will always be accountable for their crimes. 
In 2022, the<a href="https://thecoinrise.com/doj-charges-chinese-operative-with-obstruction-and-btc-bribery/"> DOJ also prosecuted some Chinese operatives</a>, Guochun He and Zheng Wang, for allegedly interfering with the US justice system. They were charged with seeking insider information about a U.S. criminal case. 
Similarly, Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit, condemned the bribery moves. He noted that such actions distort the smooth market operations and erode investors’ confidence. 
<h2 id="b-reduced-penalty-amid-bit-mining-financial-constraints-b">Reduced Penalty Amid BIT Mining Financial Constraints</h2> 
According to U.S. laws, the criminal penalty under its sentencing guidelines should be $54 million. However, due to the company’s financial constraints, a deal between the DOJ and BIT Mining set the penalty at $10 million. 
Additionally, BIT Mining will pay $4 million to the SEC for similar charges. This is a civil penalty against the firm. Notably, the SEC had placed the bribery scheme at about $2.5 million. It included cash bribes, expensive tips, and entertainment. 
The post <a href="https://thecoinrise.com/bit-mining-settles-with-doj-and-sec-to-resolve-bribery-scandal/">BIT Mining Settles With DOJ and SEC to Resolve Bribery Scandal</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

BIT Mining Settles With DOJ and SEC to Resolve Bribery Scandal

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