BIT Mining, formerly known as 500.com, has been charged with Foreign Corrupt Practices Act (FCPA) violations by the Securities and Exchange Commission (SEC).
According to a statement issued by the SEC, BIT Mining has resolved the allegations by paying a $4 million civil penalty.
500.com was formerly an online sports lottery service provider incorporated in the Cayman Islands, with headquarters and business operations in Shenzhen, China.
Simultaneously, the US Department of Justice (DOJ) has entered into a non-prosecution agreement in which BIT Mining which has agreed to pay a $10 million criminal fine, of which $4 million will be satisfied by the company’s payment of a civil penalty according to the SEC’s order.
The former CEO of 500.com, Zhengming Pan, a Chinese national, was the target of the charges, according to the DOJ.
The SEC claims that from 2017 to 2019 BIT Mining engaged an a bribery scheme to influence officials including members of the Japanese parliament.The allegations claim that BIT Mining sought to establish a resort and casino in Japan.
The order claims that the bribes were authorized by a 500.com senior executive and that, after the bribery scheme came to light, the company never entered the market.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division, commented:
“Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
According to court documents, BIT Mining admitted that its then-CEO Pan, employees, and agents agreed to pay approximately $1.9 million in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials.
