Crypto Mining Firm BIT Mining Fined $4M by SEC for Bribery

Crypto Mining Firm BIT Mining Fined $4 Million by SEC for Bribery Scheme

The U.S. Securities and Exchange Commission (SEC) has imposed a $4 million civil penalty on crypto mining firm BIT Mining for violating the Foreign Corrupt Practices Act (FCPA). BIT Mining, previously known as Chinese online betting platform 500.com, was charged with engaging in a bribery scheme to influence Japanese government officials.

SEC Charges and Penalties

The SEC announced the charges on November 18, stating that BIT Mining agreed to the $4 million penalty to resolve the allegations. Between 2017 and 2019, BIT Mining allegedly paid $2.5 million in bribes and gifts to various officials, including members of Japan’s parliament. These payments were disguised as fake consultant contracts and management advisory fees.

Details of the Bribery Scheme

“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.”

The U.S. Department of Justice (DoJ) also stated that BIT Mining agreed to pay a $10 million criminal fine, with $4 million of that amount credited toward the SEC settlement. The DoJ acknowledged that under U.S. Sentencing Guidelines, the appropriate criminal penalty for BIT Mining should be $54 million. However, this amount was reduced to $10 million due to the company’s financial condition and inability to pay the penalty.

Deferred Prosecution Agreement

BIT Mining entered into a three-year deferred prosecution agreement with the DoJ, addressing charges of conspiracy to violate the anti-bribery and books-and-records provisions of the FCPA, as well as direct violations of the books-and-records provisions.

This case highlights the importance of transparency and ethical practices in the cryptocurrency and finance industries. Investors and firms must remain vigilant and adhere to legal standards to maintain trust and integrity in the market.

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