By Connor Hart
BIT Mining will pay a $10 million penalty to the Department of Justice connected to allegations the cryptocurrency-mining company engaged in a widespread bribery scheme.
Up to $4 million of the charge will be credited to a civil penalty that BIT Mining has agreed to pay to the Securities and Exchange Commission to resolve a parallel investigation, the DOJ said Monday.
The company, which was formerly known as 500.com, violated the Foreign Corrupt Practices Act from 2017 to 2019 by attempting to influence foreign officials, including members of Japan's parliament, in efforts to establish a resort casino in Japan, according to the SEC.
Its scheme involved illicit payments totaling around $2 million in the form of cash bribes, entertainment and extravagant trips, according to the agency's order.
BIT Mining didn't immediately respond to a request for comment.
Zhengming Pan, the company's former top executive, was indicted in connection with these charges.
Pan was charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act. He was additionally charged with one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA, the DOJ said.
"Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations," said Charles Cain, chief of the SEC Enforcement Division's FCPA unit. "Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence."
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 18, 2024 16:57 ET (21:57 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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