As a seasoned crypto investor with a keen eye for the intricacies of the industry, I must confess that news like this leaves me both baffled and disheartened. The blatant violation of laws and ethical standards by BIT Mining’s former CEO is not just unacceptable, but it also tarnishes the reputation of the entire crypto mining sector.
In response to charges of bribe-giving concerning Japanese government officials aimed at obtaining a resort license, BIT Mining has consented to pay a fine of $10 million to U.S. authorities. This company, active in the Bitcoin mining industry, acknowledged breaking the Foreign Corrupt Practices Act by participating in a scheme to offer bribes and altering records.
In accordance with the settlement terms, BIT Mining signed a three-year Deferred Prosecution Agreement (DPA) with both the U.S. Department of Justice and the Securities and Exchange Commission (SEC). The previous CEO, Zhengming Pan, is also under indictment for numerous offenses, such as conspiracy and breaches related to anti-bribery regulations stipulated in the Foreign Corrupt Practices Act (FCPA).
It was disclosed in an official statement that the CEO of BIT Mining, along with some other staff members, allegedly gave approximately $1.9 million worth of bribes to Japanese government officials from 2017 to 2019. These bribes took various forms including cash, travel expenses, entertainment costs, and gifts, which were funneled through intermediaries.
As a crypto investor, my aim was to seal a deal for an integrated Japanese resort. To achieve this, I enlisted the help of external consultants to manage and camouflage bribes, which were presented as legitimate business costs like management consulting fees. Unfortunately, despite our best efforts, we ended up losing the bid for the resort project.
In a statement, US Attorney Philip R. Sellinger for the District of New Jersey said,
It’s a severe offense to give bribes to foreign government officials. It is alleged that the high-ranking executives of BIT Mining (formerly known as 500.com) instructed consultants to bribe Japanese government officials, aiming to secure a bid for opening a large resort in Japan. This unlawful act was initiated at the top, with the CEO reportedly playing an active role in directing these illicit payments and the subsequent attempts to hide them.
In line with its Deferred Prosecution Agreement (DPA), BIT Mining initially consented to a $54 million criminal fine as per the country’s sentencing standards. Yet, due to the company’s financial difficulties, they negotiated with the Department of Justice to lower the penalty to just $10 million.
Furthermore, BIT Mining is eligible for a credit of up to $4 million towards the fine they are paying to the SEC in another case, as part of this settlement.
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2024-11-25 01:34