US
authorities have charged the former CEO of Bitcoin (BTC) mining company from
Wall Street, BIT Mining Ltd. (NYSE: BTCM), with orchestrating a
multimillion-dollar bribery scheme targeting Japanese officials. The company
agreed to pay $14 million in combined penalties to resolve related
investigations.
Former CEO of Wall Street
Bitcoin Miner Indicted
Zhengming
Pan, a Chinese national who led the company when it was known as 500.com, faces
multiple counts of violating the Foreign Corrupt Practices Act (FCPA). A
federal grand jury in New Jersey returned an indictment charging Pan with
conspiracy to violate anti-bribery provisions and books and records violations,
stemming from his alleged direction of approximately $1.9 million in bribes to
Japanese government officials between 2017 and 2019.
The
elaborate scheme, which ultimately failed to secure the desired casino rights,
involved a complex web of third-party consultants who helped facilitate
payments in the form of cash, entertainment, and lavish trips. These
consultants were allegedly engaged by Pan to both execute and conceal the
bribes through fraudulent contracts and false expense recordings.
Principal
Deputy Assistant Attorney General Nicole M. Argentieri emphasized the
significance of the case, stating that the charges demonstrate the department’s
commitment to holding both corporate entities and individual wrongdoers
accountable for their actions. The investigation revealed that the corruption
extended to the highest levels of the company’s leadership.
“BIT
Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay
nearly $2 million in bribes to Japanese government officials to win a contract
to open a lucrative resort and casino in Japan,” commented Argentieri.
The
settlement includes a three-year deferred prosecution agreement (DPA) with the Department
of Justice (DoJ), under which BIT Mining will pay a $10 million criminal
penalty. While the US Sentencing Guidelines initially calculated a penalty of
$54 million, authorities significantly reduced the amount after considering the
company’s financial condition and inability to pay the full amount.
“Paying
bribes to foreign government officials is a serious crime,” added US Attorney
Philip R. Sellinger for the District of New Jersey. “The top leadership of BIT
Mining, then known as 500.com, directed consultants to pay bribes to Japanese
government officials to win a bid to open a large resort in Japan.”
Last year,
the…
