BIT Mining Settles with SEC for $4 Million Amid Bribery Allegations in Japan

Crypto mining firm BIT Mining has agreed to pay a $4 million civil penalty to settle charges brought by the U.S. Securities and Exchange Commission (SEC) for violating the Foreign Corrupt Practices Act (FCPA). The charges stem from allegations that BIT Mining, previously known as the Chinese online betting platform 500.com, engaged in a bribery scheme to influence Japanese government officials.

According to an SEC filing on November 18, the charges relate to payments made between 2017 and 2019. BIT Mining is accused of paying $2.5 million in bribes and gifts to several Japanese officials, including members of Japan's parliament, to secure a bid for an integrated resort casino project. The company allegedly disguised these payments as fake consultant contracts and management advisory fees.

In addition to the SEC settlement, the U.S. Department of Justice (DoJ) announced that BIT Mining has agreed to pay a $10 million criminal fine. Of this amount, $4 million will be credited toward the SEC's civil penalty. The DoJ noted that the scheme involved the company’s CEO, who was reportedly directly involved in directing the illegal payments and efforts to conceal them.

U.S. Attorney Philip R. Sellinger, of the District of New Jersey, stated, “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 DoJ also confirmed that BIT Mining acknowledged a potential criminal penalty of $54 million under the U.S. Sentencing Guidelines. However, the fine was reduced to $10 million, taking into account the company’s financial situation and inability to pay the full penalty. Additionally, BIT Mining entered into a three-year deferred prosecution agreement with the DoJ, resolving charges related to conspiracy to violate anti-bribery laws and the FCPA’s books-and-records provisions.

This settlement marks the end of a lengthy investigation into BIT Mining’s activities, and the company will now work to comply with the terms set by both the SEC and the DoJ.