Bitmining Agrees to Pay $10 Million in Controversial Japanese Resort Bribery Case

BIT Mining has reached a settlement with United States authorities, agreeing to pay $10 million in fines over bribery claims involving officials from the Japanese government aimed at acquiring resort licenses. This Bitcoin mining company acknowledged breaking the Foreign Corrupt Practices Act (FCPA) due to its involvement in bribing officials and falsifying documentation.

Under the terms of this agreement, BIT Mining has entered into a three-year Deferred Prosecution Agreement (DPA) with the U.S. Department of Justice and the Securities and Exchange Commission (SEC). Former CEO Masaaki Ban is also facing various charges, including conspiracy and infractions of the FCPA’s anti-bribery rules.

According to an official press release, BitMining’s then-CEO and other staff members made payments totaling approximately 1.9 million yen, which included cash, travel expenses, entertainment, and gifts to Japanese officials through intermediaries between 2017 and 2019. It was uncovered that a bribe was paid in U.S. dollars.

The intention behind these actions was to secure a bid for a comprehensive resort in Japan. Mr. Pan engaged third-party consultants to execute and mask these bribery payments, presenting them as legitimate business costs, such as management consulting fees. Regardless of these tactics, the company ultimately did not succeed in securing the resort project.

Philip R. Selinger, U.S. Attorney for the District of New Jersey, remarked:

“Bribing foreign government officials is a grave offense. The leadership at BIT Mining, previously known as 500.com, hired consultants to bribe Japanese officials in pursuit of bids for major resort developments in Japan. This unlawful operation was orchestrated from the top with the CEO deeply involved in directing these payments and the subsequent attempts to cover them up.”

As a condition of the Deferred Prosecution Agreement (DPA), BIT Mining initially consented to a $54 million criminal fine in accordance with national sentencing protocols. However, due to financial strains, a reduction to $10 million was negotiated between the company and the Department of Justice.

Furthermore, BIT Mining will be eligible for a credit of up to $4 million towards civil penalties related to the SEC in connection with an ongoing separate investigation.