BIT Mining CEO, Zhengming Pan, who previously was in charge of online casino firm 500.com, has been indicted by the US Department of Justice, over lucrative bribery allegations.
Central to the charges are allegations of Pan committing four violations of the Foreign Corrupt Practices Act (FCPA).
Meanwhile, BIT Mining will pay a total of $14m as a result of the charges, entering itself into a deferred prosecution agreement.
However, a federal grand jury in the District of New Jersey returned an indictment against Pan, who has been charged with one count of conspiracy to violate the anti-bribery and books and records provisions of the FCPA, one count of violating the anti-bribery provisions of the FCPA, and two counts of violating the books and records provisions of the FCPA.
Principal Deputy Assistant Attorney General Nicole M Argentieri, Head of the Justice Department’s Criminal Division, stated: “BIT Mining, under the alleged direction of then-CEO Zhengming Pan, agreed to pay nearly $2m in bribes to Japanese government officials to win a contract to open a lucrative resort and casino in Japan.
“Pan has been indicted for his alleged role in directing company consultants to pay the bribes and to conceal the illicit payments through sham consulting contracts. Today’s resolution and the charges against Pan demonstrate the department’s continued commitment to holding both corporate and individual wrongdoers accountable for their crimes.”
The court documents claimed that between 2017 and 2019, BIT Mining, then known as 500.com, admitted that its then-CEO Pan, employees and agents agreed to pay approximately $1.9m in bribes and payments to intermediaries, knowing the money would be used to make bribe payments to Japanese government officials.
The motive was allegedly to help 500.com win a bid to open an integrated resort (a large resort that includes hotels, casinos, retail, dining, convention facilities and entertainment venues) in Japan.
“Paying bribes to foreign government officials is a serious crime. 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,” said US Attorney Philip R Sellinger for the District of New Jersey.
“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 company has admitted its crimes and agreed to pay a $10m penalty, and its then-CEO has been charged for his role in the scheme. This agreement and indictment hold both the corporation as an entity and its top leadership accountable.”
Assistant Director Chad Yarbrough of the FBI Criminal Investigative Division, said: “Today’s indictment against the former CEO of BIT Mining for bribing Japanese officials highlights the FBI’s commitment to holding individuals accountable for illegal conduct.
“This type of criminal activity undermines the integrity of business practices. The FBI will relentlessly pursue those involved in illegal schemes creating unfair advantages and ensure they face the full consequences of the law.”
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