The former CEO of online sports lottery site 500.com-turned cryptocurrency mining project BIT Mining is the subject of a bribery investigation by US officials. Zhengming Pan faces four Foreign Corrupt Practices Act (FCPA) charges, the law preventing US citizens or entities from giving bribes to international government officials.
BIT Mining will pay $6m to the Department of Justice and $4m to the SEC after entering a prosecution agreement over its two FCPA breaches. The company allegedly paid $1.9m in bribes to government officials in Japan to try to win an integrated resort casino license.
tried hiding the payments through fake consulting contracts
Pan allegedly ordered directors to do so; they tried hiding the payments through fake consulting contracts. Incentives included cash, luxurious vacations, and other forms of entertainment.
500.com ultimately didn’t receive one of the three available IR licenses, with MGM Resorts International the only company receiving a permit to date.
Talking about the case, SEC Enforcement Division’s FCPA Unit Chief Charles Cain said that corruption distorts “the orderly operation of the markets and undermines investor confidence.”