Following the surged adoption of cryptocurrencies, mining has evolved as one of the highest-earning subsectors of the digital assets market.
According to recent information, BIT Mining, a Bitcoin mining company, has accepted that it paid bribes to Japanese officials to get licenses from resorts and casinos in Japan. To settle the charges, the firm agreed to pay a fine of $10 million to the United States government.
Additional information notes that the bribery incident took place between 2017 to 2019 when it was known as 500(dot)com.
According to a statement of the United States Securities and Exchange Commission dated November 18, 2024, the bribe offered to Japanese politicians consists of $2.5 million in illicit cash, trips, and other extravagant activities to lure officials into getting licenses.
In the settlement agreement, BIT Mining has agreed to pay the Department of Justice (DOJ) a criminal penalty of $10 million and the U.S. SEC around $4 million in civil penalties. It is worth noting that 500(dot)com was an online Chinese game lottery company, which was also charged with its CEO, Zhengming Pan, for orchestrating bribes.
According to experts, bribing officials might stir the sentiments of common investors about public-listed companies, which are supposed to work with integrity and merit.
In the statement the SEC chief said “Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence”.
The now finalized penalty amount in BIT Mining cases is decided based on the company’s financial condition and capability to pay a fine. As per the rule, the penalty for such a case could be $54 million, but the authorities have loosened the regime.
SEC will continue its same attitude after the appointment of a new chair!
As it is broadly discussed, the recent historical victory of Donald Trump is expected to change the entire future paths for the cryptocurrency market.
The market is also expected to get its new SEC chief in the coming times, as Trump is seen as pro-crypto president, and in a speech this year he said he would fire Gary Gensler soon after his victory.
Per broader speculations, the list of new heads of the SEC Chief is led by the legal officer of Robinhood Crypto. However, the confirmation to appoint anyone else is not clarified by Trump’s administration yet.
To date, the rumored nominees for the position of SEC Chair primarily come from within the crypto industry. Some experts argue that the significant political donations made by the crypto sector during the recent elections may influence the selection process for the commission’s next chairman.
Political analysts highlight that the crypto industry was one of the largest contributors to the recent U.S. elections, second only to the fossil fuel sector. A substantial portion of these funds supported Donald Trump, potentially signaling a shift in the nation’s stance on digital assets and decentralized technologies.
While these speculations abound, no official confirmation has been made regarding the final candidate for the role. Gary Gensler’s approach to crypto regulation has severely damaged his reputation within the digital assets community, with many labeling him as the “villain of crypto.”
