Chinese firm BIT Mining fined $10 million for bribery scheme

Sankunni K November 19, 2024

SiGMA news

BIT Mining Ltd., a Chinese company previously known as 500.com Limited, has agreed to pay $10 million in fines and penalties after U.S. regulators uncovered a bribery scheme involving Japanese government officials. The scheme was part of the company’s efforts to gain approval for a casino resort in Japan.

The Securities and Exchange Commission (SEC) announced a $4 million for violations of the Foreign Corrupt Practices Act (FCPA) from 2017 to 2019. Simultaneously, the U.S. Department of Justice (DOJ) imposed a $10 million . Of that amount, $4 million will be satisfied by the SEC penalty.

The bribery scheme

BIT Mining, headquartered in Shenzhen, China, paid approximately $2.5 million in bribes to Japanese officials, including members of parliament. The bribes included cash, luxury trips, and entertainment, all authorised by a senior executive. Despite these efforts, the company failed to secure its intended casino license and never entered the Japanese market.

Regulatory response

“This case highlights the importance of investor confidence in fair and lawful corporate practices,” said Charles E. Cain, Chief of the SEC’s FCPA Unit. “500.com’s lack of internal controls enabled high-level bribery that undermined market integrity and trust.”

The SEC’s investigation found multiple violations, including inadequate recordkeeping and weak internal accounting systems that failed to detect or prevent misconduct.