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ToggleBribery amount reached $2.5 million, targeting the Japanese gambling market
According to the SEC investigation, BIT Mining (formerly 500.com) bribed Japanese lawmakers with a total of $2.5 million between 2017 and 2019 in order to enter the Japanese gambling market. This included cash bribes, lavish entertainment, and high-cost travel expenses, all with the aim of getting the lawmakers to support BIT Mining's plan to establish an "integrated resort casino", but the project ultimately fell through due to the scandal being exposed.
BIT Mining is a cryptocurrency mining company headquartered in Shenzhen, China. It initially focused on online sports lottery as its main business, but transitioned to mining in 2021. Its current business covers cryptocurrency mining, mining pool operations, and mining machine production, and it owns three hydropower mining farms and operates an 82.5MW mining data center in Ohio, USA. As of September 20, 2024, the company's market value is around $2.489 billion.
Insufficient internal controls became a breeding ground for bribery, the U.S. authorities fined $10 million
The SEC stated that this case reflects serious deficiencies in BIT Mining's internal accounting, which not only failed to exercise strict control, but actually allowed the top management to implement a bribery scheme. It emphasized that the company should rely on its own business strength, and not engage in illegal activities to manipulate the market.
BIT Mining has reached a settlement agreement with the SEC and agreed not to repeat the offense. It has also signed a Deferred Prosecution Agreement with the U.S. Department of Justice, and will pay a $10 million fine, of which $4 million will be used to fulfill the SEC's penalty requirement.
