SEC Charges BIT Mining with FCPA Violations in Connection with Bribery Scheme to Influence Members of Japanese Parliament
summary
BIT Mining Ltd. agreed to pay $14 million in penalties to resolve FCPA charges involving a $2.5 million bribery scheme to secure a Japanese casino project.
paragraph
BIT Mining Ltd. violated the FCPA by authorizing approximately $2.5 million in illicit payments to influence Japanese officials for an integrated resort casino. The company faces a $4 million SEC civil penalty and a $10 million criminal fine through a DOJ deferred prosecution agreement. These charges address violations of anti-bribery, recordkeeping, and internal accounting control provisions.
narrative
BIT Mining Ltd., formerly known as 500.com Limited, engaged in a widespread bribery scheme between 2017 and 2019 to influence Japanese officials, including members of parliament, to establish an integrated resort casino. The company authorized approximately $2.5 million in illicit payments consisting of cash, entertainment, and extravagant trips. To resolve these FCPA violations, BIT Mining agreed to a $4 million SEC civil penalty and a $10 million criminal fine via a parallel deferred prosecution agreement with the Department of Justice. The SEC order found that the company's deficient internal controls enabled the scheme, which was authorized by a senior executive. Ultimately, the company failed to enter the Japanese market despite the significant investment. BIT Mining has consented to the order and agreed to cease and desist from future violations.
Classified public-corruption(confidence 99%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →
Parties
bit miningbit mining ltdbribery schemedeferred prosecution agreementDepartment of Justicesec’s order finding it violated anti-bribery provisions
Keywords
bribery schemesecbriberybitminingfcpaschemescheme influencecivil penaltycommillionordermining fcpafcpa connectionconnection bribery
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 3
- $10.00M $10 million $10M–$100M
- $4.00M $4 million $1M–$10M
- $2.50M $2.5 million $1M–$10M
Entities 6
- person bit mining
- company bit mining ltd
- person bribery scheme
- person deferred prosecution agreement
- agency Department of Justice
- agency sec’s order finding it violated anti-bribery provisions
Triples 6
- BIT Mining Ltd Agreed To Pay $4 Million Civil Penalty
- BIT Mining Consented To SEC’s Order Finding It Violated Anti-Bribery Provisions
- U.S. Department Of Justice Announced It Has Entered Into Deferred Prosecution Agreement
- BIT Mining Agreed To Pay $10 Million Criminal Fine
- 500.com Senior Executive Authorized Bribes
- Bribery Scheme Involved Illicit Payments Of Approximately $2.5 Million
PDF (from attached: pdf)
Text layers
Extracted body text (2,361c)
The Securities and Exchange Commission today announced that BIT Mining Ltd., formerly known as 500.com Limited, agreed to pay a $4 million civil penalty to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) from 2017 to 2019 by engaging in a widespread bribery scheme to influence numerous foreign officials, including members of Japan’s parliament, in efforts to establish an integrated resort casino in Japan. 500.com was an online sports lottery service provider headquartered in Shenzhen, China, whose shares traded on the New York Stock Exchange under the symbol “WBAI.” The SEC’s order finds that the bribery scheme involved illicit payments of approximately $2.5 million in the form of cash bribes, entertainment, and extravagant trips. The order further finds that the bribes were authorized by a 500.com senior executive and that, after the bribery scheme came to light, the company never entered the market. “Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations. Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. “Here, 500.com’s deficient controls fostered an environment that enabled a bribery scheme involving the highest level of the company and influential Japanese officials. This case underscores the need for robust internal accounting controls that are properly implemented and effective throughout an organization.” BIT Mining consented to the SEC’s order finding that it violated the anti-bribery, recordkeeping, and internal accounting controls provisions of the FCPA. BIT Mining has agreed to cease and desist from committing or causing any violations and any future violations of these provisions and to pay the civil penalty mentioned above. In a parallel action, the U.S. Department of Justice announced today it has entered into a deferred prosecution agreement in which BIT Mining agreed to pay a $10 million criminal fine, of which $4 million will be satisfied by the company’s payment of a civil penalty pursuant to the SEC’s order. The SEC’s investigation was conducted by Denise Hansberry and Maria F. Boodoo and supervised by Tracy L. Price of the SEC’s FCPA Unit.
OCR text (2,361c · html-text · 99% conf)
The Securities and Exchange Commission today announced that BIT Mining Ltd., formerly known as 500.com Limited, agreed to pay a $4 million civil penalty to resolve charges that it violated the Foreign Corrupt Practices Act (FCPA) from 2017 to 2019 by engaging in a widespread bribery scheme to influence numerous foreign officials, including members of Japan’s parliament, in efforts to establish an integrated resort casino in Japan. 500.com was an online sports lottery service provider headquartered in Shenzhen, China, whose shares traded on the New York Stock Exchange under the symbol “WBAI.” The SEC’s order finds that the bribery scheme involved illicit payments of approximately $2.5 million in the form of cash bribes, entertainment, and extravagant trips. The order further finds that the bribes were authorized by a 500.com senior executive and that, after the bribery scheme came to light, the company never entered the market. “Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations. Bribery and corruption turn that dynamic on its head, distorting the orderly operation of the markets and undermining investor confidence,” said Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit. “Here, 500.com’s deficient controls fostered an environment that enabled a bribery scheme involving the highest level of the company and influential Japanese officials. This case underscores the need for robust internal accounting controls that are properly implemented and effective throughout an organization.” BIT Mining consented to the SEC’s order finding that it violated the anti-bribery, recordkeeping, and internal accounting controls provisions of the FCPA. BIT Mining has agreed to cease and desist from committing or causing any violations and any future violations of these provisions and to pay the civil penalty mentioned above. In a parallel action, the U.S. Department of Justice announced today it has entered into a deferred prosecution agreement in which BIT Mining agreed to pay a $10 million criminal fine, of which $4 million will be satisfied by the company’s payment of a civil penalty pursuant to the SEC’s order. The SEC’s investigation was conducted by Denise Hansberry and Maria F. Boodoo and supervised by Tracy L. Price of the SEC’s FCPA Unit.