BIT Mining Ltd., formerly known as 500.com Limited has agreed to pay a USD4 million civil penalty to resolve a civil claim that it breached 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 states that the bribery scheme involved illicit payments of approximately $USD.5 million in the form of cash bribes, entertainment and extravagant trips. The order further states 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 broke the anti-bribery, record-keeping, and internal accounting controls provisions of the FCPA. BIT Mining has agreed to cease and desist from committing or causing any breaches and any future breaches 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 USD10 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.