BIT Mining Settles $10 Million FCPA Bribery Case with SEC And DOJ: Report

BIT Mining Ltd., formerly 500.com Limited, will pay $10 million to settle charges relating to a bribery scheme that violated the US Foreign Corrupt Practices Act (FCPA). The $10 million fine includes a $4 million civil penalty imposed by the U.S. Securities and Exchange Commission (SEC). Furthermore, a $6 million criminal fine was set with the U.S. Department of Justice (DOJ).

According to a recent report, these penalties relate to the company’s attempt to bribe foreign officials, some of whom are members of the Japanese Diet. The purpose of the campaign was to shape decision-making regarding the development of a casino resort in Japan from 2017 to 2019.

BIT Mining Bribery Scheme

According to the SEC’s order, 500.com, the predecessor of BIT Mining, paid about $2.5 million in bribes. These payments were in the form of cash bribes, holidays, and entertainment to Japanese officials. The scheme was approved by the company’s high managers to gain political influence for the casino project.

Nevertheless, 500.com has not even been able to penetrate to the Japanese market despite the scale of the bribery scheme it controlled. Following the scandal related to bribery, the company stopped the attempts to further the cause of the casino project. The SEC’s investigation also showed that the company had weak internal controls to permit the scheme to run without hindrance.

SEC Chief’s Statement

According to Charles E. Cain, Chief of the SEC’s FCPA Unit, his focus is on preventing corruption in the business environment. He stated: 

“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.”

BIT Mining has not denied the charges and has agreed to the SEC’s conclusions and covenants to refrain from further violating the FCPA’s anti-bribery, record-keeping, and internal accounting controls provisions. The civil penalty is in line with measures being taken to enforce compliance with United States laws and protect investors against fraud.

Advertisement Banner

Company Agrees to Settle

The settlement also contains a deferred prosecution agreement with the Department of Justice. As part of the agreement, BIT Mining has agreed to pay a $10 million criminal fine with $4 million being covered by the SEC’s civil penalty. This is the final phase of the investigation of the company’s activities.

The SEC’s investigation was conducted by Denise Hansberry and Maria F. Boodoo with supervision from Tracy L. Price of the FCPA Unit. According to them, the total lack of internal controls in 500.com meant that high-ranking officials could approve the suspected payments.

U.S. Government’s Anti-Corruption Stance

The case also shows that the U.S government is willing to fight against international bribery. The SEC and DOJ are, therefore, on the lookout for firms that have violated the anti-corruption laws and are putting pressure on international businesses. The penalties are per the severity of the contraventions. All these actions show that the U.S. government is aspiring to uphold ethical standards.

This case is important because it demonstrates the need for organizations to enhance compliance programmes and governance structures. BIT Mining’s FCPA violations call for fighting corruption within an organization at all levels. Today, business organizations face higher expectations in terms of accountability and integrity in their business operations.

BIT Mining’s settlement should be seen as a message for other companies that operate in the international markets. The huge fines and penalties reveal that the U.S. government will persistently enforce anti-bribery laws even in foreign companies.

The decision to fine BIT Mining $10 million is a sign that ethical practices are becoming more and more crucial in the world market. This comes as a sobering lesson for companies to ensure they meet the highest standards of corporate governance and failure to do so will attract legal and financial consequences.

Stay tuned to TheBITJournal and keep an eye on Crypto’s updates. Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!