Chinese mining company BIT Mining bribes Japanese officials to open a casino, fined $4 million by U.S. SEC

The U.S. Securities and Exchange Commission (SEC) recently fined Chinese mining company BIT Mining $4 million for allegedly bribing Japanese lawmakers with $2.5 million.

High Bribery Amount of $2.5 Million Targeting the Japanese Gambling Market

According to the SEC investigation, BIT Mining, formerly known as 500.com, bribed Japanese parliament members with a total of $2.5 million between 2017 and 2019 to enter the Japanese gambling market. The bribes included cash payments, lavish entertainment, and high-end travel expenses, all aimed at gaining support from the parliament members for BIT Mining to open a "comprehensive resort casino." However, the project was eventually scrapped after the scandal was exposed.

BIT Mining is a cryptocurrency mining company headquartered in Shenzhen, China. Initially focused on online sports lottery, it transitioned into a mining company in 2021. Its current business includes cryptocurrency mining, pool operation, mining machine production, and it owns three hydropower mining farms. It also operates an 82.5-megawatt mining data center in Ohio, USA. As of September 20, 2024, the company's market value is approximately $2.489 billion.

Inadequate Internal Controls Leading to Bribery, US Prosecutors Fine $10 Million

The SEC stated that this case reflects serious deficiencies in BIT Mining's internal accounting controls, allowing senior management to carry out the bribery scheme without proper oversight. It also emphasized that companies should rely on their business capabilities and not engage in illegal activities to operate in the market.

BIT Mining has reached a settlement agreement with the SEC and agreed not to repeat the offense. It also signed a Deferred Prosecution Agreement with the US Department of Justice and agreed to pay a $10 million fine, with $4 million of it to fulfill the SEC's penalty requirements.

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