- BIT Mining agrees to pay $10M for bribery linked to efforts to secure political support in Japan.
- SEC and DOJ penalties highlight internal failures that enabled $2.5M in bribes by BIT Mining’s predecessor.
- U.S. government intensifies anti-corruption enforcement, emphasizing corporate accountability worldwide.
BIT Mining Ltd. a company that formerly traded under the name 500.com Limited has agreed to pay $10 million for violating the Foreign Corrupt Practices Act (FCPA). The sanctions consist of a $4 million civil penalty by the Securities and Exchange Commission and a $6 million criminal fine by the Department of Justice.
According to a recent report, the fines are linked to the company’s efforts to offer lucrative packages to foreign officials, including members of the Japanese parliament, to promote a casino project in Japan between 2017 and 2019. The SEC pointed out that, its subsidiary BIT Mining’s earlier company 500.com paid $2.5m in bribes in the form of cash, expensive holidays and entertainment to secure the political support it needed.
BIT Mining Bribery Scandal
Nevertheless, the huge bribery campaign was not enough for 500.com to penetrate the Japanese market. The scandal led to the company to cancel the casino project it was undertaking. The SEC’s investigation also pointed out that there was lack of internal control measures that would have prevented the briber scheme to be carried out.
SEC FCPA Unit Chief Charles E. Cain underscored that the commission aims to protect the market. ”Bribery and corruption are bad for markets because they disrupt their proper functioning and are a deterrent to investors,” Cain added. He noted that internal weakness of BIT Mining allowed the misconduct to occur since the company had problems.
The settlement agreement imposes on BIT Mining the obligation to cease any further violations of the FCPA provisions, the anti-bribery provisions inclusive of internal accounting controls provisions. The civil penalty is in congrinuity with the US regulatory measures to enforce compliance and safeguard investors. The DOJ’s deferred prosecution agreement also shows that corporate responsibility is very important.
U.S. Targets Global Bribery
In the bribery case, senior executives at 500.com signed off the payments that were made. Hansberry and Boodoo, assisted by Tracy L. Price, found how the systematic failures allowed the illicit practices to occur.
This case shows how the U.S. government is keen on fighting international bribery. Supervisory authorities such as the SEC and the DOJ persist in their efforts to require businesses around the world to obey anti-corruption rules,
