Prosecuting Agency:
U.S. Securities and Exchange Commission
Type of Action:
SEC Administrative Proceeding
Docket or Case Number:
3-22324
Name of Prosecuting Attorneys:
Denise Hansberry, SEC Headquarters
Maria Boodoo, SEC Headquarters
Tracy L. Price, SEC Headquarters
US Assisting Agencies:
Unknown
Foreign Enforcement Action/Investigation:
Japanese Law Enforcement Agency (Foreign Enforcement Action)
Foreign Assistance:
Unknown
Origin of the Proceeding:
Unknown
Whistleblower:
Unknown
Case Status:
Resolved
Summary
BIT Mining, Ltd. was a cryptocurrency mining company incorporated in the Cayman Islands and headquartered in Ohio. Prior to 2019, the company operated under the name 500.com Ltd. and was a Chinese online sports lottery company also incorporated in the Cayman Islands but with its principal office in Shenzhen, China. 500.com's securities traded on the New York Stock Exchange and the NASDAQ under the ticker symbol WBAI. Effective April 20, 2021, 500.com changed its NYSE ticker symbol from WBAI to BTCM.
500.com Nihon Co. Ltd. was a wholly owned subsidiary of 500.com, headquartered in Tokyo, Japan. The subsidiary's books, records, and accounts were consolidated into the financial statements 500.com filed with the SEC.
According to the documents in this case, between 2017 to 2019, 500.com engaged in a widespread bribery scheme to influence numerous foreign government officials, including members of Japan’s parliament, in its effort to enter the integrated resort market in Japan. At the time, Japan had recently lifted its longstanding ban on casinos and passed legislation to legalize gambling. A senior executive at 500.com Nihon authorized the payment of approximately $2.5 million in cash, entertainment, and extravagant trips for Japanese officials, and many of these payments were made through third-party consultants. Following a Japanese enforcement action charging the consultants and officials with bribery, 500.com was unable to enter the integrated resort market in Japan. The illicit payments were inaccurately reflected in the company’s books and records.
In a settled administrative proceeding initiated on November 18, 2024, the SEC ordered BIT Mining to cease and desist violations of the anti-bribery, books and records, and internal controls provisions of the FCPA and further ordered the company to pay a civil penalty of $4 million. The SEC noted BIT Mining's cooperation and remediation.
Protected Content
Please Log In or Sign Up for a free account to access restricted features of the Clearinghouse website, including the Advanced Search form and the full case pages.
When you sign up, you will have the option to save your search queries performed on the Advanced Search form.
