Gambling operator 500.com has announced that Friedman LLP has resigned as its auditor and appointed MaloneBailey, LLP on September 27, 2020.

Friedman has elected to resign as the auditors of the Company because of the disagreement with the management of the Company on the effectiveness of the Company’s internal control over financial reporting in light of certain alleged unlawful payments by three former consultants while they were engaged by the Company in connection with the potential development of an integrated casino resort project in Japan.

The Company is not involved in any legal proceeding in Japan but has treated the allegations seriously.  As announced by the Company in its December 31, 2019 and January 16, 2020 press releases furnished to the SEC on Form 6-K, the Special Investigation Committee of the Company’s Board of Directors engaged King & Wood Mallesons to investigate the money transfers and the related conduct of the Company’s Japanese consultants.