BBC programme Newsnight alleged that the money was paid by an Azeri national to the International Amateur Boxing Association´s (AIBA) subsidiary World Series of Boxing (WSB) competition.[break]
The money was allegedly in return for guaranteed Azeri gold medals at the Games.
AIBA president Dr Ching Kuo Wu told the BBC Newsnight programme: "Thanks for informing us about this information. I will immediately conduct an investigation into this because there is a zero tolerance policy in AIBA."
The AIBA and WSB later issued a joint-statement, insisting the allegations were "preposterous and utterly untrue" and that a loan agreed between a Swiss investment company and the WSB was above board.
"Any suggestion that the loan was made in return for promises of gold medals at the 2012 Olympics is preposterous and utterly untrue," said the AIBA and WSB.
"The AIBA and WSB believe that such allegations have been made by individuals with an axe to grind, who are totally discredited.
"As well as unjustifiably imputing corruption to AIBA/WSB, they demonstrate a complete misunderstanding of the procedures which lead to the award of Olympic boxing medals and the impossibility of influencing these."
BBC Newsnight had uncovered evidence of secret payments of millions of dollars from Azerbaijan to international boxing organisation WSB.
The boxing organiser at the Olympics, AIBA, admitted an Azeri national paid $9m to one of their competitions. But they deny any deal to fix medals.
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