A federal grand jury has indicted Zhengming Pan, the former CEO of BIT Mining Ltd. (formerly 500.com), on charges related to bribing Japanese government officials as part of a scheme to secure a lucrative resort and casino project in Japan. Pan, a Chinese national, faces multiple violations of the Foreign Corrupt Practices Act (FCPA), including conspiracy to violate anti-bribery and books-and-records provisions.
BIT Mining (NYSE: BTCM) is a company focused on cryptocurrency mining, data center management, and the production of mining equipment. As stated on their website, the company engages in self-mining activities, which they believe will bolster their resilience in the marketplace by utilizing both in-house developed and acquired mining machines to effectively respond to the fluctuating prices of cryptocurrencies. Additionally, they highlight their ownership of advanced 7 nm BTC chips and their robust expertise in developing miners for LTC/DOGE and ETC.
BIT Mining, which has agreed to resolve investigations by the U.S. Justice Department and the Securities and Exchange Commission (SEC), has entered into a three-year deferred prosecution agreement (DPA) over the scheme. The company has admitted to paying nearly $2 million in bribes between 2017 and 2019, aimed at influencing Japanese officials to win a bid for an integrated resort. Despite these efforts, BIT Mining ultimately did not secure the project.
“The leadership of BIT Mining, under the direction of CEO Zhengming Pan, orchestrated a plan to bribe government officials in Japan to win a major business contract,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri. “Today’s indictment of Pan and the resolution with BIT Mining demonstrate our continued commitment to holding individuals and corporations accountable for corruption.”
The indictment, filed in the District of New Jersey, charges Pan with conspiracy to violate the FCPA, as well as two counts of falsifying books and records. The charges stem from Pan’s alleged role in directing company consultants to make bribe payments and conceal those payments through fake contracts.
According to court documents, Pan and others at the company arranged bribes in the form of cash, travel, entertainment, and gifts to intermediaries, knowing the money would be passed on to Japanese officials. The company allegedly disguised these payments as legitimate business expenses, such as management advisory fees, in an effort to hide the bribes from regulators and auditors.
“Bribing foreign officials undermines fair business practices and the integrity of global markets,” said U.S. Attorney Philip R. Sellinger. “This case highlights the Justice Department’s commitment to holding individuals accountable for illegal conduct, especially when it involves top executives directing illicit activities and covering them up.”
Under the DPA, BIT Mining has agreed to pay a $10 million criminal penalty, reduced from an initial $54 million due to the company’s financial condition. The company has also agreed to continue cooperating with ongoing investigations and to implement enhanced compliance measures over the next three years.
The Justice Department credited BIT Mining for its cooperation, including voluntarily providing documents and data from foreign jurisdictions, and for taking remedial actions such as strengthening governance, conducting anti-corruption training, and transitioning to lower-risk business areas.
The investigation was led by the FBI’s International Corruption Unit. “The FBI will continue to pursue individuals involved in these illegal schemes and hold them fully accountable,” said FBI Assistant Director Chad Yarbrough.
The case reflects broader efforts by U.S. authorities to combat foreign bribery and corruption, including a growing focus on individual accountability at the highest levels of corporate leadership.
