Pan Zhengming, former CEO of BIT Mining (formerly 500.com), faces multiple charges in the United States for involvement in an international corruption scheme. The U.S. Department of Justice (DOJ) revealed that Pan led a three-year campaign (2017–2019) involving approximately $1.9 million in bribes to Japanese officials. The aim was to secure one of the licenses for integrated resorts (IR), a project including hotels and casinos planned by the Japanese government.
Pan Zhengming is a Chinese businessman who served as CEO of 500.com, a company that initially operated as an online lottery provider in China before rebranding as BIT Mining.
Charges and legal measures
Pan was formally accused of four violations of the Foreign Corrupt Practices Act (FCPA), including conspiracy to bribe and falsifying financial records. BIT Mining agreed to cooperate with investigations and pay a reduced fine of $10 million, considering its current financial state. This amount includes $4 million allocated to the U.S. Securities and Exchange Commission (SEC) as part of a civil settlement.
The bribes were concealed through fictitious consultancy contracts and gifts such as trips and entertainment. These actions violated anti-corruption laws and undermined the company’s business transparency.
Impact in Japan
In Japan, the case had significant repercussions, directly affecting the country’s casino expansion projects. Tsukasa Akimoto, then minister responsible for IR policies, was sentenced in 2021 to four years in prison for accepting approximately ¥7.6 million ($70,000) in bribes. He also attempted to interfere with witness testimony. This crisis delayed Japan’s plans for implementing resorts and tarnished the reputation of related government policies.
Originally, 500.com excelled in the Chinese market as a pioneer in online lotteries. However, the 2015 ban on this sector in China forced the company to seek new revenue streams abroad. Its attempt to expand into the Japanese market was derailed by the corruption scandal, damaging its global reputation and financial stability.
The BIT Mining case highlights the risks of poor ethical management in global corporations. The pursuit of profits and alternative markets cannot overshadow legal compliance and corporate integrity. This episode also underscores the importance of monitoring international corporate governance practices to prevent similar schemes in the future.
The next SiGMA event is approaching, and the next one is in Dubai! Find more information about SiGMA Eurasia by clicking here.
