The US Securities and Exchange Commission (SEC) has announced that BIT Mining Ltd., formerly known as 500.com Limited, will pay a civil penalty of $4 million to settle charges of violating the Foreign Corrupt Practices Act (FCPA) as part of a $10 million penalty.
The former CEO of 500.com, Zhengming Pan, has also been indicted on multiple charges related to the FCPA violations.
500.com was an online sports lottery service provider headquartered in Shenzhen, China, whose shares traded on the New York Stock Exchange under the symbol WBAI.
The violations stem from a bribery scheme that occurred between 2017 and 2019, aimed at influencing members of Japan’s parliament in an effort to establish a casino in Japan.
The SEC’s findings allege that BIT Mining engaged in illicit payments totaling approximately $2.5 million, which included cash bribes, entertainment, and luxury trips. These bribes were sanctioned by a senior executive of the company.
Despite the extensive bribery efforts, BIT Mining ultimately did not win the bid for an integrated resort.
“Investors must have confidence that the operations and performance of public companies reflect merit and legitimate considerations. Bribery and corruption distort the orderly operation of the markets and undermine investor confidence”, stated Charles E. Cain, Chief of the SEC Enforcement Division’s FCPA Unit in the decision.
He emphasized that BIT Mining’s inadequate controls allowed a bribery scheme involving top executives and influential Japanese officials to thrive.
In addition to the SEC’s civil penalty, the US Department of Justice (DOJ) has also entered into a deferred prosecution agreement (DPA) with BIT Mining, which includes a $10 million criminal fine. Of this amount, $4 million will be covered by the SEC’s civil penalty.
Zhengming Pan indicted

The former CEO of 500.com, Zhengming Pan, has been indicted on multiple charges related to the FCPA violations. The indictment, unsealed yesterday, accuses Pan of conspiring to violate anti-bribery provisions, as well as failing to maintain accurate books and records.
“Paying bribes to foreign government officials is a serious crime”, District of New Jersey US Attorney Philip R. Sellinger said in a recent statement concerning the case. “The top leadership of BIT Mining directed consultants to pay bribes to Japanese government officials to secure a bid for a large resort in Japan. This agreement and indictment hold both the corporation and its leadership accountable.”
According to court documents, between 2017 and 2019, BIT Mining, under the direction of Pan, agreed to pay around $1.9 million in bribes, knowing the funds would be used to influence Japanese officials. The scheme included the use of cash, travel, entertainment, and gifts, concealed through sham contracts and false accounting.
As part of the DPA, BIT Mining acknowledged that the appropriate criminal penalty under US Sentencing Guidelines would typically be $54 million. However, due to the company’s financial situation, the penalty was reduced to $10 million.
BIT Mining has committed to cooperating with ongoing investigations and enhancing its compliance programs. The DOJ said its resolution was influenced by the company’s cooperation, which included voluntarily providing documents and other information.
The FBI’s International Corruption Unit is also actively investigating the case, with prosecution led by Assistant US Attorney Jennifer Kozar and Trial Attorneys from the Criminal Division’s Fraud Section.