Pinduoduo is in the spotlight after a controversy erupted Monday involving the company and an equally controversial WeChat media account, which accused the social e-commerce upstart of facilitating illicit gambling transactions.

Chaping, literally Bad Reviews, posted an article Sunday night saying Pinduoduo’s lack of enforcement has allowed gambling payment channels, in the form of regular e-commerce stores, to develop on its platform by offering means to transmit gambling transactions.

The Shanghai-based company denounced the “downright groundless” accusations in an emailed announcement sent to TechNode, saying it will file a defamation lawsuit against Chaping seeking RMB 10 million (around $1.5 million) in damages.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.