| Related Party Transactions and Balances |
14. Related Party Transactions and Balances
Related Parties
| Name of related parties | | Relationship with the Company | | Qingfeng Wu (Mr. Wu) | | Founder, chief executive officer, director, and principal shareholder | | Qiuhua Li (Mr. Li) | | Founder, executive chairman of the board of directors, director, and principal shareholder | | Shenzhen Bgin Tech Co., Ltd. (“SZ Bgin”) | | Entity controlled jointly controlled by Shao Qi (Mr. Shao) and Mr. Li | | Igvault HK limited (“IGV HK”) | | Entity controlled by Mr. Li’s spouse | | Icing Trading Limited | | Entity controlled by Mr. Wu | | CoinPal Limited | | Entity controlled by Mr. Li, who acquired the entity in April 2025. |
Related Party Transactions
The Company had the following
related party transactions:
| (i) | During the year ended December 31, 2025, the Company incurred technical development and maintenance services,
including core research and development activities, supplemented by certain administrative support services and provision of workspace
facilities, from SZ Bgin in the amount of US$420,000 (2024: US$660,000, 2023: US$711,846) and made payments in the amount of US$420,000
(2024: US$660,000, 2023: US$591,846), with no remaining outstanding due to related party balance as of December 31, 2025 and 2024. |
| (ii) | During the year ended December 31, 2025, the Company incurred management consulting services from IGV
HK in the amount of US$169,062 (2024: US$97,157, 2023: US$70,668) and made full payments in the amount of USDT 169,062 (equivalent of
US$169,062) (2024: US$97,157, 2023: US$70,668), with no remaining outstanding due to related party balance as of December 31, 2025 and
2024. |
| (iii) | During the period from April 10, 2025 to December 31, 2025, CoinPal Limited collected cryptocurrencies
from the Company’s customers on behalf of the Company in the amount of USDT 14,606,943 (equivalent of US$ 14,606,943) and remitted
cryptocurrencies to the Company in the amount of USDT 15,200,040 (equivalent of US$ 15,200,040), with due from related party balance of
USDT 949,914 (equivalent of US$949,914) as of December 31, 2025. For each payment collected from the Company’s customers on behalf
of the Company, CoinPal Limited charged the Company processing fees of 0.8% of the total payment amount. During the period from April
10, 2025 to December 31, 2025, the Company incurred processing fees in the amount of USDT 117,835 (equivalent of US$117,835). All processing
fees incurred during the current year were fully paid with no outstanding due to related party balance as of December 31, 2025. |
| (iv) | During the year ended December 31, 2025, the Company received loan repayment from Mr. Wu in the amount
of USDT 68,238 (equivalent of US$68,238), with no outstanding due from related party balance as of December 31, 2025. |
| (v) | During the year ended December 31, 2025, the Company received loan repayment from Mr. Li in the amount
of USDT 33,098 (equivalent of US$33,098), with no outstanding due from related party balance as of December 31, 2025. |
The Company’s due from
related party balances as of December 31, 2025 and 2024 are as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| | |
US$ | | |
US$ | |
| Qiuhua Li | |
| — | | |
| 33,098 | |
| Qingfeng Wu | |
| — | | |
| 68,238 | |
| CoinPal Limited | |
| 949,914 | | |
| * | |
| Total | |
| 949,914 | | |
| 101,336 | |
| * | CoinPal became a related party only after Mr. Li acquired
100% of its equity in April 2025; therefore, the 2024 balance is not presented. |
The due from related party
balances associated with Mr. Li and Mr. Wu as of December 31, 2024 are unsecured, interest-free and due on demand.
Due to related party balance
The Company’s due to
related party balances as of December 31, 2025 and 2024 are as follows:
| | |
December 31,
2025 | | |
December 31,
2024 | |
| | |
US$ | | |
US$ | |
| Icing Trading Limited | |
| 23,781 | | |
| 10,363 | |
| Total | |
| 23,781 | | |
| 10,363 | |
The due to related party
balances as of December 31, 2025 and 2024 are related to the payments Icing Trading Limited made to the vendors on behalf of the
Company and the related service fees.
During the year ended December 31,
2023, the Company received a short-term loan with the principal amount of USDT 2,000,000 from each of Mr. Wu and Mr. Li.
Both loans had a term of three months and bearing an annual interest rate of 3.65%. Both loans had been fully repaid to Mr. Wu and
Mr. Li before December 31, 2023.
|