Company: OCG
Filing Date: 2025-12-11
Form Type: 424B5
Source: 0001213900-25-120719
Chunk: 68

Company: Oriental Culture Holding LTD
Filing Date: 2025-12-11
Form: 424B5
Chunk 68
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 arrest of Mr. Gao and Mr. Kong with charge of illegal business operation of Nanjing Jinwang Art Purchase E-commerce Co., Ltd., a
company controlled by Mr. Gao and Mr. Kong (“Nanjing Jinwang”). On July 1, 2022, the bank accounts of Nanjing Jinwang were
frozen by Nan County Public Safety Bureau, including a trust account into which the customers of the Company deposit their security deposits
in order to trade on the Company’s two online trading platforms which the Company has entrusted Nanjing Jinwang for escrow.

Also, on July 1, 2022, Nan County Public Safety
Bureau froze certain bank accounts of Kashi Longrui Business Management Services Co., Ltd. (“Kashi Longrui”), Kashi Dongfang
Cangpin Culture Development Co., Ltd. (“Kashi Dongfang”) and Nanjing Yanyu Information Technology Co., Ltd. (“Nanjing
Yanyu”), all subsidiaries of Jiangsu Yanggu Culture Development Co., Ltd., the variable interest entity of the Company in China
(the “VIE”) because they, each had business relationship with Nanjing Jinwang.

Neither the Company nor
its VIE or subsidiaries of its VIE has received any notification for enforcement charges from Nan County Public Safety Bureau, other
than cash and short term investment in the frozen bank accounts with balances totaling approximately $16.5 million and due from Nangjng
Jinwang of approximately $3.4 million relating to the Nanjing Jinwang investigation as described above as of December 31, 2022. Currently
the customers can freely transfer their deposits through the bank and make their withdrawals based on their actual needs. Mr. Gao and
Mr. Kong are not officers, directors or employees of the Company, its VIE or subsidiaries of the VIE.

Due to the investigation of Nanjing Jinwang
and frozen bank accounts, the business operations of the Company have been materially and negatively impacted as its customers experienced
difficulties withdrawing their security deposits through online banking and have concerns regarding their deposited funds. The Company
has taken remedial measures to assist its customers in withdrawing security deposits, such as through manual and in person application
with the bank to transfer funds, so that they will have confidence in the Company and continue to list and trade art and collectible
products on the online platforms of the Company. However, there can be no assurance that these measures will restore customer confidence
in using