Company: OCG
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-043484
Chunk: 58

Company: Oriental Culture Holding LTD
Filing Date: 2025-05-15
Form: 20-F
Item: Item 5
Chunk 58
---
 the judgement of the Court since February 2024. On May
5, 2025, NCPP filed to the Court to withdraw the charges against Nanjing Jinwang, Mr. Aimin Kong and Mr. Huajun Gao due to lack of evidence
to press the charges. On May 8, 2025, the Court ordered to grant the withdrawal of charges against Nanjing Jinwang, Mr. Kong and Mr. Gao
by NCCP.

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
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 $14.7 million relating to the Nanjing Jinwang investigation
as described above as of December 31, 2024. Currently the customers can freely transfer their deposits 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
until January 23, 2025 when Mr. Aimin Kong was appointed as Chief Operating Officer of the Company.

Due to the Nanjing Jinwang case 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