Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072148
Chunk: 96

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 96
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 to launder money or persons subject to sanctions, we may be subject to regulatory proceedings and any further transactions or
dealings in bitcoin by us may be restricted or prohibited.

We may incur indebtedness or enter into other financial
instruments in the future that may be collateralized by our bitcoin holdings. We may also consider pursuing strategies to create income
streams or otherwise generate funds using our bitcoin holdings. These types of bitcoin-related transactions are the subject of enhanced
regulatory oversight. These and any other bitcoin-related transactions we may enter into, beyond simply acquiring and holding bitcoin,
may subject us to additional regulatory compliance requirements and scrutiny, including under federal and state money services regulations,
money transmitter licensing requirements and various commodity and securities laws and regulations.

Additional laws, guidance and policies may be issued
by domestic and foreign regulators following the filing for Chapter 11 bankruptcy protection by FTX, one of the world’s largest
cryptocurrency exchanges, in November 2022. While the financial and regulatory fallout from FTX’s collapse did not directly impact
our business, financial condition or corporate assets, the FTX collapse may have increased regulatory focus on the digital assets industry.
Increased enforcement activity and changes in the regulatory environment, including changing interpretations and the implementation of
new or varying regulatory requirements by the government or any new legislation affecting bitcoin, as well as enforcement actions involving
or impacting our trading venues, counterparties and custodians, may impose significant costs or significantly limit our ability to hold
and transact in bitcoin.

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In addition, private actors
that are wary of bitcoin or the regulatory concerns associated with bitcoin have in the past taken and may in the future take further
actions that may have an adverse effect on our business or the market price of our listed securities. For example, an affiliate of HSBC
Holdings has prohibited customers of its HSBC InvestDirect retail investment platform from buying shares of our Class A ordinary shares
after determining that the value of our stock is related to the performance of bitcoin, indicating that it did not want to facilitate
exposure to virtual currencies.

Due to the unregulated nature and lack of transparency surrounding the operations of many bitcoin trading venues, bitcoin trading venues may experience greater fraud, security failures or regulatory or operational problems than trading venues for more established asset classes, which may result in a loss of confidence in bitcoin trading venues and adversely affect the value of our bitcoin.

Bitcoin trading venues are relatively new and,
in many cases, unregulated. Furthermore, there are many bitcoin