Company: BTBT
Filing Date: 2025-03-14
Form Type: 10-K
Source: 0001013762-25-000307
Chunk: 1974

Company: Bit Digital, Inc
Filing Date: 2025-03-14
Form: 10-K
Item: Item 6
Chunk 1974
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 of loss associated with any individual legal proceeding cannot be
estimated.

Bit Digital USA, Inc. v. Blockfusion USA, Inc.,
C.A. No. N24C-05-306 PRW (CCLD)

On June 3, 2024, the Company filed suit in Delaware
Superior Court against Blockfusion, Inc. (“Blockfusion”) alleging claims for breach of contract, conversion, and related claims
in connection with, among other things, certain deposits and advances paid to Blockfusion, the return of which is owed to Bit Digital.
Bit Digital is seeking in excess of $4.3 million. On October 22, 2024, Blockfusion denied the Company’s claims and brought reciprocal
breach of contract and related counterclaims. Blockfusion is seeking at least $158,000 in damages. A bench trial has been scheduled for
June 29, 2026. The litigation is at an early stage and a reasonably possible range of loss or recovery cannot be estimated.

20. SETTLEMENT OF CLASS ACTION LAWSUIT

On January 20, 2021, a securities class action
lawsuit was filed against the Company and its former Chief Executive Officer and current Chief Financial Officer titled Anthony Pauwels
v. Bit Digital, Inc., Min Hu and Erke Huang (Case No. 1:21-cv-00515) (U.S.D.C. S.D.N.Y.). The class action was on behalf of persons that
purchased or acquired our ordinary shares between December 21, 2020 and January 11, 2021, a period of volatility in our Ordinary Shares,
as well as volatility in the price of bitcoin. We believe the complaints are based solely upon a research article issued on January 11,
2021, which included false claims and to which the Company responded in a press release filed on Form 6-K on January 19, 2021. On April
21, 2021, the Court consolidated several related cases under the caption In re Bit Digital Securities Litigation. Joseph Franklin Monkam
Nitcheu was appointed as lead plaintiff. We filed a motion to dismiss the lawsuits and vigorously defended the action. While that motion
was pending, the Company agreed with the lead plaintiff selected in the case to settle the class action by paying $2,100,000. The Company
recorded the liabilities of $2,100,000 in the account of “accrued litigation settlement costs”. The Company chose