Company: DDC
Filing Date: 2025-08-05
Form Type: F-3/A
Source: 0001213900-25-072059
Chunk: 23

Company: DDC Enterprise Ltd
Filing Date: 2025-08-05
Form: F-3/A
Chunk 23
---
 private keys used to access bitcoin balances are not widely distributed and are susceptible to phishing and other attacks
designed to obtain sensitive information or gain access to password-protected systems. Loss of such private keys can result in an inability
to access, and effective loss of, the corresponding bitcoin. Consequently, bitcoin holdings are susceptible to certain risks inherent
in holding any electronic data, such as data corruption, security breach, communication failure and user error, among others. These risks,
in turn, make bitcoin substantially more susceptible to theft, destruction, or loss of value from hackers, corruption, viruses and other
technology-specific factors as compared to conventional fiat currency or other conventional financial assets. See “Item 1A. Risk
Factors—Risks Related to Our Bitcoin Strategy and Holdings—If we or our third-party service providers experience a security
breach or cyberattack and unauthorized parties obtain access to our bitcoin, or if our private keys are lost or destroyed, or other similar
circumstances or events occur, we may lose some or all of our bitcoin and our financial condition and results of operations could be materially
adversely affected.”

In addition, the Bitcoin network relies on open-source
developers to maintain and improve the Bitcoin protocol. Accordingly, bitcoin may be subject to protocol design changes, governance disputes
such as “forked” protocols, competing protocols, and other open source-specific risks that do not affect conventional proprietary
software.

<div align='center'>8</div>

The laws and regulations applicable to bitcoin
and digital assets are evolving and subject to interpretation and change.

Governments around the world have reacted differently
to digital assets; certain governments have deemed them illegal, and others have allowed their use and trade without restriction, while
in some jurisdictions, such as the U.S., digital assets are subject to overlapping, uncertain and evolving regulatory requirements.

As digital assets have grown in both popularity
and market size, the U.S. Executive Branch, Congress and a number of U.S. federal and state agencies, including the Financial Crimes Enforcement
Network, the Commodity Futures Trading Commission (“CFTC”), the SEC, the Financial Industry Regulatory Authority, the Consumer
Financial Protection Bureau, the Department of Justice, the Department of Homeland Security, the Federal Bureau of Investigation, the
IRS and state financial regulators, have been examining the operations of digital asset networks, digital asset users and digital asset
exchanges, with particular focus on the extent to which digital assets can be used to violate state or federal laws, including to facilitate