Company: ABTC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076632
Chunk: 70

Company: American Bitcoin Corp.
Filing Date: 2025-08-14
Form: 10-Q
Item: Item 8
Chunk 70
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In January 2024, the Company
received a civil investigative demand from the DOJ seeking information and documents about the PPP Loan. The Company is cooperating with
the inquiry. At this time, there has been no formal demand for return of the PPP Loan proceeds, and no formal claim or lawsuit has been
initiated against the Company.

Former CEO Litigation

As previously disclosed, on
September 17, 2024, Robby Chang was terminated as Chief Executive Officer and President of Gryphon for cause, with immediate effect, by
the Gryphon Board. Mr. Chang remains a member of the Gryphon Board.

On October 21, 2024, the Company
received notice that both it and Ivy Crypto, Inc., a wholly owned direct subsidiary of the Company, have been named as defendants in a
complaint filed by Mr. Chang in the Ontario Superior Court of Justice in Canada, alleging wrongful termination. The Company intends to
defend this matter vigorously.

On October 22, 2024, the Gryphon
Board created a special committee to oversee the Company’s handling of the claim made by Mr. Chang, which is currently comprised
of Steve Gutterman, Jimmy Vaiopoulos and Jessica Billingsley. The Company and Ivy Crypto, Inc. have served their Statement of Defense,
and the parties agreed to proceed with a mediation of the dispute that was held on May 5, 2025. The mediation was unsuccessful, and the
litigation remains unresolved. The potential outcome cannot be determined at this time.

Item 1A. Risk Factors.

Except for the additional
risk factors set forth below, there have been no material changes to our Risk Factors as disclosed in our Annual Report on Form 10-K for
the year ended December 31, 2024, as filed with the SEC on March 31, 2025, as amended.

Neither Gryphon nor ABTC can be sure if
or when the Mergers will be completed.

The consummation of the
Mergers is subject to the satisfaction or waiver of various conditions. Neither Gryphon nor ABTC can guarantee that the closing
conditions set forth in the ABTC Merger Agreement will be satisfied. If Gryphon is unable to satisfy the closing conditions in
ABTC’s favor or if other mutual closing conditions are not satisfied, ABTC will not be obligated to complete the Mergers.
Under certain circumstances, Gryphon would be required to pay ABTC a termination fee of $5,