Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 26

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 26
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 including disputes with our suppliers, customers,
business partners, competitors or employees.

We have been and may continue
to be, from time to time, involved in disputes with various parties arising out of our operations, including our suppliers, customers,
business partners, competitors or employees. These disputes may lead to protests or legal or other proceedings and may result in damage
to our reputation, substantial costs and diversion of resources and management’s attention from our core business activities.

Ethereal Singapore is named
as a defendant in a lawsuit filed on November 6, 2023, in the United States Bankruptcy Court for the District of Delaware, the venue
of which has been transferred to the U. S. District Court for the Southern District of New York. The lawsuit relates to an alleged agreement
to sell at a discount of Ethereal Singapore’s creditor claim against FTX’s bankruptcy estate. The plaintiff seeks specific
performance by Ethereal Singapore to complete the transfer of the subject claim to the plaintiff or, alternatively, damages in an amount
equal to the difference between the alleged purchase prices of the subject claim and the ultimate amounts distributed by the FTX bankruptcy
estate on the account of that claim. As discussed elsewhere in this Report, as a result of the FTX bankruptcy proceeding, we recorded
100% impairment loss for the claim of US$9.8 million in 2022 (remeasured using the carrying value of Bitcoin as of December 31,
2022) on assets, including the underlying assets of this lawsuit’s subject claim, held at FTX. As of December 31, 2024, the lawsuit
has been discontinued and the matter has been fully settled.

On September 11, 2024, a holder
of certain Warrants, or the Warrant Holder, commenced a litigation against the Company in the United States District Court for Southern
District of New York, alleging that the Company breached the warrant agreement between Arisz and Continental Stock Transfer& Trust
Company by failing to honor the Warrant Holder’s attempts on March 4, 2024 to exercise a portion of the Warrants it holds. We
dispute the allegations and filed a motion to dismiss on December 18, 2024. That motion is fully briefed and awaiting a decision
from the court. We intend to defend the lawsuit vigorously but we cannot predict the outcome at this time due to its early stage.

In addition, we may encounter
compliance issues with regulatory bodies in the ordinary course of our business operations, and therefore