Company: IPST
Filing Date: 2025-08-15
Form Type: 424B3
Source: 0001641172-25-024420
Chunk: 144

Company: Heritage Distilling Holding Company, Inc.
Filing Date: 2025-08-15
Form: 424B3
Chunk 144
---
30. | Marketing,                                                                                                                              
 promotional, and selective disclosure risk. Given heightened regulatory scrutiny, any public statements about tokenomics, price         
 expectations, or protocol development could be alleged to be misleading “investment” solicitations.                                     |

Banking, Payments, and Sanctions/AML Risks

| 31. | OFAC                                                                                                                                  
 and sanctions exposure. We are subject to the rules enforced by the Office of Foreign Assets Control of the U.S. Department of        
 the Treasury (“OFAC”), including prohibitions on conducting business with persons named on, or owned by persons named                 
 on, OFAC’s various sanctions lists. U.S. sanctions compliance obligations apply to transactions in digital assets and U.S.            
 sanctions authorities have in recent years directed significant attention to sanctions compliance among the digital asset industry.   
 Because of the pseudonymous nature of blockchain transactions, we may inadvertently and without knowledge, directly or indirectly     
 engage in transactions with or for the benefit of prohibited persons. Civil liability for OFAC sanctions violations are typically     
 regarded as “strict liability” violations, meaning we may be held responsible for transacting with prohibited parties                 
 even if we have no knowledge that a particular counterparty is a prohibited person under the OFAC sanctions regulations. In addition, 
 we may be subject to non-U.S. economic sanctions laws and regulations to the extent we conduct activity within the jurisdiction of    
 other sanctions regimes, including those of the European Union and United Kingdom.                                                    |

| 32. | AML/KYC                                                                                                                                     
 frictions. The Financial Crimes Enforcement Network, a division of the U.S. Treasury Department (“FinCEN”) regulates                        
 providers of certain services with respect to “convertible virtual currency,” including $IP. Businesses engaged in the                      
 transfer of convertible virtual currencies are subject to registration and licensure requirements at the U.S. federal level and             
 also under U.S. state laws. There is a risk that if we determine to provide staking services to third parties, FinCEN or other regulators   
 could view such services as the provision of money transmission activities subject to regulations. If regulatory changes or interpretations 
 require us to register as a money services business with FinCEN under the U.S. Bank Secrecy Act, or as a money transmitter under            
 state laws, we may be subject to extensive regulatory requirements, resulting in significant compliance costs and operational burdens.      
 In such a case, we may incur extraordinary expenses to meet these requirements or, alternatively, may determine that continued operations   
 are not viable.                                                                                                                             |