Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 287

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 287
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, it may adversely impact our business and reputation.

49

Although we believe our banking partner maintains
proper records and satisfies requirements for each eligible participant’s deposits to be covered by FDIC insurance, up to the applicable
maximum deposit insurance amount, the FDIC may disagree. In such an event, the FDIC may not recognize the participants’ claims as
covered by deposit insurance in the event Sutton Bank fails and enters receivership proceedings under the Federal Deposit Insurance Act
(“FDIA”). If the FDIC were to determine that funds held at Sutton Bank are not covered by deposit insurance, or if Sutton
Bank were to fail and enter receivership proceedings under the FDIA, our customers may seek to withdraw their funds, or may not be able
to withdraw all their funds in a timely manner, which could adversely affect our brand, business and results of operations, and may lead
to claims or litigation, which may be costly to address. Additionally, in instances where we are a service-provider to or are otherwise
in a third-party relationship with Sutton Bank in connection with these programs, we are subject to certain risk-management standards
for third-party relationships in accordance with federal bank regulatory guidance and examinations by the federal banking regulators.

We intend to continue to explore other products,
models, and structures for our product offerings, including with existing and new bank and cryptocurrency partners. Certain of our current
product offerings may subject us to reporting requirements, bonding requirements, and inspection by applicable federal or state regulatory
agencies, and our future product offerings may potentially require, or be deemed to require, additional data, procedures, partnerships,
licenses, regulatory approvals, or capabilities that we have not yet obtained or developed. Should we fail to successfully expand and
evolve our product offerings, or should our new products, models or structures, or new laws or regulations or interpretations of existing
laws or regulations, impose requirements on us that are cumbersome or that we cannot satisfy, our business may be materially and adversely
affected.

Any change to the Bitcoin Service Providers’ fee schedules
could adversely impact our business.

We rely on our cryptocurrency custody providers
to process customers’ Bitcoin transactions and we pay these providers fees for their services. From time to time, our crypto custody
providers have increased, and may increase in the future, the fees they charge for the provision of custody services and for transactions
that use their networks. While these fees are payable directly by our customers, any increases in such fees might result in the loss of
customers to other custodians