Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 60

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 60
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 in the future experience, difficulties
in establishing relationships with banks, leasing companies, insurance companies and other financial institutions that are willing to
provide us with customary leasing and financial services and products, such as bank accounts, lines of credit, insurance and other related
services, which are necessary for our operations. To the extent a significant portion of our business depends on digital assets and the
related mining, processing, hosting or other business activities, we may in the future continue to experience difficulty obtaining additional
financial services and products on customary terms, which could have a material adverse effect on our business, financial condition and
results of operations.

Our interactions with a blockchain may expose
us to SDN or blocked persons or cause us to violate provisions of law that did not contemplate distribute ledger technology.

The Office of Financial Assets
Control of the U. S. Department of Treasury (“ OFAC”) requires us to comply with its sanction program and not conduct business
with persons named on its specially designated nationals (“ SDN”) list. However, because of the pseudonymous nature of blockchain
transactions, we may inadvertently and without our knowledge engage in transactions with persons named on OFAC’s SDN list. Our internal
policies prohibit any transactions with such SDN individuals, but we may not be adequately capable of determining the ultimate identity
of the individual with whom we transact or our end customers. In addition, in the future, OFAC or another regulator, may require us to
screen transactions for OFAC addresses or other bad actors before including such transactions in a block, which may increase our compliance
costs, decrease our anticipated transaction fees and lead to decreased traffic on our network. Any of these factors, consequently, could
have a material adverse effect on our business, prospects, financial condition and results of operations.

Moreover, federal law prohibits
any U. S. person from knowingly or unknowingly possessing any visual depiction commonly known as child pornography. Recent media reports
have suggested that persons have imbedded such depictions on one or more blockchains. To the extent government enforcement authorities
literally enforce these and other laws and regulations that are impacted by decentralized distributed ledger technology, we may be subject
to investigation, administrative or court proceedings, and civil or criminal monetary fines and penalties, all of which could harm our
reputation and could have a material adverse effect on our business, prospects, financial condition and results of operations.

Because there is limited guidance for tax
reporting and accounting of Bitcoin and other digital asset transactions, the determin