Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 281

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 281
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 operational changes, or prevent us from providing our products or solutions in any given market.

46

We are also subject to rules governing electronic
funds transfers and payment card association rules. We may also be directly or indirectly liable to the payment networks for rule violations.
Payment networks set and interpret their network operating rules and may allege that our business model violates these operating rules.
If such allegations are not resolved favorably, they may result in significant fines and penalties or require changes in our business
practices that may be costly and adversely affect our business. The payment networks could adopt new operating rules or interpret or reinterpret
existing rules, including as a result of a change in our designation by major payment card providers or by a payment network, that we
or our processors might find difficult or even impossible to follow, or costly to implement. As a result, we could lose our ability to
give customers the option of using cards to fund their accounts or purchases or the choice of currency in which they would like their
card to be charged or we may be required to change our business operations. If we are unable to accept cards or are limited in our ability
to do so, our business would be adversely affected. In addition, any increase to fees charged or interchange assessed under, or increased
costs associated with compliance with, payment network rules or payment card provider rules could lead to increased fees and costs for
us or our customers, which may negatively impact payments on our services and usage of our services. Payment networks have imposed, and
may impose in the future, special fees on the purchase of crypto assets, including on our platform, which could negatively impact us and
significantly increase our costs. We could attempt to pass these increases along to our customers, but this could negatively impact our
business or result in the loss of customers, thereby reducing our revenue and earnings. If competitive practices prevent us from passing
along the higher fees to our customers in the future, we may have to absorb all or a portion of such increases, thereby increasing our
operating costs and reducing our earnings.

Due to the risk of our platform being used for illegal
or illicit activity, any perceived or actual breach of compliance by us with respect to anti-money laundering (“AML”) laws,
rules and regulations, including the Bank Secrecy Act, USA Patriot Act and Title 18 U.S.C. Sections 1956-57 and 1960, could
have a significant impact on our reputation and could cause us to lose customers, prevent us from