Company: ORBS
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023549
Chunk: 155

Company: Eightco Holdings Inc.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 3
Chunk 155
---
 ecosystems have been, and may in the future
be, subject to security breaches, cyberattacks, or other malicious activities. For example, in October 2021 it was reported that hackers
exploited a flaw in the account recovery process and stole from the accounts of at least 6,000 customers of the Coinbase exchange, although
the flaw was subsequently fixed and Coinbase reimbursed affected customers. Similarly, in November 2022, hackers exploited weaknesses
in the security architecture of the FTX Trading digital asset exchange and reportedly stole over $400 million in digital assets from
customers.

Worldcoin’s
operations specifically involve the collection and storage of sensitive biometric information, which makes it an attractive target for
sophisticated cyber-criminals and other bad actors. Unlike passwords or credit card numbers, biometric traits are permanent and cannot
be re-issued, so any compromise could cause irreversible harm to affected individuals and expose Worldcoin to legal and reputational
consequences. The market value of biometric data is significant; stolen iris templates can be used to create deepfakes, spoof identity
systems, and facilitate account takeovers in financial, governmental, and healthcare contexts. Attackers may attempt to circumvent Worldcoin’s
safeguards through creative and unconventional methods.

A
successful security breach or cyberattack could result in:

    ●
    a
    partial or total loss of our digital assets in a manner that may not be covered by insurance or the liability provisions of the custody
    agreements with the custodians who hold our digital assets;
  
    ●
    harm
    to our reputation and brand;
  
    ●
    improper
    disclosure of data and violations of applicable data privacy and other laws; or
  
    ●
    significant
    regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, contractual and financial exposure.

Further,
any actual or perceived data security breach or cybersecurity attack directed at other companies with digital assets or companies that
operate digital asset networks, regardless of whether we are directly impacted, could lead to a general loss of confidence in the broader
Worldcoin ecosystem or in the use of the Worldcoin network to conduct financial transactions, which could negatively impact us.

Attacks
upon systems across a variety of industries, including industries related to Worldcoin, are increasing in frequency, persistence, and
sophistication, and, in many cases, are being conducted by sophisticated, well organized groups and individuals, including state actors.
The techniques used to