Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 81

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 81
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 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 obtaining new customers, require us
to expend significant funds to remedy civil and criminal problems caused by violations and to avert further violations and expose us to
legal risk and potential liability that could have a material effect on our business. Several of these laws require certain companies
to adopt an AML compliance program, including those companies that are characterized as a federal money services business or state money
transmitter. Moreover, many states have their own AML and money transmitter and virtual currency regulatory regimes and interpretations
and applications of those legal principles are complex and varied. If the federal government or any state government took the position
that we were a money services business, money transmitter or virtual currency business, they could require us to register as such and
obtain money transmitter or virtual currency licenses. Furthermore, should a federal or state regulator make a determination that we have
operated as an unlicensed money services business, money transmitter, or virtual currency business, we could be subject to civil and criminal
fines, penalties, costs, legal fees, reputational damage or other negative consequences, all of which may have an adverse effect on our
business, financial condition and results of operations.

Risks Related to Third Parties

We rely on our program agreement with Sutton Bank to offer our
Fold prepaid card product. If our relationship with Sutton Bank were to end, the ability to continue to offer our card product would be
affected, which could affect our financial and business results.

We market Fold prepaid cards issued by Sutton Bank
to consumers through a program agreement with Bank, our bank partner for the card. If our relationship with Sutton Bank were to end or
if Sutton Bank were to cease or restrict operations, our ability to continue to offer our card product would be affected, which could
adversely affect our financial and business results. In such an event, we would need to partner with