Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 43

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 43
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 users’
susceptibility to fraud, may cause our customers to be subject to ongoing account takeovers and identity fraud issues. While we have taken
measures to detect and reduce the risk of fraud, there is no guarantee that they will be successful and, in any case, require continuous
improvement and optimization for continually evolving forms of fraud to be effective. There can be no guarantee that we will be successful
in detecting and resolving these disputes or defending ourselves in any of these matters, and any failure may result in impaired relationships
with our customers, damage to our brand and reputation, and substantial fines and damages. In some cases, the measures we have implemented
to detect and deter fraud have led to poor customer experiences, including indefinite account inaccessibility for some of our customers,
which increases our customer support costs and can compound damages. We could incur significant costs in compensating our customers, such
as if a transaction was unauthorized, erroneous, or fraudulent. We could also incur significant legal expenses resolving and defending
claims, even those without merit. To the extent we are found to have failed to fulfill our regulatory obligations, we could become subject
to conditions that could make operations more costly, impair our ability to grow, and adversely impact our operating results. We may in
the future become subject to investigation and enforcement action by state, federal, and international consumer protection agencies, including
the Consumer Financial Protection Bureau (the “CFPB”), the Federal Trade Commission (the “FTC”), the Federal Insurance
Corporation (the “FDIC”) and state attorneys general in the United States, each of which monitors customer complaints against
us and, from time to time, escalates matters for investigation and potential enforcement against us.

While certain of our customer
agreements contain arbitration provisions with class action waiver provisions that may limit our exposure to consumer class action litigation,
some federal, state, and foreign courts have refused or may refuse to enforce one or more of these provisions, and there can be no assurance
that we will be successful in enforcing these arbitration provisions, including the class action waiver provisions, in the future or in
any given case. Legislative, administrative, or regulatory developments may directly or indirectly prohibit or limit the use of pre-dispute
arbitration clauses and class action waiver provisions. Any such prohibitions or limitations on or discontinuation of the use of such
arbitration or class action waiver provisions could subject us to additional lawsuits, including additional consumer class action litigation,
and significantly limit our ability to