Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 63

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 63
---
 these forks were contentious and as a result,
participants in certain communities may harbor ill will towards other communities. As a result, certain community members may take actions
that adversely impact the use, adoption, and price of Bitcoin.

Future forks may occur at any time. A fork can lead
to a disruption of networks and our information technology systems, cybersecurity attacks, replay attacks, or security weaknesses, any
of which can further lead to temporary or even permanent loss of our and our customers’ assets. In addition, our Bitcoin Service
Providers have the right to temporarily suspend their services in the event of a fork, and to determine not to support any particular
fork in the future. If a fork of the bitcoin blockchain occurs and our Bitcoin Service Providers provide access to a forked asset, we
intend to retain the forked assets that are created as a result of our proprietary bitcoin. Any forked assets corresponding to our customers’
bitcoin holdings would be managed by our Bitcoin Service Providers in accordance with their policies. We will cooperate with our Bitcoin
Service Providers in connection with their distribution of any forked assets corresponding to our customers’ bitcoin, solely to
the extent our involvement is requested by a Bitcoin Service Provider. Prior to undertaking any such involvement in the distribution or
other action by a Bitcoin Service Provider in respect of any forked assets, we would take steps to seek to ensure that any actions we
may take would be in compliance with applicable law, including federal securities laws, which steps may include, among others, (i) communicating
regularly with the Bitcoin Service Providers regarding their legal analysis pertaining to forked assets and any distribution thereof,
(ii) staying abreast of developments regarding treatment of cryptocurrencies, including forked assets, under applicable securities laws,
(iii) consulting with legal counsel regarding the specific facts and circumstances pertaining to the legal status of any forked asset
and (iv) seeking guidance and clarification from applicable government regulators, including the SEC, with respect to the legal status
of any forked asset. If a fork occurs and one of our Bitcoin Service Providers determines not to support one of the assets created as
a result of the fork, this could cause us or our customers to miss an opportunity regarding a new digital asset. In addition, any suspension
of services ahead of a fork could cause customer complaints and cause us to be exposed to liability, even in circumstances where we do
not have the ability to alter a Bitcoin Service Provider’s policy regarding a fork. To the extent a forked asset is determined