Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 80

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 80
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We are subject to risks
related to the banking and financial services ecosystem, and to our banking and crypto service providers specifically.

Volatility in the banking and
financial services sectors and regulatory enforcements by the FDIC or other regulators may impact our bank partnerships and could negatively
impact our business. For example, we offer certain FDIC-insured products through our partnership with Bank, a member of the FDIC, and
if the FDIC were to seek to enter into an enforcement action against Sutton Bank, it may adversely impact our business or relationship
with Sutton Bank. For example, in February 2024, Sutton Bank became subject to an FDIC enforcement order that, among other things, required
Sutton Bank to correct certain banking practices and within 60 days devise a plan to review all prepaid card customers since July 1, 2020
for compliance with anti-money laundering requirements. Similarly, for certain Bitcoin related services, we partner with the Bitcoin Service
Providers, which are regulated by various federal and state regulators, and if such regulators were to enter into an enforcement action
against either of the Bitcoin Service Providers, it may adversely impact our business or relationship with them. In addition, although
we believe our banking and financial services programs comply with all applicable law, if Sutton Bank or Bitcoin Service Providers fail
to comply with applicable law, it may adversely impact our business and reputation.

Although we believe our banking
partner maintains proper records and satisfies requirements for each eligible participant’s deposits to be covered by FDIC insurance,
up to the applicable maximum deposit insurance amount, the FDIC may disagree. In such an event, the FDIC may not recognize the participants’
claims as covered by deposit insurance in the event Sutton Bank fails and enters receivership proceedings under the Federal Deposit Insurance
Act (“FDIA”). If the FDIC were to determine that funds held at Sutton Bank are not covered by deposit insurance, or if Sutton
Bank were to fail and enter receivership proceedings under the FDIA, our customers may seek to withdraw their funds, or may not be able
to withdraw all their funds in a timely manner, which could adversely affect our brand, business and results of operations, and may lead
to claims or litigation, which may be costly to address. Additionally, in instances where we are a service-provider to or are otherwise
in a third-party relationship with Sutton Bank in connection with these programs, we are subject to certain risk-management standards
for third-party relationships in accordance with