Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 51

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 51
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 transaction volume, or increased costs could harm our business.

Moreover, while fiat currencies
can be used to facilitate illegal activities, Bitcoin is relatively new and, in many jurisdictions, may be lightly regulated or largely
unregulated. Bitcoin has characteristics, such as the speed with which digital currency transactions can be conducted, the ability to
conduct transactions without the involvement of regulated intermediaries, the ability to engage in transactions across multiple jurisdictions,
the irreversible nature of certain crypto asset transactions, and encryption technology that anonymizes these transactions, that make
it susceptible to use in illegal activity. U.S. federal and state and foreign regulatory authorities and law enforcement agencies, such
as the Department of Justice (“DOJ”), SEC, CFTC, FTC, or the Internal Revenue Service (“IRS”), and various state
securities and financial regulators have taken and continue to take legal action against persons and entities alleged to be engaged in
fraudulent schemes or other illicit activity involving Bitcoin.

While we believe that our risk
management and compliance framework is designed to detect significant illicit activities conducted by our potential or existing customers,
we cannot ensure that we will be able to detect all illegal activity on our platform. If any of our customers use our platform for such
illegal activities or we are found responsible for failure to prevent the use of our products or services for illegal activities, our
business could be adversely affected.

Our compliance and
risk management methods might not be effective and may result in outcomes that could adversely affect our reputation, operating results,
and financial condition.

Our ability to comply with applicable
complex and evolving laws, regulations, and rules is largely dependent on the establishment, maintenance, and scaling of our compliance,
internal audit, and reporting systems to continuously keep pace with our customer activity and transaction volume, as well as our ability
to attract and retain qualified compliance and other risk management personnel. While we have devoted significant resources to develop
policies and procedures to identify, monitor, and manage our risks, and expect to continue to do so in the future, we cannot assure you
that our policies and procedures are and will always be effective or that we have been and will always be successful in monitoring or
evaluating the risks to which we are or may be exposed in all market environments or against all types of risks, including unidentified
or unanticipated risks. Our risk management policies and procedures rely on a combination of technical and human controls and supervision
that are subject to error and failure. Some of our methods for managing risk are discretionary by nature and are based on