Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 183

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 15
Chunk 183
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 to the risks that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.

As required by Section 404
of the Sarbanes-Oxley Act of 2002 and related rules as promulgated by the SEC, our management, including our chief executive officer and
chief financial officer, assessed the effectiveness of internal control over financial reporting as of December 31, 2024 using the criteria
set forth in the report “ Internal Control - Integrated Framework (2013)” published by the Committee of Sponsoring Organizations
of the Treadway Commission. Based on this evaluation, the management concluded that our internal control over financial reporting was
not effective as of December 31, 2024, because of the material weakness described below.

As defined in the standards
established by the PCAOB, a “material weakness” is a deficiency, or a combination of deficiencies, in internal control over
financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim consolidated financial
statements will not be prevented or detected on a timely basis.

The material weakness that
we have identified in our internal control relates to insufficient accounting personnel with appropriate experience and knowledge to address
complex accounting matters in accordance with U. S. GAAP. The material weakness, if not remediated timely, may lead to material misstatements
in our consolidated financial statements in the future.

To remedy the identified material
weakness, we took several measures to improve our internal control over financial reporting, including, among others: (i) recruiting more
qualified personnel equipped with relevant U. S. GAAP and SEC reporting experience and qualifications to strengthen the financial reporting
function and to set up a financial and system control framework, (ii) implementing regular and continuous U. S. GAAP accounting and financial
reporting training programs for our accounting and financial reporting personnel, (iii) enhancing oversight over and clarifying reporting
requirements for, non-recurring and complex transactions to ensure consolidated financial statements and related disclosures are accurate,
complete and in compliance with U. S. GAAP and SEC reporting requirements, (iv) engaging a U. S. consulting firm as our advisor who has
rich knowledge and experience in U. S. GAAP and SEC reporting, as well as accounting treatment and disclosures for the crypto industry,
and (v) preparing more detailed guidance and manuals on financial closing policies and procedures to improve the quality and accuracy
of period-end