Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 19

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 19
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 measures protecting the facilities supporting our operations could cause interruptions or malfunctions in our operations
and misappropriate our property or the property of our customers. We may be required to expend significant capital and resources or replace
existing hosting facility suppliers to protect against such threats or to alleviate problems caused by breaches in security. As techniques
used to breach security change frequently and are often not recognized until launched against a target, we cannot assure you that we or
our hosting facility suppliers will be able to implement new security measures in a timely manner or, if and when implemented, these measures
would not be circumvented. Any breaches that may occur could expose us to increased risk of lawsuits, regulatory penalties, loss of existing
or potential customers, harm to our reputation and increases in security costs, which could have a material adverse effect on our business,
financial condition and results of operations.

In addition, any assertions
of alleged security breaches or system failures made against us or our hosting facility suppliers, whether true or not, could harm our
reputation, cause us to incur substantial legal fees to defend against such claims, or otherwise have a material adverse effect on our
business, financial condition and results of operations. Such claims, irrespective of the outcomes or the merits, would likely be time-consuming and
costly to defend and could divert significant resources and management attention. We could also incur significant payment of damages or
expenses, or otherwise be restricted from operating our business. Any such claim or potential litigation, including the resources incurred
in connection therewith, could have a material adverse effect on our business, financial condition and results of operations.

Furthermore, security breaches,
computer malware and computer hacking attacks have been a prevalent concern in the digital asset exchange market. Any security breach
caused by hacking, which involves efforts to gain unauthorized access to information or systems, or to cause intentional malfunctions
or loss or corruption of data, software, hardware or other computer equipment, and the inadvertent transmission of computer viruses, could
harm our business operations or result in loss of our assets.

Moreover, the threats to network
and data security are increasingly diverse and sophisticated. Despite our efforts and processes to prevent breaches, our computer servers
and computer systems may be vulnerable to cybersecurity risks, including denial-of-service attacks, physical or electronic break-ins,
employee theft or misuse and similar disruptions from unauthorized tampering with our computer servers and computer systems. The preventive
actions we take to reduce the risk of cyber incidents and protect our information technology and networks may be insufficient to repel