Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 23

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 23
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 systems or documents, or the systems or documents
of our service providers, and improperly access, obtain, or misuse the digital assets that we hold for our customers’ account. The
methods used to obtain unauthorized access, disable, or degrade service or sabotage systems are also constantly changing and evolving,
and may be difficult to anticipate or detect for long periods of time. We also face risks of destruction or loss associated with using
offline cold wallet, and may experience difficulties in recovering our digital assets when the associated private keys are lost or leaked.
Any security incident resulting in a compromise of our or our customers’ digital assets could result in substantial costs to us
and require us to notify, and potentially compensate impacted customers. Such incidents could also subject us to litigation, significant
financial losses, damage our reputation, and adversely affect our business, financial condition and results of operations.

In addition, we or our customers
may temporarily lose access to digital assets as a result of software or systems upgrades or maintenance. In this case, we or our customers
would likely rely on third parties to assist in restoring such access, and we cannot provide any assurance that such third parties will
be able to restore access on a timely basis, or at all. Any temporary loss for us or our customers could have a material adverse effect
on our business, financial condition and results of operations.

Digital asset transactions are irrevocable
and, if stolen or incorrectly transferred, digital assets may be irretrievable. Any loss or destruction of a private key required to access
a digital asset is also irreversible.

Typically, digital asset transactions
are not, from an administrative perspective, reversible without the consent and active participation of the recipient of the transaction
or, in theory, control or consent of a majority of the processing power on the applicable network. Once a transaction has been confirmed
and verified in a block that is added to the network blockchain, an incorrect transfer of a digital asset or a theft of a digital asset
generally will not be reversible and we and our customers may not be capable of seeking compensation for any such transfer or theft. Although
transfers of any digital assets we or our customers hold will regularly be made to or from vendors, consultants, services providers, etc.,
it is possible that, through computer or human error, or through theft or criminal action, such digital assets could be transferred from
them in incorrect amounts or to unauthorized third parties. To the extent that we or our customers are unable to seek a corrective transaction
with such third party