Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 86

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 86
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 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.

49

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 federal bank regulatory guidance and examinations by the federal banking regulators.

We intend to continue to explore other products,
models, and structures for our product offerings, including with existing and new bank and cryptocurrency partners. Certain of our current
product offerings may subject us to reporting requirements, bonding requirements, and inspection by applicable federal or state regulatory
agencies, and our future product offerings may potentially require, or be deemed to require, additional data, procedures, partnerships,
licenses, regulatory approvals, or capabilities that we have not yet obtained or developed. Should we fail to successfully expand and
evolve our product offerings, or should our new products, models or structures, or new laws or regulations or interpretations of existing
laws or regulations