Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 68

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 68
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, cause us to incur remediation costs, or cause
us to lose existing customers.

Further, the cryptocurrency industry
is a frequent target for cyberattacks, including hacks of exchanges and wallets. The underlying technology of cryptocurrencies, including
blockchain, is complex and still developing, which means technical issues, bugs, or vulnerabilities could impact our operations and the
security of user funds. Additionally, any actual or perceived breach or cybersecurity attack directed at other financial institutions
or crypto companies, whether or not we are directly impacted, could lead to a general loss of customer confidence in the cryptoeconomy
or in the use of technology to conduct financial transactions, which could negatively impact us, including the market perception of the
effectiveness of our security measures and technology infrastructure.

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Cyberattacks are expected to
accelerate on a global basis in frequency and magnitude as threat actors are becoming increasingly sophisticated in using techniques and
tools - including artificial intelligence - that circumvent security controls, evade detection and remove forensic evidence. As a result,
we may be unable to detect, investigate, remediate or recover from future attacks or incidents, or to avoid a material adverse impact
to our IT Systems, Confidential Information or business. There can also be no assurance that our cybersecurity risk management program
and processes, including our policies, controls or procedures, will be fully implemented, complied with or effective in protecting our
IT Systems and Confidential Information. Furthermore, given the nature of complex systems, software and services like ours, and the scanning
tools that we deploy across our networks and products, we regularly identify and track security vulnerabilities. We are unable to comprehensively
apply patches or confirm that measures are in place to mitigate all such vulnerabilities, or that patches will be applied before vulnerabilities
are exploited by a threat actor. In other situations, vulnerabilities persist even after we have issued security patches because our customers
may fail to apply patches or update their systems to newer software versions. If attackers are able to exploit critical vulnerabilities
before patches are installed or mitigating measures are implemented, significant compromises could impact our and our customers’
IT Systems and/or Confidential Information.

We and certain of our third-party
providers regularly experience cyberattacks and other incidents, and we expect such attacks and incidents to continue in varying degrees.
While to date no incidents have had a material impact on our operations or financial results, we cannot guarantee that material incidents
will not occur in the future. Any adverse impact to the availability, integrity or confidentiality of our IT