Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 98

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 98
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 our third -partycustody partners Fortress Trust LLC (“Fortress”) and BitGo Trust Company, Inc. (“BitGo” and together with Fortress, the “Bitcoin Service Providers”) safeguard Bitcoin on behalf of our customers. Safeguarding customers’ cash and Bitcoin is integral to the trust we build with our customers. We believe our and our partners’ policies, procedures, operational controls and controls over financial reporting, protect us from material risks surrounding the safeguarding of these assets and conflicts of interest. Our partners’ controls include among others, controls over the segregation of corporate Bitcoin balances from customer Bitcoin balances, controls over the processes of customer Bitcoin deposits and customer Bitcoin withdrawals and corporate and customer fiat balances. Our financial statements and disclosures, as a whole, will be available through periodic filings on a quarterly basis, and compliant with annual audit requirements of Article 3 of Regulation S -X. As of September30, 2024, 92% of our proprietary Bitcoin was held at BitGo, with the remaining amounts held in a multi -signaturecold storage wallet administered by Unchained Capital wallet. Bitcoin that we hold at BitGo is held in separate wallets under Fold’s name and is not commingled with the Bitcoin held on behalf of our customers, BitGo’s other customers, or BitGo itself. As of September30, 2024, 99% of our proprietary Bitcoin that we custody with BitGo was held in multi -signaturecold storage wallets, with the remainder held in self -managedhot wallets for operational purposes. Bitcoin that we hold in self -custodyis stored in an m -of-nmulti -signaturewallet administered by Unchained Capital and is therefore not held in a custodial wallet. Within this m -of-nwallet, Fold directly holds the number of private keys necessary to initiate a transaction, while Unchained holds a backup private key that can be used to restore a Fold key if necessary. Each of the private keys for our Unchained Capital wallet is stored in geographically separate locations. Bitcoin held on behalf of our customers is stored in one of three places: (1) directly at Fortress; (2) directly at BitGo, or (3) at BitGo in a sub -custodialarrangement with Fortress. (1)Bitcoin held on behalf of our customers directly at Fortress is held primarily in omnibus cold storage wallets for which Fortress controls the private keys. At any given time, approximately 90% of Bitcoin held in this capacity is held in omnibus cold storage wallets