Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 262

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 262
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 Bitcoin. Once signed, the transaction is broadcasted to the Bitcoin network to be included in a new block by miners.
If we wish to purchase Bitcoin, the seller would need to send a transaction to our designated wallet in this manner. A number of errors
can occur in the process of transmitting Bitcoin, such as typos, mistakes, or the failure to include the information required by the blockchain
network, which could result in losses of our proprietary Bitcoin or, where our customers choose to transfer and use Bitcoin on its underlying
blockchain network, the Bitcoin held by us on behalf of our customers. For instance, a customer may incorrectly enter our crypto custody
partner’s wallet’s address or the desired recipient’s public key when depositing and withdrawing Bitcoin, respectively.
Alternatively, a customer may send Bitcoin to a wallet address that the customer does not own, control or hold the private keys to. If
any of the foregoing errors occur, all of the Bitcoin sent by the customer will be permanently and irretrievably lost with no means of
recovery. We have encountered and expect to continue to encounter similar incidents with our customers, and although we have not experienced
such incidents with respect to Bitcoin that we hold on a proprietary basis it is possible that they could occur in the future. Such incidents
could result in customer disputes, damage to our brand and reputation, legal claims against us, and financial liabilities, any of which
could adversely affect our business.

37

BitGo has represented that they will safekeep all
Bitcoin held in custody by them, and that they have procedures to process redemptions and withdrawals expeditiously, following the terms
of the applicable user agreements. Our customers have not experienced excessive redemptions or withdrawals, or prolonged suspended redemptions
or withdrawals, of Bitcoin to date. However, similar to traditional financial institutions, our Bitcoin Service Providers may experience
temporary process-related withdrawal delays. For example, like traditional financial institutions, our Bitcoin Service Providers may experience
such delays if there is a significant volume of withdrawal requests that is vastly beyond anticipated levels. This does not mean our Bitcoin
Service Providers cannot or will not satisfy withdrawals, but this may mean a temporary delay in satisfying withdrawal requests, which
our customers still expect to be satisfied within the withdrawal timelines set forth in the applicable user agreements or otherwise communicated
by us or our Bitcoin Service Providers. To the extent we or one of our Bitcoin Service Providers have process-related delays, even if
brief or due to blockchain network congestion or heightened redemption activity,