Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 258

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 258
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 customers, we cannot ensure that
we will be able to detect all illegal activity on our platform. If any of our customers use our platform for such illegal activities or
we are found responsible for failure to prevent the use of our products or services for illegal activities, our business could be adversely
affected.

Our compliance and risk management methods might not be effective
and may result in outcomes that could adversely affect our reputation, operating results, and financial condition.

Our ability to comply with applicable complex and
evolving laws, regulations, and rules is largely dependent on the establishment, maintenance, and scaling of our compliance, internal
audit, and reporting systems to continuously keep pace with our customer activity and transaction volume, as well as our ability to attract
and retain qualified compliance and other risk management personnel. While we have devoted significant resources to develop policies and
procedures to identify, monitor, and manage our risks, and expect to continue to do so in the future, we cannot assure you that our policies
and procedures are and will always be effective or that we have been and will always be successful in monitoring or evaluating the risks
to which we are or may be exposed in all market environments or against all types of risks, including unidentified or unanticipated risks.
Our risk management policies and procedures rely on a combination of technical and human controls and supervision that are subject to
error and failure. Some of our methods for managing risk are discretionary by nature and are based on internally developed controls and
observed historical market behavior, and also involve reliance on standard industry practices. Accordingly, in the future, we may identify
gaps in such policies and procedures or existing gaps may become higher risk, and may require significant resources and management attention.
Our risk management policies and procedures also may not adequately prevent losses due to technical errors if our testing and quality
control practices are not effective in preventing failures. In addition, we may elect to adjust our risk management policies and procedures
to allow for an increase in risk tolerance, which could expose us to the risk of greater losses.

35

Our regulators and financial institution partners,
including their regulators, may periodically review our compliance program, including our policies and procedures, and with applicable
law. We may from time to time receive examination reports citing violations of applicable law and inadequacies in existing compliance
programs requiring us to enhance certain practices with respect to our practices or compliance program, including due diligence, training,
monitoring, reporting, and recordkeeping. If we fail to comply with these, or do not adequately remed