Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 58

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 58
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 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 remediate certain findings, regulators
and financial institution partners could take a variety of actions that could impair our ability to conduct our business, including, but
not limited to, delaying, denying, withdrawing, or conditioning approval of certain products and services. In addition, regulators have
broad enforcement powers to censure, fine, issue cease and desist orders, prohibit us from engaging in some of our business activities,
or revoke our licenses. We face significant intervention by regulatory authorities, including extensive auditing and surveillance activities,
and will continue to face the risk of significant intervention by regulatory authorities and financial institution partners in the future.
In the case of non-compliance or alleged non-compliance, we could be subject to investigations and proceedings that may result in substantial
penalties or civil lawsuits, including by customers, for damages, which can be a significant loss to us or our financial institution partner(s).
Any of these outcomes would adversely affect our reputation and brand and our business, operating results, and financial condition. Some
of these outcomes could adversely affect our ability to conduct our business.

We may suffer losses due to abrupt and erratic market movements.

The Bitcoin market has been characterized by significant
volatility and unexpected price movements, and has previously experienced significant declines. Bitcoin may become more volatile and less
liquid in a very short period of time. A series of recent high-profile bankruptcies, closures, liquidations, regulatory enforcement actions
and other events relating to companies operating in the digital asset industry, including the filings for bankruptcy protection by Three
Arrows Capital, Celsius Network, Voyager Digital, FTX Trading and Genesis Global Capital, the closure or liquidation of certain financial
institutions that provided lending and other services to the digital assets industry, including Signature Bank and Silvergate Bank, SEC
enforcement actions against Coinbase, Inc. and Binance Holdings Ltd., the placement of Prime Trust, LLC