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

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 25
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 and service providers. Moreover,
new laws, regulations, or interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions,
including preventing or delaying us from offering certain products or services offered by our competitors or could impact how we offer
such products and services. Adverse changes to, or our failure to comply with, any laws and regulations have had, and may continue to
have, an adverse effect on our reputation and brand and our business, operating results, and financial condition.

Our relationships with bank partners in the United States may
subject us and our partners to additional regulatory scrutiny.

Prudential banking regulators in the United States,
including the FDIC, have recently increased their scrutiny of bank partnerships with third-party financial service providers through the
release of statements, requests for information and proposed regulations. These releases have coincided with a significant increase in
the number of enforcement actions relating to banks’ third-party arrangements. These and other regulatory initiatives by U.S. federal
or state prudential banking regulators may constrain the operations of our partner banks in the United States, including those with which
we may partner in the future either in addition to or in lieu of our existing arrangements. Such banks may be prohibited from partnering
with us, or may terminate our relationship once established, as a result of increased regulatory scrutiny or changes to applicable laws
and regulations.

Our relationship with partner banks may also subject
us to additional regulatory scrutiny, requirements and supervision. For example, we are subject to audit by Sutton Bank in accordance
with FDIC guidance related to management of vendors. We also may be subject to the examination authority of the FDIC under the Bank Service
Company Act as a result of our relationship with Sutton Bank. To the extent that we enter into similar relationships with other partner
banks, either in lieu of or in addition to our relationship with Sutton Bank, we may become subject to additional regulatory requirements
imposed indirectly by the partner bank or directly by U.S. federal or state prudential banking regulators. Additional regulatory requirements
may adversely affect us or our bank partners, including our originating bank partners, and, therefore, our business, results of operations,
financial condition and future prospects.

We may be subject to additional regulatory scrutiny due to the
recent bankruptcy case of Synapse Financial Technologies, Inc.

Fold, through its partnership with Sutton Bank (and/or
any other partner banks), may provide deposit accounts to Fold’s customers. Sutton Bank (and/or any other partner banks) may hold
funds in the