Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 58

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 58
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, including the SEC, with
respect to the legal status of any forked asset. If a fork occurs and one of our Bitcoin Service Providers determines not to support one
of the assets created as a result of the fork, this could cause us or our customers to miss an opportunity regarding a new digital asset.
In addition, any suspension of services ahead of a fork could cause customer complaints and cause us to be exposed to liability, even
in circumstances where we do not have the ability to alter a Bitcoin Service Provider’s policy regarding a fork. To the extent a
forked asset is determined to be a “security” under applicable federal securities laws, any distribution of such forked asset
would expose the distributor thereof to significant liability under such laws. For additional information regarding the risks and liabilities
associated with uncertainty regarding the status of bitcoin and other cryptocurrencies as a “security,” please see the risk
factor above entitled “Bitcoin’s status as a “security” in any relevant jurisdiction, as well as the status of our Bitcoin-related products and services, is subject to a high degree of uncertainty and if we are unable to properly characterize a product or service offering, we may be subject to regulatory scrutiny, inquiries, investigations, fines, and other penalties, which may adversely affect our business, operating results, and financial condition.”

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Future developments
regarding the treatment of crypto assets for U.S. and foreign tax purposes could adversely impact our business.

Due to the new and evolving nature
of crypto assets and the absence of comprehensive legal and tax guidance with respect to crypto asset products and transactions, many
significant aspects of the U.S. and foreign tax treatment of transactions involving crypto assets, such as the purchase and sale of Bitcoin
on our platform, are uncertain, and it is unclear whether, when and what guidance may be issued in the future on the treatment of crypto
asset transactions for U.S. and foreign tax purposes.

In 2014, the IRS released Notice
2014-21, discussing certain aspects of “virtual currency” for U.S. federal income tax purposes and, in particular, stating
that such virtual currency (i) is “property,” (ii) is not “currency” for purposes of the rules relating to foreign
currency gain or loss, and (iii) may be held as a capital asset. From time to time, the IRS has released other notices and rulings relating
to the tax treatment of virtual currency or crypto assets reflecting the IRS’s position on certain issues