Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 273

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 273
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 and reputation, material financial penalties,
and legal liability, which would materially adversely affect our business, results of operations, and financial condition.

We rely on computer systems, hardware, software,
technology infrastructure and online sites and networks for both internal and external operations that are critical to our business (collectively,
“IT Systems”). We own and manage some of these IT Systems but also rely on third parties for a range of IT Systems and related
products and services, including but not limited to cloud computing services. We and certain of our third-party providers collect, maintain
and process data about customers, employees, business partners and others, including information about individuals and their financial
assets (such as Bitcoin), as well as proprietary information belonging to our business such as trade secrets (collectively, “Confidential
Information”).

We face numerous and evolving cybersecurity risks
that threaten the confidentiality, integrity and availability of our IT Systems and Confidential Information, including from diverse threat
actors, such as state-sponsored organizations, opportunistic hackers and hacktivists, as well as through diverse attack vectors, such
as social engineering/phishing, malware (including ransomware), malfeasance by insiders, human or technological error, and as a result
of malicious code embedded in open-source software, or misconfigurations, bugs or other vulnerabilities in commercial software that is
integrated into our (or our suppliers’ or service providers’) IT Systems, products or services. As knowledge and techniques
in cryptography continue to advance, threat actors may exploit these advancements to develop more sophisticated and effective attack methods,
increasing the frequency and severity of cyberattacks as well. Because we make extensive use of third party suppliers, service providers,
and partners (including our partnerships with crypto wallet providers and financial institutions), successful cyberattacks that disrupt
or result in unauthorized access to third party IT Systems can materially impact our operations and financial results.

Moreover, we may acquire companies with cybersecurity
vulnerabilities and/or unsophisticated security measures, which exposes us to significant cybersecurity, operational, and financial risks.
Remote and hybrid working arrangements at our company (and at our third-party providers) also increase cybersecurity risks due to the
challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home
networks. Additionally, any integration of artificial intelligence in our or any service providers’ operations, products or services
is expected to pose new or unknown cybersecurity risks and challenges. Because our products and services are integrated with our customers’
systems and