Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 24

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 24
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 or are incapable of identifying the third party that has received such digital assets through error or theft, we
or our customers will be unable to revert or otherwise recover the incorrectly transferred digital assets. Moreover, reversion or other
corrective or recovery methods of such digital assets may also take a significant time and may not result in full recovery of the incorrectly
transferred digital assets or sufficient compensation the relevant economic loss. To the extent that we or our customers are unable to
seek redress for such error or theft, such loss could have a material adverse effect on our business, financial condition and results
of operations.

Digital assets are each accessible
and controllable only by the possessor of both the unique public key and private key associated with the digital asset, wherein the public
and private keys are held in an offline or online digital wallet. To the extent a private key is lost, destroyed or otherwise compromised
and no backup of the private key is available, we or our customers will be unable to access the applicable digital asset associated with
that private key and the private key cannot be restored. As a result, any digital assets associated with such key could be irretrievably
lost. Any loss of private keys relating to digital wallets used to store the applicable digital assets could have a material adverse effect
on our business, financial condition and results of operations.

We deposit certain fund and digital assets
with cryptocurrency exchanges. If such cryptocurrency exchanges become bankrupt or otherwise unable to remit stored fund and digital assets,
we may lose these assets, and our business, financial condition and results of operations may be adversely affected.

Historically, we deposited
certain fund and digital assets with cryptocurrency exchanges that are not banking institutions. For instance, we had deposited cash and
digital assets in account maintained at FTX, which filed for bankruptcy in November 2022. The ability of a cryptocurrency exchange
to safeguard our fund is dependent on our internal control, operations, liquidity, and financial condition, as well as our proper maintenance,
use, and safekeeping of our fund and assets. Any failure by such cryptocurrency exchange to maintain the necessary controls or to manage
our digital assets and funds appropriately and in compliance with applicable regulatory requirements could result in loss of our fund.
We cannot assure you that we can be adequately compensated by such cryptocurrency exchange in the event that we suffer loss in our fund
deposited with it.

Moreover, to the extent that
cryptocurrency exchanges or other trading venues are involved in fraud or experience security failures or other operational issues,