Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 55

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 55
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, or cease mining operations, register as broker-dealers and comply with applicable law, or be subject
to penalties, including fines. In addition, we could be subject to judicial or administrative sanctions for failing to sell the digital
asset or distribute block rewards in compliance with the registration requirements, or for acting as a broker, dealer, or national securities
exchange without appropriate registration. Such an action could result in injunctions, cease and desist orders, as well as civil monetary
penalties, fines, and disgorgement, criminal liability, and reputational harm.

Furthermore, the SEC may determine
that certain digital assets or interests, for example tokens offered and sold in initial coin offerings (“ ICO”), may constitute
securities under the “ Howey” test as stated by the United States Supreme Court. As such, ICO offerings would require
registration under the Securities Act or an available exemption therefrom for offers or sales in the United States to be lawful.
Section 5(a) of the Securities Act provides that, unless a registration statement is in effect as to a security, it is unlawful
for any person, directly or indirectly, to engage in the offer or sale of securities in interstate commerce. Section 5(c) of
the Securities Act provides a similar prohibition against offers to sell, or offers to buy, unless a registration statement has been filed.
Although we do not intend to be engaged in the offer or sale of securities in the form of ICO offerings, and we do not believe our mining
activities would require registration for us to conduct such activities and accumulate digital assets, the SEC, CFTC, Nasdaq, IRS or other
governmental or quasi-governmental agency or organization may conclude that our activities involve the offer or sale of “securities,”
or ownership of “investment securities,” and we may be subject to regulation or registration requirements under various federal
laws and related rules. Such regulation or the inability to meet the requirements to continue operations, would have a material adverse
effect on our business and operations. We may also face similar issues with various state securities regulators who may interpret our
actions as subjecting us to regulation, or requiring registration, under state securities laws, banking laws, or money transmitter and
similar laws, which are also an unsettled area or regulation that exposes us to risks.

Current and future legislation and rulemaking
regarding digital assets may result in extraordinary, non-recurring expenses and could have a material adverse effect on our
business, financial condition and results of operations.

Current and