Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 49

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 49
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 continually evolving forms of fraud to be effective. There can be no guarantee that we will be successful in detecting
and resolving these disputes or defending ourselves in any of these matters, and any failure may result in impaired relationships with
our customers, damage to our brand and reputation, and substantial fines and damages. In some cases, the measures we have implemented
to detect and deter fraud have led to poor customer experiences, including indefinite account inaccessibility for some of our customers,
which increases our customer support costs and can compound damages. We could incur significant costs in compensating our customers, such
as if a transaction was unauthorized, erroneous, or fraudulent. We could also incur significant legal expenses resolving and defending
claims, even those without merit. To the extent we are found to have failed to fulfill our regulatory obligations, we could become subject
to conditions that could make operations more costly, impair our ability to grow, and adversely impact our operating results. We may in
the future become subject to investigation and enforcement action by state, federal, and international consumer protection agencies, including
the Consumer Financial Protection Bureau (the “CFPB”), the Federal Trade Commission (the “FTC”), the Federal Insurance
Corporation (the “FDIC”) and state attorneys general in the United States, each of which monitors customer complaints
against us and, from time to time, escalates matters for investigation and potential enforcement against us.

While certain of our customer agreements contain
arbitration provisions with class action waiver provisions that may limit our exposure to consumer class action litigation, some federal,
state, and foreign courts have refused or may refuse to enforce one or more of these provisions, and there can be no assurance that we
will be successful in enforcing these arbitration provisions, including the class action waiver provisions, in the future or in any given
case. Legislative, administrative, or regulatory developments may directly or indirectly prohibit or limit the use of pre-dispute arbitration
clauses and class action waiver provisions. Any such prohibitions or limitations on or discontinuation of the use of such arbitration
or class action waiver provisions could subject us to additional lawsuits, including additional consumer class action litigation, and
significantly limit our ability to avoid exposure from consumer class action litigation.

31

We may from time to time make acquisitions and investments, which
could require significant management attention, disrupt our business, result in dilution to our stockholders, and adversely affect our
financial results.

As part of our business strategy, we may become
active in acquiring and