Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 30

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 30
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disclosures to OFAC or responded to administrative subpoenas from OFAC. Certain of these voluntary self-disclosures are currently
under review by OFAC. To date, none of those proceedings has resulted in a monetary penalty or finding of violation. Any present
or future government inquiries relating to sanctions could result in negative consequences for us, including costs related to government
investigations, financial penalties, and harm to our reputation. The impact on us related to such matters could be substantial. Although
we have implemented controls, and are working to implement additional controls and screening tools designed to prevent sanctions violations,
there is no guarantee that we will not inadvertently provide access to our products and services to sanctioned parties or jurisdictions
in the future.

20

Regulators worldwide frequently study each other’s
approaches to the regulation of the cryptoeconomy. Consequently, developments in any jurisdiction may influence other jurisdictions. New
developments in one jurisdiction may be extended to additional services and other jurisdictions. As a result, the risks created by any
new law or regulation in one jurisdiction are magnified by the potential that they may be replicated, affecting our business in another
place or involving another service. Conversely, if regulations diverge worldwide, we may face difficulty adjusting our products, services,
and other aspects of our business with the same effect. These risks are heightened as we face increased competitive pressure from other
similarly situated businesses that engage in regulatory arbitrage to avoid the compliance costs associated with regulatory changes.

The complexity of U.S. federal and state and
international regulatory and enforcement regimes, coupled with the global scope of our operations and the evolving global regulatory environment,
could result in a single event prompting a large number of overlapping investigations and legal and regulatory proceedings by multiple
government authorities in different jurisdictions. Any of the foregoing could, individually or in the aggregate, harm our reputation,
damage our brand and business, and adversely affect our operating results and financial condition. Due to the uncertain application of
existing laws and regulations, it may be that, despite our regulatory and legal analysis concluding that certain products and services
are currently unregulated, such products or services may indeed be subject to financial regulation, licensing, or authorization obligations
that we have not obtained or with which we have not complied. As a result, we are at a heightened risk of enforcement action, litigation,
regulatory, and legal scrutiny which could lead to sanctions, cease and desist orders, or other penalties and censures which could significantly
and adversely affect our continued operations