Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 79

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 79
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 need to partner
with a different financial institution with authority to provide services substantially similar to our Bitcoin services to continue to
offer these services. If we partner with a new crypto service provider, our Bitcoin-related services would be disrupted and delayed
as customers would be required to open new accounts with a different Bitcoin service provider, and as we transition connectivity of our
information technology systems to such different financial institution partner. We also may face increased costs and compliance burdens
if our program agreement with one of the Bitcoin Service Providers is terminated. We entered into our agreement with Fortress in June,
2023, whereby Fortress would custody Bitcoin on behalf of our customers itself or use BitGo as a sub-custodian in states where BitGo was
not authorized to provide custody services directly. In August, 2024, we entered into an agreement directly with BitGo, and we anticipate
that over time more of our customers will be serviced under this direct relationship with BitGo.

Fortress is subject to regulation
and supervision by the Division of Financial Institutions of the Nevada Department of Business and Industry, and BitGo is subject to regulation
and supervision by the Division of Banking of the South Dakota Department of Labor and Regulation. In addition, certain custodial services
are provided by BitGo’s affiliate BitGo New York Trust Company LLC, which is subject to regulation and supervision by the New York
Department of Financial Services. In addition, the Bitcoin Service Providers are subject to regulation and supervision by many other state
banking and financial institution regulators (individually and collectively, “State Banking Departments”). Many laws and regulations
that apply directly to the Bitcoin Service Providers indirectly impact us (and our products) as a partner of the Bitcoin Service Providers.
As such, our partnerships with the Bitcoin Service Providers may be subject to the supervision and enforcement authority of the State
Banking Departments.

Our customers enter
into agreements directly with Sutton Bank and our Bitcoin Service Providers.

Our customers enter into agreements
for banking services directly with Sutton Bank, and enter into agreements for Bitcoin-related services directly with one or more of the
Bitcoin Service Providers. Our third-party service providers have not agreed to indemnify us for losses based on their breaches of their
agreements with our customers. Although our terms of use clearly state that we are not responsible for the services provided by those
third parties, it is possible that customers could blame us for a failure by one of those third parties to fulfill its obligations. This
could have a material adverse impact on our reputation and business.

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