Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 19

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 19
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 States, including the FDIC, have recently increased their scrutiny of bank partnerships with third-party financial service
providers through the release of statements, requests for information and proposed regulations. These releases have coincided with a significant
increase in the number of enforcement actions relating to banks’ third-party arrangements. These and other regulatory initiatives
by U.S. federal or state prudential banking regulators may constrain the operations of our partner banks in the United States, including
those with which we may partner in the future either in addition to or in lieu of our existing arrangements. Such banks may be prohibited
from partnering with us, or may terminate our relationship once established, as a result of increased regulatory scrutiny or changes to
applicable laws and regulations.

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Our relationship with partner
banks may also subject us to additional regulatory scrutiny, requirements and supervision. For example, we are subject to audit by Sutton
Bank in accordance with FDIC guidance related to management of vendors. We also may be subject to the examination authority of the FDIC
under the Bank Service Company Act as a result of our relationship with Sutton Bank. To the extent that we enter into similar relationships
with other partner banks, either in lieu of or in addition to our relationship with Sutton Bank, we may become subject to additional regulatory
requirements imposed indirectly by the partner bank or directly by U.S. federal or state prudential banking regulators. Additional regulatory
requirements may adversely affect us or our bank partners, including our originating bank partners, and, therefore, our business, results
of operations, financial condition and future prospects.

We may be subject to
additional regulatory scrutiny due to the recent bankruptcy case of Synapse Financial Technologies, Inc.

Fold, through its partnership
with Sutton Bank (and/or any other partner banks), may provide deposit accounts to Fold’s customers. Sutton Bank (and/or any other
partner banks) may hold funds in the deposit account in an omnibus account on behalf of customers. In certain circumstances, Sutton Bank
(and/or any other partner banks) may rely on Fold’s records for identifying customers and reconciling certain transactions made
to or from deposit accounts, including any comingled funds within the omnibus account. Any failure by Fold to maintain complete and accurate
records could create uncertainty as to fund attribution and cause delays or outages for customers seeking to withdraw funds from or through
Fold’s platform.

Certain U.S. federal and state
prudential banking regulators have cited the recent bankruptcy case of Synapse Financial