Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 278

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 278
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, regulations, and standards covering
marketing, advertising, and other activities conducted by telephone, email, mobile devices, and the internet may be or become applicable
to our business, such as the Federal Communications Act, the Federal Wiretap Act, the Electronic Communications Privacy Act, the Telephone
Consumer Protection Act (the “TCPA”), the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003
(the “CAN-SPAM Act”), and similar state consumer protection and communication privacy laws, such as California’s Invasion
of Privacy Act.

Even though we believe we and our vendors are generally
in compliance with applicable laws, rules and regulations relating to privacy and data security, these laws are in some cases relatively
new and the interpretation and application of these laws are uncertain. Any failure or perceived failure by us to comply with data privacy
laws, rules, regulations, industry standards and other requirements could result in proceedings or actions against us by individuals,
consumer rights groups, government agencies, or others. We could incur significant costs in investigating and defending such claims and,
if found liable, pay significant damages or fines or be required to make changes to our business. Further, these proceedings and any subsequent
adverse outcomes may subject us to significant negative publicity and an erosion of trust. If any of these events were to occur, our business,
results of operations, and financial condition could be materially adversely affected.

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There are various risks associated with the facilitation of payments
from customers, including risks related to fraud, compliance with existing and evolving rules and regulations, and reliance on third parties
and any failure to comply with laws and regulations related to payments, fraud, anti-money laundering and money transmission or failure
of a third party to perform could harm our business, results of operations and financial condition.

We rely upon third-party service providers, payment
processors and financial institution partners to provide key components of our services on our behalf, including payments processing and
disbursement. Our utilization of such payment processing tools may be impacted by factors outside of our control, including disruptions
in the payment processing industry generally. If these service providers, processors or partners do not perform adequately, or if our
relationships with these service providers were to change or terminate, it could negatively affect our customers’ ability to complete
transactions, and our ability to operate our services. This could decrease revenue, increase costs, lead to potential legal liability
and negatively impact our brands and business. In addition, if these providers increase the fees they charge us