Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 279

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 279
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, our operating expenses
could increase. Alternatively, if we respond by increasing the fees we charge to our customers, some customers may stop using our services
or even close their accounts altogether.

Moreover, if we or any of our third-party payment
processors or financial institution partners experience a security breach affecting payment card information, we could be subjected to
fines, penalties and assessments arising out of state and federal regulatory enforcement, liability to consumers, the major card brands’
rules and regulations, contractual indemnification obligations or other obligations contained in user agreements and similar contracts,
and we may lose our ability to accept card payments for our services.

Our ability to expand our services into additional
countries is dependent upon the third-party service providers and partners we use to support our services. As we expand the availability
of our services to additional markets or make new payment methods available to our customers in the future, we may become subject to additional
and evolving regulations and compliance requirements, and may be exposed to heightened fraud risk, which could lead to an increase in
our operating expenses.

The laws and regulations related to payments and
financial services are complex and vary across different jurisdictions in the U.S. and globally. Furthermore, changes in laws, rules
and regulations have occurred and may occur in the future, which may impact our business practices. We may be required to expend considerable
time and effort to determine if such laws and regulations apply to our business and may be required to spend significant time and effort
to comply, and ensure we are in compliance, with those laws and regulations. Any failure or claim of our failure to comply or any failure
by our third-party service providers and partners to comply with such laws and regulations or other requirements, including the payment
network rules and Payment Card Industry Data Security Standard, could divert substantial resources, result in liabilities or force us
to stop offering our services, which will harm our business and results of operations.

There can be no assurance that we meet, or we will
be able to meet, all compliance obligations under applicable law, including obtaining any such licenses in all of the jurisdictions we
operate in or offer a service in, and, even if we were able to do so, there could be substantial costs and potential product changes involved
in complying with such laws, which could have a material and adverse effect on our business financial condition and results of operations.
Any noncompliance by us in relation to existing or new laws and regulations, or any alleged noncompliance, could result in reputational
damage