Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 73

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 73
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 results.

Moreover, we may acquire companies with cybersecurity
vulnerabilities and/or unsophisticated security measures, which exposes us to significant cybersecurity, operational, and financial risks.
Remote and hybrid working arrangements at our company (and at our third-party providers) also increase cybersecurity risks due to the
challenges associated with managing remote computing assets and security vulnerabilities that are present in many non-corporate and home
networks. Additionally, any integration of artificial intelligence in our or any service providers’ operations, products or services
is expected to pose new or unknown cybersecurity risks and challenges. Because our products and services are integrated with our customers’
systems and processes, any circumvention or failure of our cybersecurity defenses or measures could compromise the confidentiality, integrity,
and availability of our customers’ own IT Systems and/or Confidential Information as well. Moreover, certain threats are designed
to remain dormant or undetectable until launched against a target and we may not be able to implement adequate preventative measures.
If such an event were to occur and cause interruptions in our operations, result in the unauthorized access, disclosure, loss, processing,
or other compromise of Personal Information or Confidential Information, or jeopardize the confidentiality, integrity, or availability
of our information systems or any information residing therein, it could result in a material disruption of our development programs and
our business operations, whether due to a loss of our trade secrets or other similar disruptions.

Some of the federal, state, and foreign government
requirements include obligations of companies to notify individuals of certain cybersecurity breaches involving particular personal information,
which could result from breaches experienced by us or by our vendors, contractors, or organizations with which we have formed strategic
relationships. Even though we may have contractual protections with such vendors, contractors, or other organizations, notifications and
follow-up actions related to a cybersecurity breach could impact our reputation, cause us to incur significant costs, including legal
expenses, harm customer confidence, hurt our expansion into new markets, cause us to incur remediation costs, or cause us to lose existing
customers.

43

Further, the cryptocurrency industry is a frequent
target for cyberattacks, including hacks of exchanges and wallets. The underlying technology of cryptocurrencies, including blockchain,
is complex and still developing, which means technical issues, bugs, or vulnerabilities could impact our operations and the security of
user funds. Additionally, any actual or perceived breach or cybersecurity attack directed at other financial institutions or crypto companies,
whether or not we are directly impacted, could lead to a general loss of customer confidence in the crypt