Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 52

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 52
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 internally developed
controls and observed historical market behavior, and also involve reliance on standard industry practices. Accordingly, in the future,
we may identify gaps in such policies and procedures or existing gaps may become higher risk, and may require significant resources and
management attention. Our risk management policies and procedures also may not adequately prevent losses due to technical errors if our
testing and quality control practices are not effective in preventing failures. In addition, we may elect to adjust our risk management
policies and procedures to allow for an increase in risk tolerance, which could expose us to the risk of greater losses.

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Our regulators and financial
institution partners, including their regulators, may periodically review our compliance program, including our policies and procedures,
and with applicable law. We may from time to time receive examination reports citing violations of applicable law and inadequacies in
existing compliance programs requiring us to enhance certain practices with respect to our practices or compliance program, including
due diligence, training, monitoring, reporting, and recordkeeping. If we fail to comply with these, or do not adequately remediate certain
findings, regulators and financial institution partners could take a variety of actions that could impair our ability to conduct our business,
including, but not limited to, delaying, denying, withdrawing, or conditioning approval of certain products and services. In addition,
regulators have broad enforcement powers to censure, fine, issue cease and desist orders, prohibit us from engaging in some of our business
activities, or revoke our licenses. We face significant intervention by regulatory authorities, including extensive auditing and surveillance
activities, and will continue to face the risk of significant intervention by regulatory authorities and financial institution partners
in the future. In the case of non-compliance or alleged non-compliance, we could be subject to investigations and proceedings that may
result in substantial penalties or civil lawsuits, including by customers, for damages, which can be a significant loss to us or our financial
institution partner(s). Any of these outcomes would adversely affect our reputation and brand and our business, operating results, and
financial condition. Some of these outcomes could adversely affect our ability to conduct our business.

We may suffer losses
due to abrupt and erratic market movements.

The Bitcoin market has been characterized
by significant volatility and unexpected price movements, and has previously experienced significant declines. Bitcoin may become more
volatile and less liquid in a very short period of time. A series of recent high-profile bankruptcies, closures, liquidations, regulatory
enforcement