Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 32

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 32
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 fail. Some of our systems or the systems of our third-party service providers and partners are not
fully redundant, and our or their disaster recovery planning may not be sufficient for all possible outcomes or events.

If any of our systems, or those
of our third-party service providers, are disrupted for any reason, our products and services may be interrupted or fail, resulting in
unanticipated disruptions, slower response times and delays in our customers’ trade execution and processing, failed settlement
of trades, incomplete or inaccurate accounting, recording or processing of trades, unauthorized trades, loss of customer information,
increased demand on limited customer support resources, customer claims, complaints with regulatory organizations, lawsuits, or enforcement
actions. A prolonged interruption in the availability or reduction in the availability, speed, or functionality of our products and services
could harm our business. Significant or persistent interruptions in our services could cause current or potential customers to believe
that our systems are unreliable, leading them to switch to our competitors or to avoid or reduce the use of our products and services,
and could permanently harm our reputation and brands. Moreover, to the extent that any system failure or similar event results in damages
to our customers, these customers could seek significant compensation or contractual penalties from us for their losses, and those claims,
even if unsuccessful, would likely be time-consuming and costly for us to address. Problems with the reliability or security of our systems
would harm our reputation and the cost of remedying these problems could negatively affect our business, operating results, and financial
condition.

In addition, we are continually
improving and upgrading our information systems and technologies. Implementation of new systems and technologies is complex, expensive,
time-consuming, and may not be successful. If we fail to timely and successfully implement new information systems and technologies, or
improvements or upgrades to existing information systems and technologies, or if such systems and technologies do not operate as intended,
it could have an adverse impact on our business, internal controls (including internal controls over financial reporting), operating results,
and financial condition.

Our or our third-party
partners’ failure to safeguard and manage our and our customers’ fiat currencies and Bitcoin could adversely impact our business,
operating results, and financial condition.

Our third-party banking partner,
Sutton Bank (“Sutton Bank”) holds cash on behalf of our customers, and our third-party custody partners Fortress Trust LLC
(“Fortress”) and BitGo Trust Company, Inc. (“BitGo” and together with Fortress, the “Bitcoin Service Providers