Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 38

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 38
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 addition, extraordinary volumes of usage could cause our computer systems to operate at an unacceptably slow speed or even
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”)