Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 75

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 75
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assessed under, or increased costs associated with compliance with, payment network rules or payment card provider rules could lead to
increased fees and costs for us or our customers, which may negatively impact payments on our services and usage of our services. Payment
networks have imposed, and may impose in the future, special fees on the purchase of crypto assets, including on our platform, which could
negatively impact us and significantly increase our costs. We could attempt to pass these increases along to our customers, but this could
negatively impact our business or result in the loss of customers, thereby reducing our revenue and earnings. If competitive practices
prevent us from passing along the higher fees to our customers in the future, we may have to absorb all or a portion of such increases,
thereby increasing our operating costs and reducing our earnings.

Due to the risk of our platform
being used for illegal or illicit activity, any perceived or actual breach of compliance by us with respect to anti-money laundering (“AML”)
laws, rules and regulations, including the Bank Secrecy Act, USA Patriot Act and Title 18 U.S.C. Sections 1956-57 and 1960, could have
a significant impact on our reputation and could cause us to lose customers, prevent us from obtaining new customers, require us to expend
significant funds to remedy civil and criminal problems caused by violations and to avert further violations and expose us to legal risk
and potential liability that could have a material effect on our business. Several of these laws require certain companies to adopt an
AML compliance program, including those companies that are characterized as a federal money services business or state money transmitter.
Moreover, many states have their own AML and money transmitter and virtual currency regulatory regimes and interpretations and applications
of those legal principles are complex and varied. If the federal government or any state government took the position that we were a money
services business, money transmitter or virtual currency business, they could require us to register as such and obtain money transmitter
or virtual currency licenses. Furthermore, should a federal or state regulator make a determination that we have operated as an unlicensed
money services business, money transmitter, or virtual currency business, we could be subject to civil and criminal fines, penalties,
costs, legal fees, reputational damage or other negative consequences, all of which may have an adverse effect on our business, financial
condition and results of operations.

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Risks Related to Third Parties

We rely on