Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 243

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 243
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 in customers finding our services
more risky and less attractive as compared to other types of rewards cards, and any failure to increase our customer base, discontinuation
or reduction in use of our platform and products by existing customers as a result could adversely impact our business, operating results,
and financial condition.

27

The theft, loss, or destruction of private keys required to access
any Bitcoin may be irreversible. If we or our Bitcoin Service Providers are unable to access private keys for the Bitcoin wallets holding
our or our customers’ Bitcoin, or if we or our Bitcoin Service Providers experience a hack or other data loss relating to their
ability to access any Bitcoin, it could cause regulatory scrutiny, reputational harm, and other losses.

Bitcoin is generally controllable only by the possessor
of the unique private key relating to the digital wallet in which the Bitcoin is held. While blockchain protocols typically require public
addresses to be published when used in a transaction, private keys must be safeguarded and kept private in order to prevent a third party
from accessing the Bitcoin held in such a wallet. To the extent that any of the private keys relating to wallets containing Bitcoin held
for the benefit of us or our customers is lost, destroyed, or otherwise compromised or unavailable, and no backup of the private key is
accessible, we or the Bitcoin Service Providers will be unable to access the Bitcoin assets held in the related wallet. Further, we cannot
provide assurance that the private keys to Bitcoin wallets held by us directly or by our service providers will not be hacked or compromised.
Bitcoin assets and blockchain technologies have been, and may in the future be, subject to security breaches, hacking, or other malicious
activities. Any loss of private keys relating to, or hack or other compromise of, digital wallets used to store our customers’ Bitcoin
could adversely affect our customers’ ability to access or sell their Bitcoin. In addition, if any of our customers’ Bitcoin
is lost, we may choose, or in some cases we may be required to, reimburse our customers for their losses, which could subject us to significant
financial losses in addition to losing customer trust in us and our products. As such, any loss of private keys due to a hack, employee
or service provider misconduct or error, or other compromise by third parties could hurt our brand and reputation, result in significant
losses, and adversely impact our business.

We believe this risk is remote because the majority
of the Bitcoin held on behalf of our customers is retained in multi-signature “