Company: FUFU
Filing Date: 2025-04-21
Form Type: 20-F
Source: 0001213900-25-033733
Chunk: 59

Company: Bitfufu Inc.
Filing Date: 2025-04-21
Form: 20-F
Item: Item 3
Chunk 59
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 digital assets or ICOs, including taking enforcement action
against any person engaged in the sale of unregistered securities in violation of the Securities Act or any person acting as an unregistered
investment company in violation of the Investment Company Act. Because the SEC has held that certain digital assets are securities based
on the current rules and law, we may be required to register and comply with the rules and regulations under federal securities laws.

We cannot be certain as to
how future regulatory developments will impact the treatment of digital assets under the law, including, but not limited to, whether digital
assets will be classified as a security, commodity, currency and/or new or other existing classification. Such additional regulations
may result in extraordinary, non- recurring expenses, thereby materially and adversely affecting an investment in us. If we determine
not to comply with such additional regulatory and registration requirements, we may seek to cease certain or all of our operations. Any
such action could have a material adverse effect on our business, financial condition and results of operations.

Assertion of jurisdiction by U. S. and foreign
regulators, or other government entities over digital assets and digital asset industry may subject market participants, including us,
to additional regulation and investigation.

Recent enforcement actions
by the SEC with respect to digital assets related insider-trading and fraud activities have demonstrated U. S. regulators’ willingness
to assert jurisdiction on digital assets and related transaction. For example, the SEC had asserted that it had jurisdictions over digital
asset trades executed on the Ethereum blockchain as such transactions occurred in the United States, where blockchain validation nodes
were clustered. Regulators in other jurisdictions may adopt similar views in the future. Assertion of jurisdiction by U. S. and foreign
regulators may subject market participants in the digital asset industry, including us, to evolving and complex regulation, and significantly
increase their compliance costs. Although we currently are not aware of any regulatory proceeding or investigation against our operations,
any failure on our part to comply with applicable regulation, including those asserted by U. S. and foreign regulators in the future, may
subject it to regulatory investigation and penalties, potentially across multiple jurisdictions.

We may experience difficulties in establishing
relationships with banks, leasing companies, insurance companies and other financial institutions that are willing to provide us with
customary financial services and products, which could have a material adverse effect on our business, financial condition and results
of operations.

As an early stage company
with operations focused in the digital asset industry, we have in the past experienced, and may