Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 221

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1A
Chunk 221
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 in the ability of the Trust to fulfill
its responsibilities under the Custody Agreement, occurs. Transferring maintenance responsibilities of the Trust’s account
at the Bitcoin Custodian to another custodian may be complex and could subject the Trust’s bitcoin to the risk of loss during
the transfer, which could have a negative impact on the performance of the Shares or result in loss of the Trust’s assets.
Also, if the Bitcoin Custodian becomes insolvent, suffers business failure, ceases business operations, defaults on or fails to
perform its obligations under the Custody Agreement or Clearing Agreement with the Trust, or abruptly discontinues the services
it provides to the Trust for any reason, the Trust’s operations would be adversely affected.

On October 19, 2023, Gemini, the Bitcoin Custodian
for the Trust, was named in a complaint filed by the New York Attorney General (“NYAG Lawsuit”) against Gemini and
other entities, including Genesis and its affiliates (collectively, the “Genesis Entities”) in a New York state court,
alleging, inter alia, that Gemini had violated New York’s Martin Act by soliciting money from the public, including persons
in New York, with false assurances that an investment program called Gemini Earn, pursuant to which customers of Gemini could
deposit money in Earn accounts at Gemini that would then be loaned to the Genesis Entities and repaid with interest by them, was
a highly liquid investment and that Genesis was a creditworthy borrower based on the Bitcoin Custodian’s ongoing risk monitoring.
On February 9, 2024, NYAG amended its lawsuit to add additional allegations against defendants other than Gemini. No new allegations
were made against Gemini as part of the February 9 amendments.

On April 19, 2024, the United States Bankruptcy Court,
Southern District of New York in the Genesis bankruptcy proceedings, approved a settlement that allowed for certain payments,
on an in-kind “coin-for-coin” basis, to be made. Gemini made certain payments, on an in-kind “coin-for-coin”
basis to Gemini Earn investors on May 29, 2024, however these investors were not made completely whole and were still owed approximately
$50 million in cryptocurrency. On June 14, 2024, Gemini and NYAG entered into a Stipulation and Consent to Judgement which resolves
claims against Gemini set out in the NYAG Lawsuit as described above (the “NYAG Settlement”). As part of the NYAG