Company: HODL
Filing Date: 2025-03-26
Form Type: 10-K
Source: 0000930413-25-000995
Chunk: 91

Company: VanEck Bitcoin ETF
Filing Date: 2025-03-26
Form: 10-K
Item: Item 1
Chunk 91
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 2024. Gemini will be required to make such full and
complete restitution on an in-kind “coin-for-coin” basis. Additionally, Gemini will be banned from operating any cryptocurrency
lending program in New York, unless a future state or federal legislation specifically permits cryptocurrency lending programs
in or from the State of New York at which point NYAG’s consent shall be required.

On February 28, 2024, Gemini and the New York State
Department of Financial Services (“NYDFS”) announced that they had entered into an administrative consent settlement
agreement (the “NYDFS Settlement”) that included findings, primarily with respect to the Gemini Earn program, that
Gemini had conducted some of its business in an unsafe and unsound manner, made false or misleading advertising statements, and
failed to maintain an effective customer due diligence program, and committed other violations of New York Banking Law and NYDFS
regulations. Pursuant to this settlement, Gemini has agreed to ensure that at least $1.1 billion is returned to Gemini Earn users
through the Genesis bankruptcy proceedings that are also creditors in the Genesis bankruptcy. In addition, Gemini has agreed to
contribute at least $40 million for the benefit of impacted Gemini Earn users and pay a $37 million fine to NYDFS. In determining
the appropriate amount of the penalty, the NYDFS acknowledged and commended Gemini’s cooperation and recognized Gemini’s
engagement with the NYDFS on the matters identified in the NYDFS Settlement and its ongoing efforts to remediate the shortcomings
identified in the NYDFS Settlement and during the NYDFS’ most recent examination of Gemini.

Additionally, pursuant to the NYDFS Settlement, Gemini
agreed to provide an action plan to NYDFS including implementing the recommendations of an outside consultant in connection with
a governance and management assessment, continuing to strengthen its controls, policies and procedures to ensure robust compliance
programs in connection with its virtual currency business activity, and continuing its cooperation with the NYDFS to remediate
the violations identified in the NYDFS Settlement and previous examinations. The NYDFS Settlement also reserves the NYDFS’s
right to bring an action against Gemini if Gemini fails to fulfill its obligations under NYDFS Settlement. The NYDFS Settlement
does not resolve any other regulatory proceedings or litigation involving Gemini. As a regulated entity with financial services
licenses in multiple jurisdictions, it is possible that other regulators may decide to initiate their own action with respect
to Gemini based on the findings contained in the NYDFS Settlement.

Gemini, as the Bitcoin