Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 92

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 92
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be difficult to trace, which may make XRP a particularly attractive target for theft. Cyber security failures or breaches of one or more
of the Trust’s service providers (including but not limited to, the Benchmark Provider, the Transfer Agent, the Administrator, or
the XRP Custodian) have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, violations
of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or
additional compliance costs.

The Trust and its service providers’
use of internet, technology and information systems (including mobile devices and cloud-based service offerings) may expose the Trust
to potential risks linked to cyber-security breaches of those technological or information systems. Security breaches, computer malware,
ransomware and computer hacking attacks have been a prevalent concern in relation to digital assets. The Sponsor believes that the Trust’s
XRP held in the Trust’s account with the XRP Custodian will be an appealing target to hackers or malware distributors seeking to
destroy, damage or steal the Trust’s XRP or private keys and will only become more appealing as the Trust’s assets grow. To the extent that the Trust, the Sponsor
or the XRP Custodian is unable to identify and mitigate or stop new security threats or otherwise adapt to technological changes in the
digital asset industry, the Trust’s XRP may be subject to theft, loss, destruction or other attack.

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The Sponsor has evaluated the
security procedures in place for safeguarding the Trust’s XRP. Nevertheless, the security procedures cannot guarantee the prevention
of any loss due to a security breach, software defect or act of God that may be borne by the Trust. Access to the Trust’s XRP could
be restricted by natural events (such as an earthquake or flood) or human actions (such as a terrorist attack).

The security procedures and
operational infrastructure may be breached due to the actions of outside parties, error or malfeasance of an employee of the Sponsor,
the XRP Custodian, or otherwise, and, as a result, an unauthorized party may obtain access to the Trust’s account with the XRP Custodian,
the private keys (and therefore XRP) or other data of the Trust. Additionally, outside parties may attempt to fraudulently induce employees
of the Sponsor, the XRP Custodian, or the Trust’s other service providers to disclose sensitive information in order to gain access
to the Trust