Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 47

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 47
---
ported “stablecoins,” including Tether; and (7) fraud and manipulation at digital asset trading platforms.

Over the past several years,
a number of digital asset spot markets have been closed or faced issues due to fraud. In many of these instances, the customers of such
spot markets were not compensated or made whole for the partial or complete losses of their account balances in such digital asset exchanges.

In 2019, there were
reports claiming that 80.95% of bitcoin trading volume on digital asset exchanges was false or noneconomic in nature, with specific
focus on unregulated exchanges located outside of the United States. Such reports alleged that certain overseas exchanges have
displayed suspicious trading activity suggestive of a variety of manipulative or fraudulent practices. Other academics and market
observers have put forth evidence to support claims that manipulative trading activity has occurred on certain digital asset
exchanges. For example, in a 2017 paper titled “Price Manipulation in the Bitcoin Ecosystem” sponsored by the
Interdisciplinary Cyber Research Center at Tel Aviv University, a group of researchers used publicly available trading data, as well
as leaked transaction data from a 2014 Mt. Gox security breach, to identify and analyze the impact of “suspicious trading
activity” on Mt. Gox between February and November 2013, which, according to the authors, caused the price of bitcoin to
increase from around $150 to more than $1,000 over a two-month period. In August 2017, it was reported that a trader or group
of traders nicknamed “Spoofy” was placing large orders on Bitfinex without actually executing them, presumably in order
to influence other investors into buying or selling by creating a false appearance that greater demand existed in the market. In
December 2017, an anonymous blogger (publishing under the pseudonym Bitfinex’d) cited publicly available trading data to support his or her claim that
a trading bot nicknamed “Picasso” was pursuing a paint-the-tape-style manipulation strategy by buying and selling bitcoin
and bitcoin cash between affiliated accounts in order to create the appearance of substantial trading activity and thereby influence the
price of such assets.

<div align='center'>20</div>

In November 2022, FTX,
one of the largest digital asset exchanges by volume at the time, halted customer withdrawals amid rumors of the company’s liquidity
issues and likely insolvency, which were subsequently corroborated by its CEO. Shortly thereafter, FTX