Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 76

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 2
Chunk 76
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 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 Custodian, could be required, as a result
of judicial or regulatory determinations, or could choose, to restrict or curtail the services it offers (whether in or from
New York State or generally), its licenses could be impacted, or its financial condition and ability to provide services to
the Trust could be affected as a result of the NYDFS Settlement, NYAG Settlement, or other litigation. If the Bitcoin
Custodian were to be required or choose, as a result of litigation or regulatory action, to restrict, curtail, or terminate
the services it offers, it could negatively affect the Trust’s ability to operate, hold bitcoin, or process creations
or redemptions of Baskets, which could force the Trust to engage an alternate bitcoin custodian or to liquidate and could
adversely affect the value of the Shares.

Similarly, the Additional Bitcoin Custodian performs essential functions
in terms of safekeeping the Trust’s bitcoin in the Additional Bitcoin Vault Balance. If the Additional Bitcoin Custodian
fails to perform the functions they perform for the Trust, the Trust may be unable to operate