Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 46

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 46
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finex,
a large digital asset exchange. The value of bitcoin and other digital assets immediately decreased over 10% following reports of the
theft at Bitfinex. In July 2017, FinCEN assessed a $110 million fine against BTC-E, a now defunct digital asset exchange, for
facilitating crimes such as drug sales and ransomware attacks. In addition, in December 2017, Yapian, the operator of Seoul-based
digital asset exchange Youbit, suspended digital asset trading and filed for bankruptcy following a hack that resulted in a loss of 17%
of Yapian’s assets. Following the hack, Youbit users were allowed to withdraw approximately 75% of the digital assets in their
exchange accounts, with any potential further distributions to be made following Yapian’s pending bankruptcy proceedings. In addition,
in January 2018, the Japanese digital asset exchange, Coincheck, was hacked, resulting in losses of approximately $535 million,
and in February 2018, the Italian digital asset exchange, Bitgrail, was hacked, resulting in approximately $170 million in
losses. In May 2019, one of the world’s largest digital asset exchanges, Binance, was hacked, resulting in losses of approximately
$40 million. On February 21, 2025, Bybit, a digital asset exchange, experienced a significant security breach resulting in the loss
of nearly $1.5 billion worth of ether.

Spot markets may be exposed to fraud and market manipulation.

The blockchain infrastructure
could be used by certain market participants to exploit arbitrage opportunities through schemes such as front-running, spoofing, pump-and-dump
and fraud across different systems, platforms or geographic locations. As a result of reduced oversight, these schemes may be more prevalent
in digital asset markets than in the general market for financial products.

The SEC has identified possible
sources of fraud and manipulation in the digital asset market generally, including, among others (1) “wash trading”;
(2) persons with a dominant position in digital assets manipulating digital asset pricing; (3) hacking of a digital asset network
and trading platforms; (4) malicious control of digital asset networks; (5) trading based on material, non-public information
(for example, plans of market participants to significantly increase or decrease their holdings in digital assets, new sources of demand
for digital assets, etc.) or based on the dissemination of false and misleading information; (6) manipulative activity involving
pur