Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 233

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1A
Chunk 233
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 an investment program called Gemini Earn, pursuant to which customers of Gemini could deposit money in Earn accounts
at Gemini that would then be loaned to the Genesis Entities and repaid with interest by them, was a highly liquid investment and
that Genesis was a creditworthy borrower based on the Bitcoin Custodian’s ongoing risk monitoring. On February 9, 2024, NYAG
amended its lawsuit to add additional allegations against defendants other than Gemini. No new allegations were made against Gemini
as part of the February 9 amendments.

On April 19, 2024, the United States Bankruptcy Court, Southern District
of New York in the Genesis bankruptcy proceedings, approved a settlement that allowed for certain payments, on an in-kind “coin-for-coin”
basis, to be made. Gemini made certain payments, on an in-kind “coin-for-coin” basis to Gemini Earn investors on May
29, 2024, however these investors were not made completely whole and were still owed approximately $50 million in cryptocurrency.
On June 14, 2024, Gemini and NYAG entered into a Stipulation and Consent to Judgement which resolves claims against Gemini set
out in the NYAG Lawsuit as described above (the “NYAG Settlement”). As part of the NYAG Settlement, Gemini will return
approximately $50 million worth of digital assets to investors of the Gemini Earn program who were entitled to receive, and did
receive, distributions from Gemini on May 29, 2024. Gemini will be required to make such full and complete restitution on an in-kind
“coin-for-coin” basis. Additionally, Gemini will be

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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