Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 67

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 67
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 occurrences could adversely affect the price of the relevant
digital asset, the attractiveness of the respective blockchain network and an investment in the Shares. If the Trust, the Sponsor or the
Trustee were to transact with a sanctioned entity, the Trust, the Sponsor or the Trustee would be at risk of potential criminal or civil
lawsuits or liability.

The Trust takes measures with
the objective of reducing illicit financing risks in connection with the Trust’s activities. However, illicit financing risks are
present in the digital asset markets, including markets for XRP. There can be no assurance that the measures employed by the Trust
will prove successful in reducing illicit financing risks, and the Trust is subject to the complex illicit financing risks and vulnerabilities
present in the digital asset markets. If such risks eventuate, the Trust, the Sponsor or the Trustee or their affiliates could face civil
or criminal liability, fines, penalties, or other punishments, be subject to investigation, have their assets frozen, lose access to banking
services or services provided by other service providers, or suffer disruptions to their operations, any of which could negatively affect
the Trust’s ability to operate or cause losses in value of the Shares.

The Sponsor and the Trust have
adopted and implemented policies and procedures that are designed to ensure that they do not violate applicable AML and sanctions laws
and regulations and to comply with any applicable KYC laws and regulations. The Sponsor and the Trust will only interact with known third
party service providers with respect to whom it has engaged in a due diligence process to ensure a thorough KYC process, such as the Authorized
Participants and the XRP Custodian. Authorized Participants, as broker-dealers, and the XRP Custodian, as a limited purpose trust company
subject to New York Banking Law, are subject to the U.S. Bank Secrecy Act (as amended) (“BSA”) and U.S. economic
sanctions laws. In addition, the Trust will only accept creations and redemption requests from regulated Authorized Participants who themselves
are subject to applicable sanctions and anti-money laundering laws and have compliance programs that are designed to ensure compliance
with those laws. In addition, XRP Counterparties will be contractually obligated that all XRP they deliver to the Trust will be from lawful
sources. The Trust will not hold any XRP except those that have been delivered by an XRP Counterparty in connection with creation requests.

The XRP Custodian has adopted
and implemented an anti-money laundering and sanctions compliance program,