Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 155

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 155
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 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 returned to Gemini Earn users through the Genesis bankruptcy
proceedings that are also creditors in the 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