Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 190

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part II, Item 1
Chunk 190
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 and manipulative activity, business failure or security breaches. In many of these instances, the customers
of such digital asset trading platforms were not compensated or made whole for the partial or complete losses of their account
balances in such digital asset trading platforms. While, generally speaking, smaller digital asset trading platforms are less likely
to have the infrastructure and capitalization that make larger digital asset trading platforms more stable, larger digital asset
trading platforms are more likely to be appealing targets for hackers and malware and may be more likely to be targets of regulatory
enforcement action. For example, the collapse of Mt. Gox, which filed for bankruptcy protection in Japan in late February 2014,
demonstrated that even the largest digital asset trading platforms could be subject to abrupt failure with consequences for both
users of digital asset platforms and the digital asset industry as a whole. In particular, in the two weeks that followed the February
7, 2014 halt of bitcoin withdrawals from Mt. Gox, the value of one bitcoin fell on other trading platforms from around $795 on
February 6, 2014 to $578 on February 20, 2014. Additionally, in January 2015, Bitstamp announced that approximately 19,000 bitcoin
had been stolen from its operational or “hot” wallets. Further, in August 2016, it was reported that almost 120,000
bitcoins worth around $78 million were stolen from Bitfinex. 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 trading platform, for facilitating crimes such as drug sales and ransomware attacks. In addition, in December 2017,
Yapian, the operator of Seoul-based cryptocurrency trading platform 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 platform accounts, with any potential further distributions to be made following
Yapian’s pending bankruptcy proceedings. In addition, in January 2018, the Japanese digital asset trading platform, Coincheck,
was hacked, resulting in losses of approximately $535 million, and in February 2018, the Italian digital asset trading platform,
Bitgrail, was