Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 154

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 154
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 requirements; or (iv) a
change of control of the Trust, or an event, change or development that causes or is likely to cause a material adverse
effect on the Trust, or in the ability of the Trust to fulfill its responsibilities under the Custody Agreement, occurs.
Transferring maintenance responsibilities of the Trust’s account at the Bitcoin Custodian to another custodian may be
complex and could subject the Trust’s bitcoin to the risk of loss during the transfer, which could have a negative
impact on the performance of the Shares or result in loss of the Trust’s assets. Also, if the Bitcoin Custodian becomes
insolvent, suffers business failure, ceases business operations, defaults on or fails to perform its obligations under the
Custody Agreement or Clearing Agreement with the Trust, or abruptly discontinues the services it provides to the Trust for
any reason, the Trust’s operations would be adversely affected.

On October 19, 2023, Gemini, the Bitcoin Custodian for the Trust, was
named in a complaint filed by the New York Attorney General (“NYAG Lawsuit”) against Gemini and other entities, including
Genesis and its affiliates (collectively, the “Genesis Entities”) in a New York state court, alleging, inter alia,
that Gemini had violated New York’s Martin Act by soliciting money from the public, including persons in New York, with false
assurances that 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