Company: HODL
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0000930413-25-003438
Chunk: 157

Company: VanEck Bitcoin ETF
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 4
Chunk 157
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 seek injunctive relief, disgorgement, and civil
penalties. On June 6, 2023, the SEC filed a complaint against the Relevant Coinbase Entities in federal district court in the Southern
District of New York, alleging, inter alia: (i) that Coinbase Inc. has violated the Exchange Act by failing to register
with the SEC as a national securities exchange, broker-dealer, and clearing agency, in connection with activities involving certain
identified digital assets that the SEC’s complaint alleges are securities, (ii) that Coinbase Inc. has violated the Securities
Act by failing to register with the SEC the offer and sale of its staking program, and (iii) that Coinbase Global is jointly
and severally liable as a control person under the Exchange Act for Coinbase Inc.’s violations of the Exchange
Act to the same extent as Coinbase Inc. The SEC’s complaint seeks a permanent injunction against the Relevant Coinbase
Entities to prevent them from violations of the Exchange Act or Securities Act, disgorgement, civil monetary penalties,
and such other relief as the court deems appropriate or necessary. On February 27, 2025, the SEC and the Relevant Coinbase Entities
filed a joint stipulation to dismiss the case with prejudice, and the case has been dismissed. Notwithstanding the dismissal of
the SEC enforcement action, Coinbase Inc. is currently, and it and the Additional Bitcoin Custodian from time to time may be, subject
in the future, to a variety of other litigation. Although the Trust does not presently anticipate such an outcome, there can be
no assurance that in the future Coinbase Inc. or Coinbase Custody, as Bitcoin Custodian, will not be required, as a result of a
judicial determination, or will not choose, to restrict or curtail the services they offer, or their financial condition and ability
to provide services to the Trust, will not be negatively affected.

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Alternatively, the Sponsor could decide to replace the Additional Bitcoin
Custodian as a custodian of the Trust’s bitcoin, pursuant to the Additional Custodial Services Agreement (the “Additional
Bitcoin Custody Agreement”). Similarly, the Additional Bitcoin Custodian could terminate services under the Additional Bitcoin
Custody Agreement for any reason and without Cause upon providing the applicable notice to the Trust for any reason, or immediately
for Cause (“Cause” is defined in the Additional Bitcoin Custody Agreement as (i) the Trust breaches any