Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 74

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 74
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. By using the private key, a person is able to spend XRP, effectively sending it away from the account and recording that transaction on the blockchain. If a private key is compromised, XRP associated with that specific public key may be stolen. Unlike traditional banking transactions, once a transaction has been added to the blockchain, it cannot be reversed. Several exchanges specializing in sales of XRP, for example, have already had their operations impacted by cyber-attacks.

Thefts and cyber-attacks can have a negative impact on the reputation, market price, value, or liquidity of XRP. Through investment in the Trust, investors would be indirectly exposed to the risk and potential impact of a cyber-attack. A loss associated with a cyber-attack, including a total loss, is possible. While the Sponsor and the XRP Custodians have taken reasonable measures to prevent theft or hacking of the Trust’s XRP holdings, such an event cannot be fully excluded from the Trust’s overall market exposure, and the losses associated with such an event would be borne by investors.

Digital
asset networks, including the XRP Ledger, are subject to control by entities that capture a significant amount of the network’s
active validator nodes or a significant number of developers important for the operation and maintenance of such digital asset network.
The XRP Ledger relies on a network of validator nodes that agree on the order and validity of transactions. These nodes form the backbone
of the consensus process. Each validator node maintains a Unique Node List, which is a list of other validators it trusts. For a malicious
actor to take over, they would need to control a significant portion of the validators on the majority of these UNLs. To successfully
alter the ledger, the malicious actor would likely need to control more than 80% of the validator nodes or the voting power on the most
widely used UNLs.

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A malicious actor may also obtain control over the XRP Network through influence over core developers or by engaging in supply-chain attacks. This malinfluence can include gaining direct control over a core developer or an influential programmer and/or by gaining access to accounts and tools used by such developers and programmers. For instance, in April 2025 an attacker gained improper access to the account of a widely trusted contributor to the XRP Ledger’s JavaScript Library – a database used by developers to build applications and websites that interact with the XRP Ledger. The attacker uploaded malicious versions of JavaScript code designed to steal private key information from