Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 64

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 64
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 harm, interruptions in service, breaches of data security, and loss of critical data, all of

which could have an adverse effect on our reputation, financial condition and operating results.

We do not maintain insurance sufficient to compensate us for the potentially significant losses that could

result from disruptions to our services, including as a result of cyberattacks. Additionally, all the aforementioned

risks may be further increased if we or our service providers do not or cannot implement our disaster recovery plan

or they prove to be inadequate. To the extent natural disasters or other catastrophic events concurrently impact data

centers we rely on in connection with private key restoration, customers will experience significant delays in

withdrawing funds, or in the extreme we may suffer loss of customer assets.

49

Item 4. Information on the Company

A. History and Development of the Company

Prior to April 2018 Acquisition by Monex

The Coincheck-branded business was initially launched in 2012 by ResuPress K. K., which in 2017 changed

its corporate name to Coincheck, Inc. In January 2018, Coincheck’s NEM hot wallet was hacked and it lost

526.3 million NEM, or ¥46.6 billion, of customer funds. Although Coincheck compensated customers who were

adversely affected by the cybersecurity incident, it became subject to lawsuits relating to the calculation of the

compensation provided (all of these lawsuits have been resolved). In addition, the JFSA required Coincheck to

suspend its operations and Coincheck became available for sale.

Acquisition by Monex and Steps Taken to Improve Governance and Risk Management

In April 2018, Coincheck was acquired by Monex for ¥3.6 billion. After the acquisition, Monex worked

closely with the JFSA to implement heightened security measures and better corporate governance. As part of these

initiatives, Monex engaged a financial cybersecurity consulting firm to conduct a holistic review of Coincheck’s

processes and system architecture to further improve the security of Coincheck’s cryptocurrency exchange. Under

Monex’s control, four new directors and three corporate auditors were appointed, as well as seven executive

officers. These appointments helped to strengthen the supervisory function of Coincheck’s board of directors and to

improve the independence of audits through the expertise of outside members. Improvements were also made

regarding the management of segregated customer assets through ongoing monitoring and monthly compliance

reports and discussions at compliance committee meetings attended