Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 33

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 33
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 of Japan are unlicensed,

unregulated, operate without supervision by any governmental authorities, and do not provide the public with

significant information regarding their ownership structure, management team, corporate practices, cybersecurity,

and regulatory compliance. In addition, crypto assets may be more vulnerable than other types of assets to market or

price manipulation and other fraudulent practices due to the lack of regulations globally. A lack of transparency and

incidents of fraud or malfeasance that result in losses to investors may cause our existing or potential customers and

the general public to lose confidence in crypto asset platforms, including regulated platforms like ours. These

incidents may also lead to increased regulatory scrutiny in Japan and other jurisdictions.

Numerous crypto asset platforms and firms have, over the years, been sued, investigated, shut down or

suffered bankruptcy due to fraud, manipulative practices, business failure, and security breaches. In many of these

instances, customers of these platforms were not compensated or made whole for their losses. Larger platforms are

more appealing targets for hackers and malware and may also be more likely to be targets of regulatory enforcement

actions. Examples over the years have included Mt. Gox in 2014 (bankruptcy in Japan after an estimated 850,000

Bitcoin were stolen from its wallets), Binance in 2019 (hacked, resulting in losses of approximately $40 million),

Bitfinex in 2021 (alleged misuse of over $800 million of customer assets), FTX in 2022 (bankruptcy filing following

allegations of fraud and mismanagement and criminal conduct), DMM Bitcoin in 2024 (Japanese company, hacked,

resulting in loss of 4,502.9 Bitcoin, approximately ¥48.2 billion), and Bybit in 2025 (attack related to ETH cold

wallets, and possible loss of over 400,000 ETH worth approximately $1.5 billion).

Recent highly publicized regulatory actions, particularly in 2023, against large and well known crypto asset

companies over the years have been a source of intense negative publicity, including actions against or involving

Coinbase (alleged violation of securities laws), Binance and its co-founder and CEO (alleged violations of the

Commodity Exchange Act and CFTC regulations, misleading investors, and operating unregistered securities

businesses), FTX and its founder (criminal and civil fraud), Ripple Labs (alleged securities laws violations;

settlement in 2024 of action filed