Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 6

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 6
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 come from a variety of sources, including criminal hackers, “hacktivists,” state-sponsored intrusions,

industrial espionage, and insiders. Actors attempting these invasions that are supported by significant financial and

technological resources make them even more sophisticated, dangerous and difficult to detect, and our costs and the

resources we devote to protecting against these advanced threats and their consequences may continue to increase

over time.

With respect to cybersecurity attacks supported by foreign countries, on January 14, 2025 government

agencies of the United States, Japan and the Republic of Korea issued a joint statement highlighting a recent pattern

of malicious cyber activity by affiliates of the Democratic People’s Republic of Korea (“ DPRK”) targeting the

blockchain technology industry. The joint statement attributes over $300 million in losses in 2024 to DPRK-

affiliated cybercrime campaigns targeting cryptocurrency exchanges, digital asset custodians and individual users

through well-disguised social engineering attacks. We believe there is also heightened risks in Japan of state-

supported cybersecurity attacks from China. Such organized cybercrime operations pose a heightened risk to our

operations and digital infrastructure, and our reputation as a secure trading platform may be jeopardized in the event

of such an attempted or a successful cyberattack. Additionally, the continued success of DPRK-affiliated

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cyberattacks on our competitors’ platforms and systems may negatively affect public perception of industry security

and harm our ability to attract new users and customers.

Crypto assets we support are not insured or guaranteed by any government or government agency, and we

do not have insurance for the loss of our customers’ crypto assets. Our ability to keep safe crypto assets deposited by

our customers requires a high level of internal controls. As our business continues to grow and we expand our

product and service offerings, we must continue to strengthen our associated internal controls. Our success and the

success of our offerings require significant public confidence in our ability to properly manage customers’ assets and

balances and handle large and growing transaction volumes and amounts of customer funds. Outages and disruptions

of our cryptocurrency platforms, including any caused by cyberattacks, or any failure by us to maintain the

necessary controls or to manage customer crypto assets and funds appropriately and in compliance with applicable

regulatory requirements, could result in reputational harm, significant financial losses, lead customers to discontinue

or reduce their use of our products, and result in significant penalties and fines and additional restrictions, any of

which could adversely impact our business, operating results