Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 35

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 35
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 assets will be permanently and irretrievably lost

with no means of recovery. We have encountered and expect to continue to encounter similar incidents with our

customers. Such incidents could result in customer disputes, damage to our brand and reputation, legal claims

against us, and financial liabilities, any of which could adversely affect our business.

A temporary or permanent blockchain “fork” to any supported crypto asset could adversely affect our business.

Blockchain protocols, including Bitcoin and Ethereum, are open source. Any user can download the

software, modify it, and then propose that Bitcoin, Ethereum or other blockchain protocols users and miners adopt

the modification. When a modification is introduced and a substantial majority of users and miners consent to the

modification, the change is implemented and the Bitcoin, Ethereum or other blockchain protocol networks, as

applicable, remain uninterrupted. However, if less than a substantial majority of users and miners consent to the

proposed modification, and the modification is not compatible with the software prior to its modification, the

consequence is called a “fork” (i. e., “split”) of the impacted blockchain protocol network and respective blockchain,

with one prong running the pre-modified software and the other running the modified software. The effect of a fork

is the existence of two parallel versions of the Bitcoin, Ethereum or other blockchain protocol network, as

applicable, running simultaneously, but with each split network’s crypto asset lacking interchangeability.

Both Bitcoin and Ethereum protocols have been subject to “forks” that resulted in the creation of new

networks, including Bitcoin Cash ABC, Bitcoin Cash SV, Bitcoin Diamond, Bitcoin Gold, Ethereum Classic, and

others. Some of these forks have caused fragmentation among platforms as to the correct naming convention for

forked crypto assets. Due to the lack of a central registry or rulemaking body, no single entity has the ability to

dictate the nomenclature of forked crypto assets, causing disagreements and a lack of uniformity among platforms

on the nomenclature of forked crypto assets, and which results in further confusion to users as to the nature of assets

they hold on platforms. In addition, several of these forks were contentious and, as a result, participants in certain

communities may harbor ill will towards other communities. As a result, certain community members may take

actions that adversely impact the use, adoption, and price of Bitcoin, Ethereum, or any of their forked alternatives.

Hard forks can also lead to new security concerns. For instance,