Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 34

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 34
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 in 2000).

Negative perceptions about crypto asset offering resulting from these widely published incidents of closure or

temporary shutdown of crypto asset platforms due to fraud, business failure, hackers or malware, or government

mandated regulation, and associated losses suffered by customers, may reduce investor confidence and result in

greater volatility of the prices of crypto assets, including significant depreciation in value, which could have an

adverse impact on our business.

31

Depositing and withdrawing crypto assets in and from our cryptocurrency exchanges involve risks, which could

result in loss of customer assets, customer disputes and other liabilities, which could adversely impact our

business.

In order to own, transfer and use a crypto asset on its underlying blockchain network, a person must have a

private and public key pair associated with a network address, commonly referred to as a “wallet.” Each wallet is

associated with a unique “public key” and “private key” pair, each of which is a string of alphanumerical characters.

To deposit crypto assets with us a customer must “sign” a transaction that consists of the private key of the wallet

from where the customer is transferring crypto assets, the public key of a wallet that we control which we provide to

the customer, and the broadcast of the deposit on the underlying blockchain network. Similarly, to withdraw crypto

assets deposited with us, the customer must provide us with the public key of the wallet where the crypto assets are

to be transferred, and we are required to “sign” a transaction authorizing the transfer. In addition, some crypto

networks require that additional information be provided in connection with any transfer of crypto assets to or from

our cryptocurrency exchanges. A number of errors can occur in the process of depositing or withdrawing crypto

assets, such as typos, mistakes, or the failure to include the information required by the blockchain network. For

instance, a user may incorrectly enter our wallet’s public key or the desired recipient’s public key when depositing

and withdrawing from our cryptocurrency exchanges, respectively. Alternatively, a user may transfer crypto assets

to a wallet address that he does not own, control or hold the private keys to. In addition, each wallet address is only

compatible with the underlying blockchain network on which it is created. For instance, a Bitcoin wallet address can

only be used to send and receive Bitcoin. If any Ethereum or other crypto asset is sent to a Bitcoin wallet address, or

if any of the foregoing errors occur, all of the customer’s crypto