Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 27

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 27
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 permanently, when a broad decline in the crypto asset

markets occurs. Any significant loss of customers or a significant reduction in their use of our Marketplace platform

could have a material impact on our trading volumes and total revenue, and adversely affect our business, financial

condition and results of operations.

We may suffer losses due to staking, delegating, and other related services we provide to our customers.

Certain supported crypto assets enable holders to earn rewards by participating in decentralized

governance, bookkeeping and transaction confirmation activities on their underlying blockchain networks, such as

through staking activities, including staking through validation, delegating, and baking. We currently provide and

expect to continue to provide such services for Ethereum (ETH) to our customers in order to enable them to earn

rewards based on the amount that we hold on their behalf. For instance, as a service to customers, we operate staking

nodes on certain blockchain networks utilizing customers’ crypto assets and pass through the rewards received to

those customers, less a service fee. In other cases, we may delegate our customers’ assets to third-party service

providers that are unaffiliated with us, and some networks may require customer assets to be transferred into smart

contracts on the underlying blockchain networks that are not under our, or a specific third party’s, control. In

addition, certain blockchain networks dictate requirements for participation in the relevant decentralized governance

activity, and may impose penalties, or “slashing,” if the relevant activities are not performed correctly, such as if the

staker, delegator, or validator acts maliciously on the network, “double signs” transactions, or if extended

downtimes occur. If we or any of our service providers are slashed by the underlying blockchain network, our

customers’ assets may be confiscated, withdrawn, or burnt by the network, resulting in losses for which we may be

responsible. Further, certain types of staking require the payment of transaction fees on the underlying blockchain

network and such fees can become significant as the amount and complexity of the transaction grows, depending on

the degree of network congestion and the price of the network token. If we experience a high volume of such staking

requests from our customers on an ongoing basis, we could incur significant costs. Any penalties or slashing events

could damage our brand and reputation, cause us to suffer financial losses, discourage existing and potential

customers from utilizing our products and services, and adversely impact our business.

We may be exposed to transaction losses