Company: CNCKW
Filing Date: 2025-07-30
Form Type: 20-F
Source: 0001628280-25-036727
Chunk: 5

Company: Coincheck Group N.V.
Filing Date: 2025-07-30
Form: 20-F
Item: Item 3
Chunk 5
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, and which resulted in the suspension of withdrawals by Coincheck’s

customers. See “ Information on the Company” - “ History and Development of the Company.”

Over the past fiscal year, we have had two cybersecurity incidents, one a phishing incident affecting

Coincheck’s X (formerly Twitter) account and the other a virus in a Next Finance personal computer that affected

addresses associated with three private keys. Neither of these incidents had material negative consequences to us. As

a result of these two recent incidents, we enhanced employee training and background checks for both new and

existing employees, but there is still no assurance that similar attacks will not successfully occur in the future.

There are also recent examples of serious hacking in our industry in and outside of Japan. For example, on

May 31, 2024, Japanese crypto exchange operator DMM Bitcoin announced that it had lost 4,502.9 Bitcoin

(approximately ¥48.2 billion) of customer assets held in cold wallets as a result of a hacking incident in which such

assets were transmitted outside of the company through an “unauthorized leak.” As a result, on September 26, 2024,

Japan’s Kanto Local Finance Bureau issued a business improvement order to DMM Bitcoin which required DMM

Bitcoin to, among other things, investigate the root causes of the incident, adequately compensate affected customers

and improve the risk management systems of the company. Outside of Japan, on February 21, 2025, Dubai-based

cryptocurrency exchange Bybit announced it had detected unauthorized activity related to ETH cold wallets, and this

sophisticated attack led to the transfer and possible loss of over 400,000 ETH worth approximately $1.5 billion. If

new rules regarding wallets for customer assets held in custody are introduced in Japan in response to such

incidents, this could result in an increase in our security-related expenses, including an increase in insurance costs if

we decide to take out an appropriate insurance policy in the future.

There are various kinds and methods of cybersecurity attack that can gain access to our, and our customers

and vendors’, computers, facilities, systems and information. These include unauthorized parties having attempted,

and likely continuing to attempt in the future, things like hacking, social engineering, phishing, and attempting to

fraudulently induce individuals into disclosing usernames, passwords, payment card information, or other sensitive

information, which then may lead to access to our information technology systems and customers’ crypto assets.

Threats can