Company: CNCKW
Filing Date: 2025-08-29
Form Type: POS AM
Source: 0001213900-25-082038
Chunk: 28

Company: Coincheck Group N.V.
Filing Date: 2025-08-29
Form: POS AM
Chunk 28
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 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 -basedcryptocurrency 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 -relatedexpenses, 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 come from a variety of sources, including criminal hackers, “hacktivists,” state -sponsoredintrusions, 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. 14 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 -affiliatedcybercrime campaigns targeting cryptocurrency exchanges, digital asset custodians and individual users through well -disguisedsocial engineering attacks. We believe there is also heightened risks in Japan of state -supportedcybersecurity attacks from China. Such organized cybercrime operations pose a heightened risk to our