Company: CNCKW
Filing Date: 2025-08-29
Form Type: POS AM
Source: 0001213900-25-082038
Chunk: 65

Company: Coincheck Group N.V.
Filing Date: 2025-08-29
Form: POS AM
Chunk 65
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 If such cover counterparty should go bankrupt or retain such crypto assets for some other unanticipated reason, we would still be responsible for returning such crypto assets to our customers. We self -impose, as a risk management policy, an overall risk limit amount and specific limits per cover counterparty on a daily basis. We also seek to stay alert for information that could lead to credit, legal or reputational concerns about a cryptocurrency exchange broker we deal with. If concerns arise, we take measures to avoid or reduce the risk, such as reducing the amount on deposit with the affected cover counterparty and transferring the assets to alternative cover counterparties. If credit, legal or reputational concerns regarding all of the cryptocurrency exchange brokers we transact with for a particular crypto asset were to arise, we would likely then attempt to use our own Exchange platform or other OTC counterparties capable of netting settlement to execute cover transactions. If these alternatives are not feasible for a particular crypto asset, however, we may need to temporarily suspend the trading and handling of the affected crypto asset, which could adversely affect our results of operations and our business reputation. On March 24, 2023, Binance, one of our cover counterparties, suffered an outage and suspended the trading of all crypto assets for a number of hours. As of the same date, our crypto assets deposited with Binance had increased to ¥194 million due to an increase in crypto asset prices. Although we were able to successfully use alternative counterparties without disruption to our services in this instance, we may not be successful in doing that in the future if a similar situation with a cover counterparty arises. We are still obligated to complete transactions which have already been placed by customers and accepted by our system, even if we are unable to execute cover transactions. We transact with both Japanese and international counterparties, and our largest single credit exposure as of March 31, 2025 relates to crypto assets we have deposited in order to transact with bitFlyer. We also transact with OKX and Binance as cover counterparties, and transacted with Bittrex until December 2023 (Bittrex announced in March 2023 it would be shutting down its operations and did so in December 2023). The following table shows the amounts deposited with OKX, bitFlyer, Binance, Bittrex, and all of our cover counterparties in total, as well as our cash and cash equivalents, as of March 31, 2023, June 30,