# EDGAR Filing Document

**Accession Number:** 0001913847
**File Stem:** 0001628280-25-036727
**Filing Date:** 2025-7
**Character Count:** 900685
**Document Hash:** 472d9fbba0abfb033add73042636e611
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-25-036727.hdr.sgml**: 20250730

**ACCESSION NUMBER**: 0001628280-25-036727

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 153

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250730

**DATE AS OF CHANGE**: 20250730

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Coincheck Group N.V.
- **CENTRAL INDEX KEY:** 0001913847
- **STANDARD INDUSTRIAL CLASSIFICATION:** FINANCE SERVICES [6199]
- **ORGANIZATION NAME:** 09 Crypto Assets
- **EIN:** 000000000
- **STATE OF INCORPORATION:** P7
- **FISCAL YEAR END:** 0331

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-42438
- **FILM NUMBER:** 251167386

**BUSINESS ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NIEUWEZIJDS VOORBURGWAL 162
- **CITY:** 1012 SJ AMSTERDAM
- **PROVINCE COUNTRY:** P7
- **BUSINESS PHONE:** 31-20-522-2555

**MAIL ADDRESS:**
- **ADDRESS IS A NON US LOCATION:** YES
- **STREET 1:** NIEUWEZIJDS VOORBURGWAL 162
- **CITY:** 1012 SJ AMSTERDAM
- **PROVINCE COUNTRY:** P7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Coincheck Group B.V.
- **DATE OF NAME CHANGE:** 20220228

?xml version='1.0' encoding='ASCII'? cnck-20250331

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM 20-F**

---

| |
|:---|
| **(Mark One)** |
| **☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR 12(g) OF THE SECURITIES**<br>**EXCHANGE ACT OF 1934**<br>|
| **OR** |
| ☒ **ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF**<br>**1934**<br>|
| **For the fiscal year ended March 31, 2025** |
| **OR** |
| **☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT** <br>**OF 1934** <br>|
| **For the transition period from to** <br>**OR**<br>|
| **☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE**<br>**ACT OF 1934**<br>**Date of event requiring this shell company report:**<br>|

---

**<u>001-42438</u>**

**Commission file number**

**COINCHECK GROUP N.V.**

**(Exact Name of Registrant as Specified in Its Charter)**

---

| | |
|:---|:---|
| **Not applicable** | **The Netherlands** |
| (Translation of Registrant's name into English) | (Jurisdiction of Incorporation or Organization) |

---

**Coincheck Group N.V.**

**Nieuwezijds Voorburgwal162**

**1012 SJAmsterdam**

**The Netherlands**

**(Address of Principal Executive Offices)**

**Jason Sandberg, Chief Financial Officer**

**Coincheck Group N.V.**

**Nieuwezijds Voorburgwal162**

**1012 SJAmsterdam**

**The Netherlands**

**coincheckIR@icrinc.com**

**+3120-522-2555**

**(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Ordinary Shares, nominal value €0.01 per share | CNCK | The Nasdaq Stock Market LLC |
| Warrants, each exercisable to purchase one ordinary <br>share at an exercise price of $11.50 per share<br>| CNCKW | The Nasdaq Stock Market LLC |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act: None**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the

period covered by the annual report:

On March 31, 2025, the issuer had 130,814,526 ordinary shares outstanding.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐

No☒

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to

Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ☐ No☒

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the

Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required

to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be

submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such

shorter period that the registrant was required to submit such files). Yes☒No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an

emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," and "emerging growth

company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Emerging growth company | ☐ |

---

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark

if the registrant has elected not to use the extended transition period for complying with any new or revised financial

accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ❑

The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards

Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the

effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C.

7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of

the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-

based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to §

240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this

filing:

---

| | | |
|:---|:---|:---|
| U.S. GAAP ☐ | International Financial Reporting Standards as issued by the International Accounting <br>Standards Board ☒<br>| Other ☐ |

---

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the

registrant has elected to follow. Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule

12b-2 of the Exchange Act). Yes ☐ No ☒

**TABLE OF CONTENTS**

Page

---

| | |
|:---|:---|
| [CERTAIN DEFINED TERMS](#ia1c1684269724754b16019cfb8840f03)........................................................................................................................ | [1](#ia1c1684269724754b16019cfb8840f03) |
| [NOTE ON PRESENTATION](#i3c5e9e3e95ee4c7e9a4832b35e389b90)......................................................................................................................... | [6](#i3c5e9e3e95ee4c7e9a4832b35e389b90) |
| [TRADEMARKS, TRADE NAMES AND SERVICE MARKS](#i184e8429f06e431e8ecf2b7504b0a02a).................................................................... | [7](#i184e8429f06e431e8ecf2b7504b0a02a) |
| [EXCHANGE RATE PRESENTATION](#i5d102237c0d849a8822c67f0c613faf4)......................................................................................................... | [7](#i5d102237c0d849a8822c67f0c613faf4) |
| [MARKET AND INDUSTRY DATA](#ife0aa8638d8c4b6c97968ce2f1558efc).............................................................................................................. | [7](#ife0aa8638d8c4b6c97968ce2f1558efc) |
| [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS](#i7e530a3aa1514b0c940f43eeebfac196).......................... | [7](#i7e530a3aa1514b0c940f43eeebfac196) |
| [Part I.](#ie8b4c5527ffb494fad6eef65672cbd29)........................................................................................................................................................... | [10](#ie8b4c5527ffb494fad6eef65672cbd29) |
| [Item 1.](#i2f846de33d764a12a1c4107f8736e017)[Identity of Directors, Senior Management and Advisers](#i2f846de33d764a12a1c4107f8736e017).............................................................. | [10](#i2f846de33d764a12a1c4107f8736e017) |
| [Item 2.](#i57829a1857b3414fb5d37ad6ce956c0d)[Offer Statistics and Expected Timetable](#i57829a1857b3414fb5d37ad6ce956c0d)....................................................................................... | [10](#i57829a1857b3414fb5d37ad6ce956c0d) |
| [Item 3.](#i11cdec6c08a248f2b468373a67055525)[Key Information](#i11cdec6c08a248f2b468373a67055525)............................................................................................................................ | [10](#i11cdec6c08a248f2b468373a67055525) |
| [Item 4.](#i50a60f246b6440a0a558091e95cd9292)[Information on the Company](#i50a60f246b6440a0a558091e95cd9292)........................................................................................................ | [49](#i50a60f246b6440a0a558091e95cd9292) |
| [Item 4.A](#i3d80843bace746c1a404489e5583d32b)[Unresolved Staff Comments](#i3d80843bace746c1a404489e5583d32b)......................................................................................................... | [82](#i3d80843bace746c1a404489e5583d32b) |
| [Item 5.](#id82ae03ef794436689c3cec9dde166ab)[Operating and Financial Review and Prospects](#id82ae03ef794436689c3cec9dde166ab)............................................................................ | [82](#id82ae03ef794436689c3cec9dde166ab) |
| [Item 6.](#i8cb8c1e7ae0845918772eb35592632d8)[Directors, Senior Management and Employees](#i8cb8c1e7ae0845918772eb35592632d8)............................................................................ | [107](#i8cb8c1e7ae0845918772eb35592632d8) |
| [Item 7.](#i68c5f6f9d55f4766b9fcd792d1445805)[Major Shareholders and Related Party Transactions](#i68c5f6f9d55f4766b9fcd792d1445805).................................................................... | [119](#i68c5f6f9d55f4766b9fcd792d1445805) |
| [Item 8.](#i7521f1f5841041b1ad8a184e8ff2925d)[Financial Information](#i7521f1f5841041b1ad8a184e8ff2925d).................................................................................................................... | [122](#i7521f1f5841041b1ad8a184e8ff2925d) |
| [Item 9.](#i2e555c00f8a64afea22096c777f36e0e)[The Offer and Listing](#i2e555c00f8a64afea22096c777f36e0e).................................................................................................................... | [123](#i2e555c00f8a64afea22096c777f36e0e) |
| [Item 10.](#i39faa35665f04eb8acb6a9d4fbed63f4)[Additional Information](#i39faa35665f04eb8acb6a9d4fbed63f4).................................................................................................................. | [124](#i39faa35665f04eb8acb6a9d4fbed63f4) |
| [Item 11.](#i9d82230d59174eb38460b7ca4a1aa4e5)[Quantitative and Qualitative Disclosure About Markets Risks](#i9d82230d59174eb38460b7ca4a1aa4e5).................................................... | [146](#i9d82230d59174eb38460b7ca4a1aa4e5) |
| [Item 12.](#id398a1640b1b487da7abb84958de4f10)[Description of Securities other than Equity Securities](#id398a1640b1b487da7abb84958de4f10).................................................................. | [148](#id398a1640b1b487da7abb84958de4f10) |
| [Part II.](#ie7add95392dd4f548474b391afc8b011)........................................................................................................................................................... | [149](#ie7add95392dd4f548474b391afc8b011) |
| [Item 13.](#i6d507dca775849779eb28e457c9df7d9)[Defaults, Dividend Arrearages and Delinquencies](#i6d507dca775849779eb28e457c9df7d9)....................................................................... | [149](#i6d507dca775849779eb28e457c9df7d9) |
| [Item 14.](#i6b0237ddf5a14f5f8e86f1f84711d9fb)[Material Modifications to the Rights of Security Holders and Use of Proceeds](#i6b0237ddf5a14f5f8e86f1f84711d9fb).......................... | [149](#i6b0237ddf5a14f5f8e86f1f84711d9fb) |
| [Item 15.](#i96ea1c0549ad4525bcc434ceb1e6a0de)[Controls and Procedures](#i96ea1c0549ad4525bcc434ceb1e6a0de)............................................................................................................... | [149](#i96ea1c0549ad4525bcc434ceb1e6a0de) |
| [Item 16.](#ie4fe99fec4f74dd9b632c2a2d28f1853) ...................................................................................................................................................... | [150](#ie4fe99fec4f74dd9b632c2a2d28f1853) |
| [Item 16.A](#i390ee336dda44c93a29a93e4e63de1f2)[Audit Committee Financial Expert](#i390ee336dda44c93a29a93e4e63de1f2)................................................................................. | [150](#i390ee336dda44c93a29a93e4e63de1f2) |
| [Item 16.B](#if14f9a5177124218bf9e84efc1f15115)[Code of Ethics](#if14f9a5177124218bf9e84efc1f15115)................................................................................................................. | [150](#if14f9a5177124218bf9e84efc1f15115) |
| [Item 16.C](#i3eb1f302dc95410393692975d4ef7a10)[Principal Accountant Fees and Services](#i3eb1f302dc95410393692975d4ef7a10)......................................................................... | [150](#i3eb1f302dc95410393692975d4ef7a10) |
| [Item 16.D](#ie269c10769144c9daf947d9889ff221b)[Exemptions from the Listing Standards for Audit Committees](#ie269c10769144c9daf947d9889ff221b)...................................... | [151](#ie269c10769144c9daf947d9889ff221b) |
| [Item 16.E](#id97ee345df704e0dbc43b69542a5a2d5)[Purchases of Equity Securities by the Issuer and Affiliated Purchasers](#id97ee345df704e0dbc43b69542a5a2d5)......................... | [151](#id97ee345df704e0dbc43b69542a5a2d5) |
| [Item 16.F](#id97b799ceb3f459ca5c7b32f22a15321)[Change In Registrant's Certifying Accountant](#id97b799ceb3f459ca5c7b32f22a15321)............................................................... | [151](#id97b799ceb3f459ca5c7b32f22a15321) |
| [Item 16.G](#ia019b50082844014aaf8465e872c7d45)[Corporate Governance](#ia019b50082844014aaf8465e872c7d45).................................................................................................... | [152](#ia019b50082844014aaf8465e872c7d45) |
| [Item 16.H](#iaa5aced6fbb6438583ac2951b79de799)[Mine Safety Disclosure](#iaa5aced6fbb6438583ac2951b79de799)................................................................................................... | [153](#iaa5aced6fbb6438583ac2951b79de799) |
| [Item 16.I](#i99baff2605344a1db9363bd41aac0736)[Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i99baff2605344a1db9363bd41aac0736)............................ | [153](#i99baff2605344a1db9363bd41aac0736) |
| [Item 16.J](#i6eee361b4e2049b88d022f75257d395a)[Insider Trading Policies](#i6eee361b4e2049b88d022f75257d395a).................................................................................................. | [153](#i6eee361b4e2049b88d022f75257d395a) |
| [Item 16.K](#i12366793cde74a3f8e279982ba2b4c9d)[Cybersecurity](#i12366793cde74a3f8e279982ba2b4c9d).................................................................................................................. | [153](#i12366793cde74a3f8e279982ba2b4c9d) |
| [Part III.](#i39ceed2c04aa4f96959f264b5d24c8c6)........................................................................................................................................................... | [155](#i39ceed2c04aa4f96959f264b5d24c8c6) |
| [Item 17.](#i33162df000aa4f5fb24840b85d7647ab)[Financial Statements](#i33162df000aa4f5fb24840b85d7647ab)..................................................................................................................... | [155](#i33162df000aa4f5fb24840b85d7647ab) |
| [Item 18.](#idaa0a70ffdd04456ab4de468c475ceba)[Financial Statements](#idaa0a70ffdd04456ab4de468c475ceba)..................................................................................................................... | [155](#idaa0a70ffdd04456ab4de468c475ceba) |
| [Item 19.](#ic4acc18772bd47e39a9fa494f6d63a46)[Exhibits](#ic4acc18772bd47e39a9fa494f6d63a46).......................................................................................................................................... | [156](#ic4acc18772bd47e39a9fa494f6d63a46) |
| [SIGNATURES](#if6fca37960a44a2ba27b11f0861d882e)................................................................................................................................................. | [159](#if6fca37960a44a2ba27b11f0861d882e) |

---

---

| | |
|:---|:---|
| [CONSOLIDATED FINANCIAL STATEMENTS](cnck-20250331_d2.htm)......................................................................................... | F-1 |

---

**CERTAIN DEFINED TERMS**

*Throughout this Annual Report on Form 20-F (this "report"), unless otherwise designated or the context* 

*requires otherwise, the terms "we," "us," "our," "the Company" and "our company" refer to Coincheck Group* 

*N.V. and its subsidiaries, which prior to the Business Combination was the business of Coincheck, Inc.* 

*("Coincheck") and "Coincheck Parent" refers to Coincheck Group N.V., and not to any of its subsidiaries.*

*The following terms are defined within, or otherwise referred to, in this report.*

---

| | |
|:---|:---|
| **Term** | **Description** |
| altcoin | A term sometimes used to refer to a cryptocurrency other than <br>Bitcoin.<br>|
| Bitcoin ("BTC") | The first system of global, decentralized, scarce, digital money as <br>initially introduced in a white paper titled "Bitcoin: A Peer-to-Peer <br>Electronic Cash System" by Satoshi Nakamoto.<br>|
| blockchain | A cryptographically secure digital ledger that maintains a record of <br>all transactions that occur on a network and follows a consensus <br>protocol for confirming new blocks to be added.<br>|
| Board or Board of Directors | The board of directors of Coincheck Group N.V. |
| Business Combination | The Business Combination consummated on December 10, 2024 <br>pursuant to the Business Combination Agreement, including related <br>transactions therein described.<br>|
| Business Combination Agreement | The Business Combination Agreement, dated as of March 22, 2022, <br>as amended, by and among Thunder Bridge, Coincheck Parent, M1 <br>GK, Coincheck Merger Sub, Inc., and Coincheck, and the <br>agreements contemplated therein for related transactions to be <br>signed or completed at closing.<br>|
| Coincheck | Coincheck, Inc., a Japanese joint stock company (*kabushiki kaisha*) <br>and the principal operating subsidiary of Coincheck Parent, and is a <br>licensed cryptocurrency exchange services provider in Japan.<br>|
| Coincheck Parent  | Coincheck Group N.V., a Dutch public limited liability company <br>(*naamloze vennootschap*).<br>|
| Coincheck NFT Marketplace | Coincheck's service available to customers that enables non-<br>fungible tokens (NFTs) to be purchased.<br>|
| cold wallet | Sometimes also described as cold storage, the storage of private <br>keys in any fashion that is disconnected from the internet in order <br>to protect data from unauthorized access. Common examples <br>include offline computers, USB drives or paper records.<br>|
| cover counterparties | Counterparties with which cover transactions are executed. |
| cover transactions | Transactions executed by Coincheck on the Exchange platform <br>with a customer, or with a party on an external exchange or market <br>maker that is connected via API to Coincheck's systems, in order to <br>offset Coincheck's own positions or reduce its exposure arising <br>from transactions in crypto assets with customers using <br>Coincheck's Marketplace platform.<br>|
| crypto | A broad term for any cryptography-based market, system, <br>application, or decentralized network.<br>|

---

---

| | |
|:---|:---|
| crypto asset or a "token" | A digital asset built using blockchain technology, including <br>cryptocurrencies and NFTs. Under PSA, digital assets that <br>constitute a "security token" (i.e., ERTRs or ERTRISs under FIEA) <br>are excluded from the definition of crypto assets. Accordingly, <br>crypto assets consist only of digital assets that have been <br>determined not to constitute ERTRs or ERTRISs.<br>|
| cryptocurrency | Bitcoin and altcoins. This category of crypto asset is designed to <br>work as a medium of exchange, store of value, or to power <br>applications and excludes security tokens.<br>|
| customer account or customer's <br>account <br>| The single account, as governed by one customer agreement, <br>opened by a customer that enables the customer to use the <br>Marketplace platform, Exchange platform, Coincheck NFT <br>Marketplace, participate in Coincheck's IEO platform offerings, and <br>otherwise use Coincheck's crypto services offered to its <br>accountholders (i.e., there is one account per verified user for all <br>accountholder services, and not separate accounts or customer <br>agreements for each platform or service).<br>|
| customer assets | Cryptocurrencies held for customers + fiat currency deposited by <br>customers, on a J-GAAP basis. This definition, as used in the <br>description of our business, does not include NFTs.<br>|
| customers (or "users") | Parties who hold accounts and utilize the services provided on <br>crypto asset platforms. This definition, as used in the description of <br>our business, generally does not include cover counterparties, and <br>thus such definition differs from the definition of "customer" under <br>IFRS 15. Notwithstanding the foregoing, for purposes of the <br>Company's audited financial statements included elsewhere in this <br>report, "customers" refers to customers that meet the definition <br>under IFRS 15, including cover counterparties.<br>|
| DeFi | Short for "Decentralized Finance," referring to a peer-to-peer <br>network built on blockchain technology that can be used to <br>facilitate traditional financial services like borrowing, lending, <br>trading derivatives, and insurance.<br>|
| ERTRs and ERTRISs | Electronically recorded transferable rights (ERTRs) and <br>electronically recorded transferable rights to be indicated on <br>securities (ERTRIS) under FIEA.<br>|
| Ethereum | A decentralized global computing platform that supports smart <br>contract transactions and peer-to-peer applications, as well as the <br>native crypto assets, such as Ether (ETH), on the Ethereum <br>network.<br>|
| Exchange Act | The U.S. Securities Exchange Act of 1934, as amended. |
| Exchange platform | Coincheck's exchange platform, targeted to more sophisticated <br>crypto investors and traders, which facilitates crypto asset purchase <br>and sale transactions between customers generally on a no-fee <br>basis, and on which Coincheck from time to time purchases or sells <br>crypto assets to help support the covering of transactions on its <br>Marketplace platform.<br>|
| FEFTA | The Foreign Exchange and Foreign Trade Act of Japan (Act No. <br>228 of 1948). Under FEFTA, Japan's Ministry of Finance and its <br>ministries with jurisdiction over a target entity's business review <br>foreign direct investments and impose certain restrictions on such <br>investments made by foreign investors.<br>|

---

---

| | |
|:---|:---|
| FIEA | Japan's Financial Instruments and Exchange Act |
| fork | A "soft" fork aims to be a backward-compatible upgrade to a <br>blockchain, allowing nodes running older versions to still validate <br>new transactions. A "hard" fork is a non-backward-compatible <br>change that requires all nodes to upgrade to the new version, often <br>resulting in a permanent split in the blockchain which results in two <br>different blockchains, the original, and the new version, resulting in <br>the creation of a new token.<br>|
| hot wallet | A wallet that is connected to the Internet, enabling it to broadcast <br>transactions.<br>|
| Initial Exchange Offering ("IEO")/<br>Initial Token Offering<br>| A fundraising event where a crypto start-up raises money through a <br>cryptocurrency exchange. An IEO is a type of Initial Token <br>Offering where a company or project electronically issues utility <br>tokens to procure funds, with a cryptocurrency exchange acting as <br>the main party for screening the project and selling the issuer <br>tokens. Interested supporters can buy tokens with fiat currency or <br>cryptocurrency. The token may be exchangeable in the future for a <br>new cryptocurrency to be launched by the project, or a discount or <br>early rights to a product or service proposed to be offered by the <br>project.<br>|
| Japan Virtual and Crypto assets <br>Exchange Association (the "JVCEA")<br>| The JVCEA is a self-regulatory organization for the Japanese <br>cryptocurrency industry under the Payment Services Act, which is <br>formally recognized by the Financial Services Agency of Japan (the <br>"JFSA"). The JVCEA was established in 2018 after a hacking <br>incident of NEM digital tokens occurred with an operational focus <br>on the inspection of the security of domestic exchanges and the <br>enforcement of stricter regulations. The members of the JVCEA <br>consist of the 32 licensed class 1 Japanese virtual currency <br>exchange service providers as of April 15, 2025.<br>|
| M1 GK | M1 Co G.K., a Japanese limited liability company (*godo kaisha*) <br>that was a direct, wholly owned subsidiary of Coincheck Parent and <br>the sole shareholder of Coincheck, which was merged into <br>Coincheck on June 20, 2025, resulting in Coincheck Parent <br>becoming the sole shareholder of Coincheck.<br>|
| Marketplace platform | Coincheck's main platform offering that supports, as of March 31, <br>2025, 30 different cryptocurrencies, and is used primarily by retail <br>customers to buy and sell the supported cryptocurrencies. <br>|

| mining | The process by which new blocks are created, and thus new <br>transactions are added to the blockchain.<br>|
| Monex | Monex Group, Inc., a Japanese joint stock company (*kabushiki* <br>*kaisha*) listed on the Tokyo Stock Exchange.<br>|
| Nasdaq | Nasdaq Global Market. |

---

---

| | |
|:---|:---|
| NEM ("XEM") | NEM (abbreviated as "XEM" on exchange platforms) is a type of <br>open-source cryptocurrency developed for the "New Economic <br>Movement" network. NEM is a crypto asset with a strong <br>community in Japan in particular, and the goal of NEM is to <br>establish a new economic framework based on the principles of <br>decentralization, economic freedom and equality rather than the <br>existing frameworks managed by countries and governments.<br>|
| network | Also sometimes referred to as a crypto network, cryptocurrency <br>network or blockchain network, a system of interconnected <br>computers that records and verifies cryptocurrency transactions, <br>including the collection of all miners that use computing power to <br>maintain the ledger and add new blocks to the blockchain.<br>|
| Next Finance | Next Finance Tech Co., Ltd, a Japanese private company engaged <br>in a staking platform services business, that Coincheck Parent <br>acquired in March 2025.<br>|
| non-fungible token, or NFT | A unique and non-interchangeable unit of data stored on a <br>blockchain which allows for a verified and public proof of <br>ownership, first launched on the Ethereum blockchain.<br>|
| on-chain | A type of crypto transaction that is directly recorded as data on a <br>blockchain.A type of transaction that is not directly recorded on a <br>blockchain is referred to as "off-chain."<br>|
| Ordinary Shares | Ordinary Shares of Coincheck Parent, traded on Nasdaq under the <br>symbol "CNCK."<br>|
| protocol | A type of algorithm or software that governs how a blockchain <br>operates.<br>|
| Private Warrants | Warrants, issued by Coincheck Parent, and held by Thunder Bridge <br>Sponsor.<br>|
| PSA | Japan's Payment Services Act, a law governing registration and <br>other requirements relating to the issuance and exchange of prepaid <br>payments, as amended to cover crypto assets.<br>|
| public key or private key | Each public address has a corresponding public key and private key <br>that are cryptographically generated. A private key allows the <br>recipient to access any funds belonging to the address, similar to a <br>bank account password. A public key helps validate transactions <br>that are broadcasted to and from the address. Addresses are <br>shortened versions of public keys, which are derived from private <br>keys.<br>|
| Public Warrants | Warrants, issued by Coincheck Parent, and traded on Nasdaq under <br>the symbol "CNCKW."<br>|
| SEC | The U.S. Securities and Exchange Commission. |
| Securities Act | The U.S. Securities Act of 1933, as amended. |
| smart contract | Software that digitally facilitates or enforces a rules-based <br>agreement or terms between transacting parties.<br>|
| Thunder Bridge | Thunder Bridge Capital Partners IV, Inc., a Delaware corporation, <br>the special purpose acquisition company (SPAC) for the de-SPAC <br>transaction embodied by the Business Combination Agreement.<br>|
| Thunder Bridge Sponsor | TBCP IV, LLC, a Delaware limited liability company, Thunder <br>Bridge's sponsor and the recipient of Ordinary Shares as "sponsor <br>shares" pursuant to the Business Combination Agreement.<br>|
| US$ or $ | Refers to U.S. dollars. |

---

---

| | |
|:---|:---|
| wallet | A place to store public and private keys for crypto assets. |
| Warrants | The Public Warrants and Private Warrants, collectively. |

---

**NOTE ON PRESENTATION**

**Financial Statements**

***Coincheck Group N.V.***

Following the Business Combination, we qualified as a Foreign Private Issuer and prepare our financial

statements in accordance with IFRS Accounting Standards ("IFRS"), as issued by the International Accounting

Standards Board ("IASB"). The consolidated financial statements of the Company as of March 31, 2025 and 2024,

and for the three-year period ended March 31, 2025, have been prepared in accordance with the IFRS Accounting

Standards and in its presentation and reporting currency of Japanese yen ("¥").

**Accounting Treatment of the Business Combination**

The Business Combination has been accounted for as a reverse recapitalization. Under this method of

accounting, Thunder Bridge has been treated as the "acquired" company for financial reporting purposes.

Accordingly, the Business Combination has been treated as the equivalent of Coincheck issuing shares at the

consummation of the Business Combination (the "Closing") for the net assets of Thunder Bridge as of December 10,

2024, accompanied by a recapitalization. The net assets of Thunder Bridge have been stated at fair value, with no

goodwill or other intangible assets recorded. This determination was based primarily on Coincheck's stockholders

immediately before Closing owning a majority of the voting power of the Company immediately following Closing.

The Business Combination is not within the scope of IFRS 3 since there was no change in control and

Thunder Bridge did not meet the definition of a business in accordance with IFRS 3; as such, the Business

Combination has been accounted for within the scope of IFRS 2. Any excess of fair value of Coincheck shares

issued over the fair value of Thunder Bridge's identifiable net assets acquired represents compensation for the

service of a stock exchange listing for its shares and is expensed as incurred.

**Non-IFRS Financial Measures**

In addition to our results determined in accordance with IFRS, we present EBITDA and Adjusted EBITDA,

non-IFRS measures, because we believe they are useful in evaluating our operating performance. EBITDA

represents net profit (loss) for the period before the impact of taxes, interest, depreciation, and amortization of

intangible assets, and Adjusted EBITDA represents EBITDA, further adjusted for transaction expenses that are

directly attributable to the reverse recapitalization, as well as Nasdaq listing expenses.

We use EBITDA and Adjusted EBITDA to evaluate our ongoing operations and for internal planning and

forecasting purposes. We believe that EBITDA and Adjusted EBITDA may be helpful to investors because it

provides consistency and comparability with past financial performance. However, EBITDA and Adjusted EBITDA

are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be

considered in isolation or as a substitute for our financial information presented in accordance with IFRS.

**Rounding** 

We have made rounding adjustments to some of the figures included in this report. Accordingly, numerical

figures shown as totals in some tables may not be an arithmetic aggregation of the figures that preceded them.

**Fiscal Year**

Our fiscal year begins on April 1 and ends on March 31 of the following year.

**TRADEMARKS, TRADE NAMES AND SERVICE MARKS** 

We have proprietary rights to trademarks used in this report that are important to our business, many of

which are registered under applicable intellectual property laws. Solely for convenience, trademarks and trade names

referred to in this report may appear without the "®" or "TM" symbols, but the lack of such symbols is not intended

to indicate, in any way, that we will not assert, to the fullest extent possible under applicable law, our rights or the

rights of the applicable licensor of these trademarks and trade names. The use or display herein of other companies'

trademarks, trade names or service marks is not intended to imply a relationship with, or endorsement or

sponsorship of us by, any other companies, or a sponsorship or endorsement of any such other companies by us.

Each trademark, trade name or service mark of any other company appearing in this report is the property of its

respective holder.

**EXCHANGE RATE PRESENTATION**

This report contains translations of certain U.S. dollar amounts into Japanese yen, and Japanese yen

amounts into U.S. dollars, as well as certain Eurodollar amounts into Japanese yen, solely for the convenience of the

reader. Such translations were made, as we deemed appropriate, and as applicable, at March 31, 2025, 2024 or 2023

(for statements of financial position), or based on the average rate for the year ended March 31, 2025, 2024 or 2023

(for statements of profit or loss). Historical and current exchange rate information may be found at https://

www.federalreserve.gov/releases/h10/. Such currency amounts are not necessarily indicative of the amounts of

currency that could actually have been purchased upon exchange of Japanese yen, U.S. dollars or Eurodollars at the

dates or over the periods indicated or any other date, and, when expressed in Japanese yen, U.S. dollars or

Eurodollars in the future, such amounts may be different from those set forth in this report due to intervening

exchange rate fluctuations.

**MARKET AND INDUSTRY DATA**

Market data and certain industry forecast data used in this report were obtained from internal reports, where

appropriate, as well as third-party sources, including independent industry publications, as well as other publicly

available information. Data regarding the industries in which we compete and our market position and market share

within these industries are inherently imprecise and are subject to significant business, economic and competitive

uncertainties beyond our control, but we believe they generally indicate size, position and market share. In addition,

assumptions and estimates of our and our industries' future performance are necessarily subject to a high degree of

uncertainty and risk due to a variety of factors. These and other factors, both external and internal, could cause our

future plans, performance, achievements or results to differ materially from how we discuss those forward-looking

items in this report. As a result, you should be aware that market, ranking and other similar industry data included in

this report, and estimates and beliefs based on that data, may not be reliable. See "Cautionary Statement Regarding

Forward-Looking Statements."

**CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS**

This report contains forward-looking statements. These forward-looking statements relate to expectations

for future financial performance, business strategies or expectations for our business. In addition, any statements that

refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying

assumptions, are forward-looking statements. Forward-looking statements are typically identified by words such as

"plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project," "continue," "could,"

"may," "might," "possible," "potential," "predict," "should," "would" and other similar words and expressions, but

the absence of these words does not mean that a statement is not forward-looking.

These forward-looking statements are based on information available as of the date of this report and our

managements' current intentions, expectations, forecasts and assumptions, and involve a number of judgments,

known and unknown risks and uncertainties and other factors, many of which are outside of our control.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent

date. We do not undertake any obligation to update, add or to otherwise correct any forward-looking statements

contained herein to reflect events or circumstances after the date they were made, whether as a result of new

information, future events, inaccuracies that become apparent after the date hereof or otherwise, except as may be

required under applicable securities laws.

You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of

the date of this report. As a result of a number of known and unknown risks and uncertainties, actual results or

performance may be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include, but are not limited to, those factors described in this report under "Risk

Factors" and include the following:

• the price of crypto assets and volume of transactions on Coincheck's platforms;

• the development, utility and usage of crypto assets, and people's interest in investing in them and

trading them, particularly in Japan;

• changes in economic conditions and consumer sentiment in Japan;

• cyberattacks and security breaches on, or affecting, Coincheck's platform;

• the level of demand for any particular crypto asset or crypto assets generally;

• changes to any laws or regulations in the United States, Japan or the Netherlands that are adverse to the

Company, Coincheck, or either's failure to comply with any laws or regulations;

• administrative sanctions, including fines, or legal claims if we are found to have offered services in

violations of the laws of jurisdictions other than Japan or to have violated international sanctions

regimes;

• Coincheck's ability to compete and increase market share in a highly competitive industry;

• Coincheck's ability to introduce new products and services, timely or at all;

• any interruptions in services provided by third-party service providers;

• the status of any particular crypto asset as to whether it is deemed a "security" in any relevant

jurisdiction;

• legal, regulatory, and other risks in connection with Coincheck's operation of the Coincheck NFT

Marketplace that could adversely affect our business, operating results, and financial condition;

• our obligations to comply with the laws, rules, regulations, and policies of a variety of jurisdictions if

we expand our business outside of Japan;

• the inability to maintain the listing of our Ordinary Shares on Nasdaq;

• the ability to grow and manage growth profitably; and

• other risks and uncertainties indicated in this report, including those set forth under the section titled

"Risk Factors."

Should one or more of these risks or uncertainties materialize or should any of the assumptions made by

our management prove incorrect, actual results may vary in material respects from those projected in these forward-

looking statements. You should keep in mind that any event described in a forward-looking statement made in this

report or elsewhere might not occur.

The foregoing factors and "Risk Factors" section in this report should not be construed as exhaustive and

should be read together with the other cautionary statements included in this report. All forward-looking statements

included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this

section as well as any other cautionary statements contained in this report.

**Part I.**

**Item 1. Identity of Directors, Senior Management and Advisers**

Not applicable.

**Item 2. Offer Statistics and Expected Timetable**

Not applicable.

**Item 3. Key Information**

**A.[Reserved]**

**B.Capitalization and Indebtedness** 

Not applicable.

**C.Reasons for the Offer and Use of Proceeds** 

Not applicable.

**D.Risk Factors** 

*Investors should carefully consider the risks described below before making an investment decision.* 

*Additional risks not presently known to us or that we currently deem immaterial (but may turn out to be material)* 

*may also impair our business operations. Our business, financial condition or results of operations could be* 

*materially and adversely affected by any of these risks. The trading price and value of our Ordinary Shares could* 

*decline due to any of these risks, and you may lose all or part of your investment. This report also contains forward-*

*looking statements that involve risks and uncertainties. Our actual results could differ materially from those* 

*anticipated in these forward-looking statements as a result of certain factors, including the risks faced by us* 

*described below and elsewhere in this report. Wherever in this report we use the terms "adverse effect," "adversely* 

*affect(ed)," "adverse impact," "adversely impact(ed),"or similar terms, you should read that to mean that such* 

*adverse effect or impact may be material to our business, financial condition, results or operation and/or prospects.*

**Risks Relating to Our Business, the Crypto Industry, and Crypto Assets**

***Our total revenue is substantially dependent on the prices of crypto assets and volume of transactions conducted***

***on our Marketplace platform. If such prices or volumes decline, our business, operating results, and financial***

***condition would be adversely affected, as well as our share price.***

In the years ended March 31, 2023, 2024 and 2025, 98.9%, 99.6% and 99.6%, respectively, of our total

revenue consisted of transaction revenue we derive from transactions on our Marketplace platform. Any declines in

the volume of crypto asset transactions by retail investors in Japan, the prices of crypto assets we support, especially

the ones our customers trade most frequently, or market liquidity for crypto assets generally, may result in lower

revenue to us. Additionally, a decline in the number of our monthly users may negatively impact our volume of

transactions. Prolonged volatility, or lack of volatility, in these markets can also have a significant impact on our

share price. Ongoing volatility in the prices and volumes of crypto assets which result in volatile swings in our total

revenue quarter-to-quarter may also result in volatility of our share price, including depreciation in our share price,

and we cannot predict future crypto asset prices, trading volume or volatility and those factors will affect our share

price. Volatility in our share price could negatively impact public market perception of our business, and our ability

to raise equity financing and to acquire other businesses using our shares as consideration (in whole or in part).

The price of crypto assets, including Bitcoin and Ethereum, which constitute the majority of trading volume

for our business, and associated demand for trading those and other crypto assets, have historically been volatile,

and our revenue and operating results have often followed these price trends, meaning they tend to be more

favorable as prices rise and less favorable as prices decline. Sharp declines in the prices of the crypto assets we have

for our customers to trade, particularly Bitcoin and Ethereum, also result in a decline in our customer assets.

The price and trading volume of any crypto asset is subject to significant uncertainty and volatility,

depending on a number of factors, including:

• market conditions of, and overall sentiment towards, crypto assets;

• changes in liquidity, market-making volume and trading activities;

• trading activities on other crypto platforms worldwide, many of which may be unregulated, and may be

subject to manipulative activities;

• investment and trading activities of highly active retail and institutional users, speculators and miners;

• the speed and rate at which crypto assets are able to gain adoption as a medium of exchange, utility,

store of value, consumptive asset, or usage worldwide, if at all;

• decreased user and investor confidence in crypto assets and crypto platforms;

• negative publicity and events relating to crypto assets including due to bankruptcies, fraud or

allegations of fraud, failures of management and hacks;

• unpredictable social media coverage or "trending" of, or other rumors and market speculation

regarding, crypto assets;

• Retail customer preferences and perceived value by them of crypto assets and crypto asset markets;

• regulatory or legislative changes and updates affecting the use and regulation of crypto assets, both in

Japan and globally;

• the maintenance, troubleshooting, and development of the blockchain networks underlying crypto

assets, including by miners, validators, and developers worldwide;

• the ability of crypto networks to attract and retain miners or validators to secure and confirm

transactions accurately and efficiently;

• ongoing technological viability and security of crypto assets and their associated smart contracts,

applications and networks, including vulnerabilities against hacks and scalability;

• financial strength of market participants;

• interruptions in service in, or failures of, major crypto platforms;

• availability and cost of funding and capital;

• liquidity of major crypto platforms;

• availability of an active derivatives market for various crypto assets, and regulatory permissibility of

derivative crypto transactions and markets in various jurisdictions;

• availability of banking and payment services to support crypto-related companies and projects; and

• national and international economic and political conditions, such as rising global interest rates and

wars.

There is no assurance that any crypto asset that is supported on or by our platforms will maintain its value

or that there will be meaningful levels of trading activity of such asset. In particular, we are dependent on Japanese

retail customers who account for nearly all of the trading volume on our Marketplace platform, which is currently

the source of nearly all of our revenue. Accordingly, we are particularly vulnerable to any changes in sentiment

relating to crypto assets from retail investors in Japan, whether due to any of the above factors, or other factors. In

the event that any of the foregoing, or other, factors drive down the price of crypto assets or the demand for trading,

or trading volume of, crypto assets, our business, operating results and financial condition would be adversely

affected.

***Our operating results have and are expected to significantly fluctuate from period to period.***

Our operating results are heavily dependent on the level of trading of crypto assets on our Marketplace

platform. Due in large part to the highly volatile nature of the prices of crypto assets and trading volume, our

operating results have fluctuated and are expected to continue to fluctuate significantly between periods in

accordance with market sentiments and movements in such prices and volume. As a result, period-to-period

comparisons (both sequential and year over year) of our results of operations should not be relied on as indicators of

future performance. Our operating results will continue to fluctuate significantly as a result of a variety of factors,

many of which are unpredictable and in certain instances, are outside of our control, including:

• our revenue is dependent on crypto asset trading activity by our customers, including trading volume

and the prevailing trading prices for crypto assets, whose trading prices and volume are highly volatile;

• our ability to attract, maintain, and grow our customer base and engage our customers;

• our ability to diversify and grow, including in respect of our non-transaction revenue;

• pricing pressure on our products and services;

• investments we make in the development of products and services as well as our investment in sales

and marketing;

• addition and removal of crypto assets on our cryptocurrency exchanges or NFT marketplace;

• adverse legal proceedings or regulatory enforcement actions, judgments, settlements, or other legal

proceeding and enforcement-related costs;

• regulatory changes that impact our ability to offer certain products or services;

• the development and introduction of existing and new products and services by us or our competitors;

• system failure or outages, including with respect to our crypto platforms or other third-party crypto

networks;

• breaches of security or privacy;

• inaccessibility of our cryptocurrency exchanges or NFT marketplace due to our or third-party actions;

• our ability to attract and retain talent; and

• our ability to compete with our competitors, including ones that offer, or begin to offer, more types of

crypto assets, better transaction and settlement speed, security, or scalability, lower or more favorable

fee structures, or other characteristics attractive to customers.

***Cyberattacks and security breaches of our cryptocurrency marketplaces, exchanges, platforms or back-office***

***systems, or of other cryptocurrency marketplaces, exchanges of platforms, especially those impacting crypto***

***customers or other third parties, could adversely impact our brand and reputation and our business, operating***

***results, and financial condition.***

Our business involves the collection, storage, processing, and transmission of confidential information,

customer, employee, service provider, and other personal data, our and our customers' crypto and fiat assets, as well

as information and technology required to access those assets. We have built our reputation, in part, on the premise

that our cryptocurrency platforms offer customers a secure way to purchase, store, and transact in crypto assets. As a

result, any actual or perceived security breach of our systems or those of our third-party providers may:

• harm our reputation and brand;

• result in our systems or services being unavailable and interrupt our operations;

• result in improper disclosure of data and violations of applicable privacy and other data protection

laws;

• result in significant regulatory scrutiny, investigations, fines, penalties, and other legal, regulatory, and

financial exposure;

• cause us to incur significant remediation costs;

• lead to theft or irretrievable loss of our or our customers' fiat currencies or crypto assets;

• reduce customer confidence in, or decreased use of, our products and services;

• divert the attention of management from the operation of our business;

• result in significant compensation or contractual penalties owed to our customers or third parties as a

result of losses to them or claims by them; and

• adversely affect our business, financial condition and operating results.

Further, any actual or perceived breach or cybersecurity attack directed at other companies in the crypto

industry, or other kinds of financial institutions with which the crypto industry may be identified, whether or not we

are directly impacted, could lead to a general loss of customer confidence in crypto assets, crypto exchanges or in

the use of technology to conduct financial digital asset transactions, which could negatively impact us, including the

market perception of the effectiveness of our security measures and technology infrastructure.

Cybersecurity attacks upon systems across a variety of industries, including the crypto industry, are

increasing in their frequency, persistence, and sophistication and, in many cases, are being conducted or supported

by sophisticated, well-funded, and organized groups and individuals, including state actors. The techniques used to

obtain unauthorized, improper, or illegal access to systems and information (including customers' personal data and

crypto assets), disable or degrade services, or sabotage systems are constantly evolving, may be difficult to detect

quickly, and often are not recognized or detected until after they have been launched against a target. These attacks

may occur on our systems or those of our third-party service providers or partners. Certain types of cyberattacks

could harm us even if our systems' operations are left undisturbed. For example, attacks may be designed to deceive

employees and service providers into releasing control of our systems to a hacker, while others may aim to introduce

computer viruses or malware into our systems with a view toward stealing confidential or proprietary data.

Additionally, certain threats are designed to remain dormant or undetectable until launched against a target and we

may not be able to implement adequate preventative measures.

Although we have developed systems and processes, including employee training, designed to protect the

data we manage, prevent data loss and other security breaches, effectively respond to known and potential risks, and

expect to continue to expend significant resources to bolster these protections, there can be no assurance that these

security measures will provide absolute or adequate security or prevent breaches or attacks. We have experienced

from time to time, and may experience in the future, breaches of our security measures due to human error,

malfeasance, insider threats, system errors or vulnerabilities, or other irregularities. For example, in January 2018,

Coincheck, then under its prior management (that is, before Monex acquired control), was ordered by the JFSA to

improve its business operations due to a case in which approximately 526.3 million of the NEM crypto asset, or

¥46.6 billion, was illegally transferred, 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 come from a variety of sources, including criminal hackers, "hacktivists," state-sponsored intrusions,

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.

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-

affiliated cybercrime campaigns targeting cryptocurrency exchanges, digital asset custodians and individual users

through well-disguised social engineering attacks. We believe there is also heightened risks in Japan of state-

supported cybersecurity attacks from China. Such organized cybercrime operations pose a heightened risk to our

operations and digital infrastructure, and our reputation as a secure trading platform may be jeopardized in the event

of such an attempted or a successful cyberattack. Additionally, the continued success of DPRK-affiliated

cyberattacks on our competitors' platforms and systems may negatively affect public perception of industry security

and harm our ability to attract new users and customers.

Crypto assets we support are not insured or guaranteed by any government or government agency, and we

do not have insurance for the loss of our customers' crypto assets. Our ability to keep safe crypto assets deposited by

our customers requires a high level of internal controls. As our business continues to grow and we expand our

product and service offerings, we must continue to strengthen our associated internal controls. Our success and the

success of our offerings require significant public confidence in our ability to properly manage customers' assets and

balances and handle large and growing transaction volumes and amounts of customer funds. Outages and disruptions

of our cryptocurrency platforms, including any caused by cyberattacks, or any failure by us to maintain the

necessary controls or to manage customer crypto assets and funds appropriately and in compliance with applicable

regulatory requirements, could result in reputational harm, significant financial losses, lead customers to discontinue

or reduce their use of our products, and result in significant penalties and fines and additional restrictions, any of

which could adversely impact our business, operating results, and financial condition.

***We may make acquisitions and investments, both inside and outside of Japan, which could require significant***

***management attention, disrupt our business, result in dilution to our shareholders, and adversely affect our***

***financial results.***

As part of our business strategy, we are actively exploring, and intent to continue actively exploring for the

foreseeable future, potential opportunities to make acquisitions and strategic investments both inside and outside of

Japan to add complementary companies (including cryptocurrency exchanges or marketplace businesses in other

countries), or to add specialized knowledge, expertise, products, services, licenses, or technologies that could

complement or enhance our business. We routinely conduct discussions and evaluate opportunities for possible

acquisitions, strategic investments, entries into new businesses, joint ventures, and other transactions. Most recently,

in March 2025, we acquired Next Finance, a relatively small Japanese private company, to enhance our staking

award offering and position us to offer staking platform services to others in the industry. Companies and

technologies we decide to acquire or invest in may be private, small, highly speculative in nature, or immature or

unsophisticated in their management's experience with crypto regulatory regimes in their jurisdiction or generally.

While this is part of our business strategy, we may not be able to find any suitable acquisition or investment

candidates, and we may not be able to complete acquisitions or make investments on favorable terms, if at all. In

some cases, the costs of such acquisitions may be substantial, there is no assurance that we will receive a favorable

return on investment for our acquisitions, and we might be required to write off certain assets acquired.

In addition, if we fail to successfully integrate the management and governance of an acquired company, or

integrate the products or technologies being acquired otherwise being made available, our total revenue and

operating results could be adversely affected. Our ability to acquire and integrate companies, products, services,

licenses, or technologies in a successful manner is unproven. Any integration process may require significant time

and resources, and we may not be able to manage the process successfully, including successfully securing

regulatory approvals which may be required to close the transaction and/or to continue to operate the target firm's

business or products in a manner that is useful to us. We may not successfully evaluate or utilize the acquired

products, services, technology, or personnel, or accurately forecast the financial impact of an acquisition, including

accounting charges. Anticipated revenue or cost synergies, if any, projected by us in our analyses to support our

decisions to acquire or invest may not be realized as we have projected, or at all. We may have to pay cash, incur

debt, or issue equity securities to pay for any such acquisition, any of which could adversely affect our financial

results and result in share dilution. Any substantial indebtedness incurred to complete the acquisition or support the

acquired company's business thereafter would result in increased fixed obligations and may include covenants or

other restrictions that would impede our ability to manage our operations.

***If we expand to markets outside of Japan, which is our intention, our obligations to comply with the laws, rules,***

***regulations, and policies of a variety of jurisdictions will increase and we may be subject to investigations and***

***enforcement actions by non-Japanese regulators and governmental authorities.***

If we expand into markets outside of Japan, which is our intention if and as we explore opportunities we

deem attractive, we will become obligated to comply (or oversee new foreign operating subsidiaries' obligations to

comply) with the laws, rules, regulations, policies, and legal interpretations both of the jurisdictions in which we

operate and those into which we offer services on a cross-border basis. For instance, financial regulators outside of

Japan have significantly increased their scrutiny of crypto asset exchanges, such as by requiring crypto asset

exchanges operating in their local jurisdictions to be regulated and licensed under local laws. In response to concerns

that crypto assets could be used to circumvent certain sanctions regimes, governments and regulators may also

implement new measures and regulations that restrict the operations of crypto asset exchanges. Moreover, laws

regulating financial services, the internet, mobile technologies, crypto assets, and related technologies outside of

Japan are rapidly evolving, complex and often impose different, more specific, or even conflicting obligations on us,

as well as potentially broader liability.

Regulators worldwide frequently study each other's approaches to the regulation of crypto assets.

Consequently, developments in any particular jurisdiction may influence other jurisdictions. New developments in

new law or regulation in one jurisdiction are magnified by the potential that they may be replicated, affecting our

business in another place or involving another service. Conversely, if regulations diverge worldwide, we may face

difficulty adjusting our products, services, and other aspects of our business to serve customers in jurisdictions

outside of Japan. To the extent that we expand internationally, in addition to the other significant risks relevant to

internal expansion, or any expansion, through mergers, acquisitions, joint ventures, partnerships, strategic

relationships or similar relationships or transactions, we would become subject to a heightened risk of enforcement

action, litigation, regulatory, and legal scrutiny, which could lead to sanctions, cease and desist orders, or other

penalties and censures which could significantly and adversely affect our continued operations and financial

condition.

***We operate in a highly competitive industry and our business, operating results, and financial condition may be***

***adversely affected if we are unable to respond to our competitors effectively.***

The development of crypto assets and related cryptocurrency markets, exchanges and NFT marketplaces

has been rapidly evolving, and is characterized by competition, experimentation, changing customer needs and

frequent introductions of new products and services. Crypto asset trading markets are also subject to evolving

industry and regulatory requirements both in Japan and internationally. We expect competition to further intensify in

the future as existing and new competitors introduce new products and services or enhance existing ones. We

compete against a number of companies operating both in Japan and abroad, both those that focus on traditional

financial services and those that focus on crypto-related services. Our most direct competitors are other companies

licensed in Japan to provide crypto asset exchange services to individual retail investors. As investor acceptance of

crypto assets as an investment category has grown, we also see competition from traditional financial technology

and brokerage firms that are entering the crypto asset market in Japan, including through joint ventures, and offering

services targeted at our customers.

In addition to competition within Japan, another source of competition has been from companies located

outside of Japan, many of which are subject to significantly less stringent regulatory and compliance requirements,

or enforcement efforts, in their local jurisdictions. To the extent investors in Japan are able to access their services,

such companies may be more able to quickly adapt to trends, support a greater number of crypto assets, and develop

new crypto-based products and services. Their business models may in fact rely, in large part, on being unregulated

or less regulated in their applicable jurisdictions.

To date, due to limited enforcement by regulators in many places, we believe many of these competitors

have been able to operate from offshore while offering a number of products and services to retail customers,

including in Japan and other more highly regulated jurisdictions, without complying with the relevant licensing and

other limitations and requirements in Japan and other more highly regulated jurisdictions. Due to our regulated

status in Japan and our commitment to legal and regulatory compliance, we have not been able to offer popular

products and services that our unregulated or less regulated competitors operating outside of Japan are offer, and this

may adversely impact our ability to be competitive, which may adversely affect our business, financial condition,

and results of operations.

Many innovative start-up companies and larger companies have made, and continue to make, significant

investments in research and development, and we expect these companies to continue to develop products and

technologies that compete with our products. More traditional financial and non-financial services businesses may

also choose to offer crypto asset trading services and other crypto-based services in the future as such services gain

acceptance. Our current and potential competitors may establish cooperative relationships among themselves or with

third parties that may further enhance their resources and their marketing efforts, which could require us to increase

our own marketing efforts and incur higher advertising expenses in order to remain competitive. Due to our

dependence on revenue from transactions on our Marketplace platform, if current or future competitors offer trading

at spreads or commission levels more favorable to retail users than those we offer, our competitive position and

operating results could be materially and adversely affected.

Some of our existing competitors have, and some of our potential competitors may or will have, various

competitive advantages over us, such as:

• the ability to trade crypto assets and offer products and services that we do not support or offer on our

cryptocurrency marketplace or exchanges, or NFT marketplace (due to constraints from regulatory

authorities and other factors);

• greater name recognition, longer operating histories, larger customer bases and larger market shares;

• larger sales and marketing budgets and organizations;

• more established marketing, banking, and compliance relationships;

• greater customer support resources;

• greater resources to make acquisitions;

• lower labor, compliance, risk mitigation, and research and development costs (in total cost or as a

percentage of total revenue);

• larger and more mature intellectual property portfolios;

• a greater number of applicable licenses or similar authorizations, including registration as a Type I

Financial Instruments Business operator (derivatives, margin, and proprietary securities transactions) in

Japan (although we plan to apply for a Type I license later this year, we do not currently have one,

acquiring one requires substantial increased capitalization and regulatory approval, and there is no

assurance that we will be approved or decide or be able to provide such increased capitalization, which

we estimate may require approximately an additional several billion yen of net capital for Coincheck);

• established core business models outside of the trading of crypto assets;

• operations in jurisdictions with lower compliance costs and greater flexibility to explore new product

offerings;

• the ability to offer decentralized and noncustodial platforms; and

• substantially greater financial, technical, and other resources.

If we are unable to compete successfully, or if competing successfully requires us to take costly actions in

response to the actions of our competitors, our business, operating results, and financial condition could be adversely

affected.

***We compete against a growing number of decentralized and noncustodial exchanges and platforms and our***

***business may be adversely affected if we fail to compete effectively against them.***

We compete against an increasing number of decentralized and noncustodial exchanges and platforms. On

these exchanges or platforms, users can interact directly with a market-making smart contract or on-chain trading

mechanism to exchange one type of crypto asset for another without any centralized intermediary. We believe that

these exchanges and platforms are typically not as easy to use as our cryptocurrency platforms, and generally lack

the speed and liquidity of such kinds of well-operated platforms, like we believe ours to be, but various innovative

models and incentives have been designed to bridge the gap. Also, decentralized and noncustodial exchanges and

platforms are often thought to be less vulnerable to hacking since users do not need to transfer their assets to a third

party, and therefore have more exclusive control over their assets. Concerns about the security of assets following

incidents on crypto exchanges, such as the Chapter 11 bankruptcy filing of FTX and allegations of fraud and

mismanagement of funds against its founder and former CEO, may also increase user adoption of decentralized and

noncustodial platforms. Further, transaction fees on decentralized exchanges may be lower than ours. Decentralized

exchanges also do not require their users to fill out "know-your-customer," or "KYC" forms, offering an additional

layer of privacy to those who use them. Such decentralized exchanges and platforms also tend to have lower start-up

and entry costs as market entrants often remain unregulated and have minimal operating and regulatory costs, and

often have lower transactional fees for users. A significant number of decentralized exchanges or platforms that have

been developed and released, including on Ethereum, Avalanche, Tron, Polkadot and Solana, have experienced

significant growth and adoption. We expect interest in decentralized and noncustodial exchanges and platforms to

grow further as the industry develops. If the demand for decentralized exchanges and platforms grows and we are

unable to compete with them, our business may be adversely affected.

***If we cannot keep pace with rapid industry changes to provide new and innovative products and services, the use***

***of our products and services, and consequently our total revenue, could decline, which would adversely impact***

***our business, operating results, and financial condition.***

The crypto asset industry has been characterized by rapid change and the introduction of disruptive

products and services in recent years. These include decentralized applications, DeFi, yield farming, lending,

staking, staking reward programs, token wrapping, governance tokens, innovative programs to attract customers

such as transaction fee mining programs, initiatives to attract traders such as trading competitions, airdrops and

giveaways, and novel cryptocurrency fundraising and distribution schemes. We expect new services and

technologies to continue to emerge and evolve, and they may be superior to, or render obsolete, the products and

services that we currently provide. We cannot accurately predict the effects of new services and technologies on our

business. Our ability to grow our customer base and total revenue will depend heavily on our ability to innovate and

create successful new products and services, both independently and in conjunction with third-party developers, and

we may not be successful doing so timely or all. Further, any new products or services we do offer could fail to

attract customers, generate revenue, or perform or integrate well with third-party applications and platforms. Our

ability to adapt and compete with new products and services may also be inhibited by regulatory requirements or

limitations and general uncertainty in the law, constraints by our banking partners and payment processors, third-

party intellectual property rights, or other factors. Moreover, in addition to product and service innovations, and

potentially as part of developing and offering them, we must continue to enhance our technical infrastructure to

support the required functionality, performance, capacity, security, ease-of-use and speed to attract and retain

customers. We anticipate significant costs and resources to effectively create, develop, enhance and upgrade our

products, services and technical infrastructure to meet the evolving needs of our business and remain competitive. If

we are unable to do so in a timely or cost-effective manner, our business and our ability to successfully compete, our

ability to retain existing customers and attract new customers, may be adversely affected.

***Changes in economic conditions and consumer sentiment in Japan could cause demand for our products and***

***services to be lower than we anticipate.***

We currently derive all of our total revenue from operations in Japan. Accordingly, our performance is

subject to general economic conditions in Japan and their impact on our base of primarily retail customers. Japan has

experienced downturns in which economic activity declined resulting in lower consumption rates, restricted credit,

reduced profitability, weaknesses in financial markets, bankruptcies and overall uncertainty with respect to the

economy. The outlook for the Japanese economy remains uncertain. In addition, an aging demographic, a declining

birth rate, the overall decline of Japan's population (including the working-age population), political tensions

between Japan and some of its neighboring countries (such as China and North Korea), and currency fluctuations are

additional factors that add to the uncertainty surrounding the future of the Japanese economy. The impact of

economic conditions in Japan on the trading of crypto assets is highly uncertain and dependent on a variety of

factors, including market adoption, global trends, central bank monetary policies, regulations and other events

beyond our control. To the extent that general economic conditions in Japan materially deteriorate, our ability to

attract and retain customers may suffer. While we have seen a steady increase over the years in the trading of crypto

assets by Japanese retail investors, there can be no assurance that consumer sentiment towards crypto assets and

crypto exchange platforms will not worsen in the future. A lack of growth in, or a drop in demand for, trading of

crypto assets by Japanese retail investors would adversely affect our growth prospects and results of operations.

***Due to our limited operating history (and the limited operating history of crypto assets generally), it may be***

***difficult to evaluate our business and future prospects, and we may not be able to achieve or maintain***

***profitability in any given period.***

We began operations in 2012 and publicly launched our crypto asset trading service in 2014. Our revenue

has significantly grown since our formation, but there is no assurance that this growth rate will continue in future

periods and you should not rely on the revenue growth of any prior quarterly or annual period as an indication of our

future performance. Our limited operating history and the volatile nature of our business make it difficult to evaluate

our current business and our future prospects. We have also encountered, and will continue to encounter, risks and

difficulties frequently experienced by growing companies in rapidly changing and heavily regulated industries,

including achieving market acceptance of our products and services, attracting and retaining customers, complying

with laws and regulations that are subject to evolving interpretations and application, and increasing competition and

expenses as we seek to expand our business. We cannot be sure that we will be successful in addressing these and

other challenges we may face, and our business may be adversely affected if we do not manage these risks

successfully.

***The majority of our revenue is from transactions on our Marketplace platform in certain crypto assets,***

***particularly Bitcoin, Ethereum and XRP. If demand for a now heavily-traded crypto asset declines and is not***

***replaced by new demand for other crypto assets on our platforms, our business, operating results, and financial***

***condition could be adversely affected.***

Our Marketplace platform, as of March 31, 2025, supports 30 different types of cryptocurrencies for trading

and custody. Because we only support trading in cryptocurrencies that have been approved for trading by crypto

asset exchange operators in Japan under the guidelines of the JVCEA, we support fewer types of crypto assets than

some exchange operators in other jurisdictions. For the fiscal years ended March 31, 2024 and 2025, we derived the

majority of our revenue from transactions on Bitcoin, Ethereum and XRP. Depending on broader trends within the

crypto asset market, our total revenue may be concentrated into certain specific crypto assets at various times in the

future. As a result, our business may be adversely affected if the market for Bitcoin, Ethereum, XRP or any

particular crypto asset that is being heavily traded on our platforms deteriorates, which could be caused by one or

more of the following factors:

• the reduction in mining rewards of Bitcoin, including block reward halving events, which are events

that occur after a specific period of time which reduces the block reward earned by miners;

• disruptions, hacks, splits in the underlying network (also known as "forks"), attacks by malicious

actors who control a significant portion of the networks' hash rate (such as double spend or 51%

attacks), or other similar incidents affecting the Bitcoin or Ethereum blockchain networks;

• hard "forks" resulting in the creation of and divergence into multiple separate networks;

• the ability for blockchain networks to resolve significant scaling challenges and increase the volume

and speed of transactions;

• transaction congestion and fees associated with processing transactions on the Bitcoin, Ethereum or

other networks;

• informal governance led by the core developers of crypto assets we offer that are heavily traded by our

customers, which can lead to revisions to the underlying source code or inactions that prevent network

scaling, and which evolve over time largely based on self-determined participation, which may result

in new changes or updates that affect speed, security, usability or value;

• the identification of Satoshi Nakamoto, the pseudonymous person or persons who developed Bitcoin,

or the transfer of Satoshi's Bitcoin, if there turns out to be negative reputation or perceptions associated

with such person or persons;

• negative perception of Bitcoin, Ethereum, XRP or any other specific crypto asset we offer that is

currently popular with our customers;

• development in mathematics, technology, including in digital computing, algebraic geometry, and

quantum computing that could result in the cryptography being used by these specific crypto assets

becoming insecure or ineffective;

• regulatory or legislative restrictions or limitations on lending, mining or staking activities, including a

finding that offering lending, mining or staking services to customers as a means to generate passive

yield constitutes offering of a security under the laws of a particular jurisdiction; and

• laws and regulations affecting the networks of Bitcoin, Ethereum, XRP or another specific crypto asset

that is popular, or access to these networks, including a determination that Bitcoin, Ethereum, XRP or

such other specific crypto asset constitutes a security or other regulated financial instrument under the

laws of any applicable jurisdiction.

***The recent trend in public companies embracing Bitcoin as part of their corporate treasury strategy, particularly***

***as a leveraged strategy, could, to the extent such strategies fail, drive down the price of Bitcoin and other crypto***

***assets, which could negatively affect our trading volume and business.***

In recent years, an increasing number of companies have embraced Bitcoin as part of their corporate

treasury strategy. According to Cointelegraph, by mid-2025 over 220 public companies worldwide had adopted

including Bitcoin in their treasury strategies, collectively holding about 592,100 BTC (roughly $60.03 billion in

value as of June 23, 2025). This has led to the creation of what some call "Bitcoin proxies," stocks whose values

largely mirror Bitcoin's price fluctuations. However, the risks are significant. Bitcoin is highly volatile, with its price

subject to sharp fluctuations within short periods. Several of these companies finance their Bitcoin purchases, so that

many Bitcoin-heavy firms issue new stock or take on debt to raise capital for Bitcoin acquisition.

Overreliance on Bitcoin in corporate treasuries, given Bitcoin's volatility, can lead to a decrease in

shareholder confidence and capital erosion (a company's financial strategy leading to a reduction in its value) for

these publicly traded companies. If Bitcoin's price falls sharply, these leveraged companies might find themselves

overextended, unable to raise funds or cover liabilities. This could lead to significant financial impacts, potentially

triggering forced asset sales and affecting market dynamics amid economic downturn worries. If the capital

supporting these strategies dries up as loans mature, lenders could call in margins and force sales, further depressing

Bitcoin prices. The risk of cascading liquidations and the unwinding of BTC positions could have profound effects

on market stability, potentially resulting in broader economic repercussions. Significant decline in the price of

Bitcoin and other crypto assets that may result could negatively affect our trading volume and business.

***We are subject to extensive regulation in Japan and any adverse changes to, or our failure to comply with, any***

***laws and regulations could adversely affect our brand, reputation, product and service offerings, business,***

***operating results, and financial condition.***

Our business is subject to ongoing examinations, oversight, and reviews, by Japanese regulators and self-

regulatory organizations, including, but not limited to, the JFSA and the JVCEA. We received our license as a

crypto asset exchange service provider from the JFSA in January 2019. We are required to periodically submit

business and audit reports and are subject to examinations by these regulatory authorities. As a result of findings

from these audits and examinations, regulators have and may in the future require us to take certain actions,

including amending, updating, or revising our compliance measures from time to time, limiting the kinds of

customers to whom we provide services, changing, terminating, or delaying our licenses that relate to or cover

existing or introduction of new product and services, requiring us to have further external or internal audits, or

requiring us to submit or be subject to further regulatory scrutiny, including investigations and inquiries. We have

received, and may in the future receive, examination reports citing violations of rules and regulations, inadequacies

in existing compliance programs, and requiring us to enhance certain practices with respect to our compliance

program, including due diligence, monitoring, training, reporting, and recordkeeping. Implementing appropriate

measures to properly remediate these examination findings may require us to incur significant costs, and if we fail to

properly remediate any of these examination findings we could face civil litigation, significant fines, damage

awards, forced removal of certain employees (including members of our executive team), barring of certain

employees from participating in our business in whole or in part, revocation of existing licenses, limitations on

existing and new products and services, reputational harm, negative impact to our existing relationships with

regulators, exposure to criminal liability, or other regulatory consequences. Further, new laws, regulations, or

interpretations may result in additional litigation, regulatory investigations, and enforcement or other actions,

including preventing or delaying us from offering certain products or services offered by our competitors or which

could impact how we offer such products and services. Adverse changes to, or our failure to comply with, any laws

and regulations have had in the past, and could again have in the future, an adverse effect on our reputation and

brand and our business, operating results, and financial condition. For further information on the regulations we are

subject to, see the section entitled "Business Overview — Regulatory Environment."

An important focus of regulatory oversight is to assess our financial soundness. If we fail to maintain

sufficient liquidity and capital resources, our business and trading operations could be adversely affected and we

could also be subject to regulatory consequences, including requirements to inject significant additional capital in

our regulated entities. It is possible that new or enhanced capital or liquidity requirements could be introduced in the

future.

In addition, Coincheck's Chairman, Representative Director & Executive Director, Satoshi Hasuo (who is

also Coincheck Parent's Chief Operating Officer), also serves as a director of the JVCEA, which could potentially

result in a conflict of interest. We are not aware of any such conflicts of interest and believe that the possibility of

any information being shared with Mr. Hasuo that could cause a conflict of interest is limited, but there can be no

assurances. See "Business Overview — Regulatory Environment — Self-Regulatory Organization and Self-

Regulatory Rules on Crypto Asset Exchange Service Providers."

***We could be subject to administrative sanctions, including fines, or legal claims if we are found to have offered***

***services in violation of the laws of jurisdictions other than Japan or to have violated international sanctions***

***regimes.***

Legal and regulatory regimes in a range of areas, including crypto asset custody, exchange, and transfer,

money and crypto asset transmission, foreign currency exchange, privacy, data governance, data protection,

cybersecurity, fraud detection, tax, anti-bribery, anti-money laundering, and counter-terrorist financing, vary widely

between Japan and other jurisdictions and are still developing and changing to address issues relating to crypto

assets. These legal and regulatory regimes are evolving rapidly and may be modified, interpreted, and applied in an

inconsistent manner from one jurisdiction to another. We currently only offer crypto asset exchange services to

customers in Japan and take steps to ensure that customers outside of Japan cannot circumvent our account opening

procedures. We also have procedures to restrict access from IP addresses in jurisdictions outside of Japan, including

the United States. However, these procedures may not always be effective. For instance, the use of a virtual private

network may allow users from IP addresses outside of Japan to misrepresent their true locations and gain access to

our platform. If our procedures are ineffective or if we are otherwise determined to have violated applicable laws

and regulations in other jurisdictions, including the United States, the European Union or elsewhere, we could be

subject to administrative sanctions, including fines, or legal claims based on the laws of such other jurisdictions. For

example, if individuals located in the United States were able to evade our user restrictions and gain access to our

services, we could be deemed to be operating in the United States as an unregistered national securities exchange, an

unregistered securities broker-dealer (or unlicensed or unregistered money transmitter or money services business)

and/or an unregistered clearing agency with respect to our crypto asset exchange services and could therefore be

subject to administrative sanctions or legal claims in the United States.

Also, while we currently only operate in Japan, certain of our transactions or dealings nevertheless may

become subject, as a jurisdictional matter, to economic sanctions laws and regulations imposed by governmental

authorities outside of Japan, such as those administered and enforced by the U.S. Department of the Treasury's

Office of Foreign Assets Control ("OFAC"). We have taken steps designed to comply with sanctions imposed by

Japan, the United States, and other relevant regulators, and to prevent our users from using our cryptocurrency

exchange to conduct transactions or dealings with countries, regions, and persons sanctioned by Japan, the

United States, and other governments, but we cannot guarantee that these safeguards will be effective. Any failure to

comply with these sanctions may expose us to reputational harm as well as significant penalties, including criminal

fines, imprisonment, civil fines, disgorgement of profits, as well as other remedial measures. Investigations of

alleged violations can be expensive and disruptive, and any such violation (or allegation of a violation) could

adversely affect our business, financial condition, and results of operations.

***If the utility and usage of crypto assets, the development of which is difficult to predict, do not grow as we expect,***

***our business, operating results, financial condition and prospects could be adversely affected.***

Crypto assets built on blockchain technology were first introduced in 2008 and remain, in our view, in the

early stages of development. In addition, different crypto assets are designed for different purposes. Bitcoin, for

example, was designed to serve as a peer-to-peer electronic cash system, while Ethereum was designed to be a smart

contract and decentralized application platform. The further growth and development of particular crypto assets and

their underlying networks and other cryptographic and algorithmic protocols governing the creation, transfer, and

usage of crypto assets are subject to a variety of factors that are difficult to evaluate or predict, including the

following:

• Many crypto networks have limited operating histories, have not been validated in production, are still

in the process of developing, and are therefore subject to significant decisions that will affect the

design, supply, issuance, functionality, and governance of their respective crypto assets and

blockchains, any of which could adversely affect their respective crypto assets.

• Many crypto networks implement software upgrades and other changes to their protocols which could

introduce bugs, security risks, or otherwise adversely affect them.

• Several large networks develop new features to address fundamental speed, scalability, and energy

usage issues. If these issues are not successfully addressed, or if proposed solutions are unable to

receive widespread adoption, or those development modifications cause new unintended issues, that

could adversely affect the underlying crypto assets.

• Security issues, bugs, and software errors have been identified with many crypto assets and their

underlying blockchain networks, some of which have been exploited by malicious actors. There are

also inherent security weaknesses in some crypto assets, such as when creators of certain crypto

networks use procedures that could allow hackers to counterfeit tokens. Any weaknesses identified

with a crypto asset could adversely affect its price, security, liquidity, and adoption. If a malicious

actor or botnet (a volunteer or hacked collection of computers controlled by networked software

coordinating the actions of the computers) obtains a majority of the compute power or staking power

on a crypto network, as has happened in the past, it may be able to manipulate transactions which could

cause financial losses to holders, damage the network's reputation and security, and adversely affect its

value.

• The development of new technologies for mining, such as improved application-specific integrated

circuits (commonly referred to as ASICs), or changes in industry patterns, such as the consolidation of

mining power in a small number of large mining farms, could reduce the security of blockchain

networks, affect liquid supply of crypto assets and the speed of transactions, and reduce a particular

crypto asset's attractiveness and price.

• If rewards and transaction fees for miners or validators on any particular crypto network are not

sufficiently high to attract and retain miners, a crypto network's security and speed may be adversely

affected, increasing vulnerability to a malicious attack;

• Many crypto assets have concentrated control, through an "admin key," that allows a small group of

holders to have significant unilateral control and influence over key decisions relating to their crypto

networks, such as governance decisions and protocol changes, as well as the market price of such

crypto assets.

• The governance of many decentralized blockchain networks is by voluntary consensus and open

competition, and many developers are not directly compensated for their contributions. As a result,

there may be a lack of consensus or clarity on the governance of any particular crypto network, a lack

of incentives for developers to maintain or develop the network, and other unforeseen issues, any of

which could result in unexpected or undesirable errors, bugs, or changes, or stymie the network's

utility and ability to respond to challenges and grow.

• Many crypto networks are in the early stages of developing partnerships and collaborations which may

not succeed and adversely affect the usability and adoption of the respective crypto assets they support.

Various other technical issues have been uncovered from time to time in our industry that have resulted in

disabled functionalities, exposure of certain users' personal information, theft of users' assets, and other negative

consequences, and which required resolution by their global miner, user, and development communities. If any such

risks materialize, and in particular if they are not resolved in a timely manner, the development and growth of crypto

may be significantly affected and, as a result, our business, operating results, and financial condition could be

adversely affected.

***A particular crypto asset's status as a "security" in any relevant jurisdiction remains subject to a high degree of***

***uncertainty.***

All of the crypto assets that we currently offer on our cryptocurrency exchanges, which are offered only to

Japanese residents, have been confirmed by the JVCEA for trading in Japan by companies registered as crypto asset

exchange service providers with the JFSA under the Payment Services Act. Although regulators outside of Japan,

including those in the United States, have taken the position that certain crypto assets fall within the definition of a

"security" under their country's securities laws, these crypto assets are not currently considered a "security" in

Japan. There can be no assurance that the laws and regulations in Japan will not change in the future, especially if

laws or regulatory bodies in Japan later decide to adopt "is it a security" analyses similar to those used in other

jurisdictions, such as the U.S. The classification of a crypto asset as a security under applicable law has wide-

ranging implications for the regulatory obligations that flow from the offer, sale, trading, and clearing of such assets.

As there can be no assurance that such regulation will not change or that future crypto assets will have differing

treatments, we could be subject to legal or regulatory action in the event that a regulatory authority, or a Japanese

court, were to determine that a supported crypto asset currently offered, sold, or traded on our cryptocurrency

exchanges is a "security" under applicable laws or new rules or guidance. Successful completion of the initial

screening process of a crypto asset and determination of no objection by the JVCEA is not binding on regulatory

authorities or courts in Japan in the event of a subsequent legal proceeding. If the JFSA or a court were to determine

that a supported crypto asset currently offered, sold, or traded on our cryptocurrency exchanges is a security, we

would not be able to offer such crypto asset for trading until we are able to do so in a compliant manner. Such an

action could result in penalties, fines and reputational harm while customers that traded such supported crypto assets

on our cryptocurrency exchanges and subsequently suffered trading losses could also seek to rescind a transaction

that we facilitated on the basis that it was conducted in violation of applicable law, which could subject us to

significant liability. Further, if a crypto asset supported on our cryptocurrency platforms is deemed to be a security

under the laws of foreign jurisdictions, including the United States (as was the case with XRP which, depending on

the context, some courts categorize as a security and others do not), it may have adverse consequences for the

market for such supported crypto asset, including an adverse impact on its liquidity. Networks on which such

supported crypto assets are utilized may also be subject to regulation as securities intermediaries, which could

effectively render operation of the networks for their existing purposes impracticable.

***We also operate Coincheck NFT Marketplace, which may expose us to legal, regulatory, and other risks that***

***could adversely affect our business, operating results, and financial condition.***

We operate Coincheck NFT Marketplace, which was launched in March 2021. While NFTs and

cryptocurrencies are similar in that both are based on blockchain technology, unlike cryptocurrency units, which are

fungible, NFTs have unique identification codes and often reference content in areas such as games, arts and sports.

NFTs are a relatively newer and emerging type of digital asset, and the regulatory, commercial, and legal framework

governing NFTs is expected to evolve both in Japan and other jurisdictions. NFTs, as unique items, are not currently

regulated as crypto assets under Japan's PSA, and we review supported NFTs before inclusion to confirm whether

they could be regarded as either "securities" or "crypto assets" under current Japanese regulations. It is possible,

however, that our determination of the status of particular NFTs could be challenged or that new regulations

applicable to buying and selling of NFTs generally could be introduced in Japan. Our Coincheck NFT Marketplace

is only available to customers who have established crypto asset exchange services accounts with us and therefore

were subject to our KYC approval process. There can be no assurance that the KYC and other procedures that we

have implemented for our crypto asset exchange services accounts will be sufficient to comply with any future

regulations applicable to the operation of Coincheck NFT Marketplace, and we could be required to make changes

to our Coincheck NFT Marketplace or other operating procedures in order to comply with any such regulations,

which could adversely affect the success of our Coincheck NFT Marketplace and harm our business, operating

results, and financial condition.

As the trading of NFTs potentially implicates issues regarding a range of matters, including, but not limited

to, intellectual property rights, privacy and cybersecurity, fraud, anti-money laundering, money transmission,

sanctions, and currency, commodity, and securities law compliance, to help manage risks we have established an

approval process, conducted in three stages, with our Business Development Office performing the initial review

and the Legal & Compliance Department performing the secondary review prior to the final review by an internal

review committee, based on the following criteria, which is whether:

• the NFT is a non-substitutable token recorded on the blockchain, or whether the token standard is

ERC-721 or not, as we currently only support ERC-721;

• the listing of the NFT on the Coincheck NFT Marketplace is regulated by any applicable laws or

regulations;

• the NFT itself breaches any applicable laws and rights (including whether any work is being used

without the permission of the copyright holder);

• the operating company of the NFT has any particular issues (including whether it engages with or is

considered to be an anti-social force); and

• the operating company of the NFT is in compliance with applicable laws and regulations in connection

with the NFT.

There can be no assurance that the procedures we use are sufficient to comply with applicable laws and

regulations, which remain uncertain and subject to rapid changes, or to identify all third-party rights issues. For

example, NFTs raise various intellectual property law considerations, including relating to ownership, copyrights,

trademarks and rights of publicity. The creator of an NFT will often have, or purport to have, all rights to the content

of the NFT and rights to assign to a buyer, such as the right to display, modify, or copy the content, so risks include

purchasing counterfeit items, or items alleged to be counterfeit, mislabeled items, items that are vulnerable to

metadata decay, items on smart contracts with bugs, intellectual property infringement claims, and items that may

become untransferable. To the extent that, despite our screening procedures for supported NFTs designed to prevent

such issues, we are directly or indirectly involved in a dispute between creators and buyers on our Coincheck NFT

Marketplace it could adversely affect the success of our Coincheck NFT Marketplace and harm our business,

operating results, and financial condition.

Although NFTs are generally not regulated or deemed crypto assets under Japan's PSA (See "Business

Overview — Regulatory Environment"), it is difficult to predict how the legal and regulatory framework around

NFTs will develop and how such developments will impact our business and our Coincheck NFT Marketplace.

Outside of Japan, the appropriate regulation of NFTs is under active study in major jurisdictions. For example, NFTs

are currently excluded from the scope of the European Union's Markets in Crypto Assets Regulation ("MiCA"), but,

pursuant to Article 142, the European Commission is required to publish a report assessing developments in the NFT

market and evaluate the necessity and feasibility of regulating NFTs and related services providers through

additional legislation. The European Commission's report pursuant to Article 142 of MiCA was first due on

December 31, 2024, which has been extended to December 31, 2025. In the United States, included within the

framework for responsible development of crypto assets announced in September 2022 was an instruction for the

U.S. Department of the Treasury to complete an illicit finance risk assessment on NFTs, which was published on

May 29, 2024. As part of its finding, the report recommends the continued monitoring and evaluation of the need for

additional guidance or rules to address financial risks associated with NFTs. Accordingly, significant additional new

regulation is likely to be enacted in the future, and that may include in Japan. Due to the novel and complex issues

involved, it is difficult to predict how any such developments will affect the development and operation of our

Coincheck NFT Marketplace, and it is possible that the regulations adopted in individual jurisdictions may conflict

with one another.

As is the case with other crypto assets, NFTs are also subject to theft through hacking, social engineering,

phishing, and fraudulently inducing individuals into delivering NFTs or providing access to NFTs to an

unauthorized third party. Any safeguards we have implemented or may implement in the future to protect against

these cybersecurity threats may be insufficient to prevent a malicious actor, and any such activity on our Coincheck

NFT Marketplace could result in reputational harm, or expenses or losses associated with mitigation efforts against

these incidents or third-party claims.

***The loss or destruction of private keys required to access any crypto assets held in custody for our customers may***

***be irreversible. If we are unable to access private keys or if we experience a hack or other data loss relating to our***

***ability to access any crypto assets, it could cause regulatory scrutiny, reputational harm and other losses.***

Crypto assets are generally controllable only by the possessor of the unique private key relating to the

digital wallet in which the crypto assets are held. While blockchain protocols typically require public addresses to be

published when used in a transaction, private keys must be safeguarded and kept private in order to prevent a third

party from accessing the crypto assets held in such a wallet. We hold the private key that is necessary for the transfer

of customers' crypto assets subject to strict limitations on its use under the regulations applicable to us as a crypto

asset exchange service provider in Japan. To the extent that any of the private keys relating to our hot or cold wallets

containing crypto assets held for our own account or for our customers is lost, destroyed, or otherwise compromised

or unavailable, and no backup of the private key is accessible, we will be unable to access the crypto assets held in

the related wallet. Further, we cannot provide assurance that our wallets will not be hacked or compromised. Any

loss of private keys relating to, or hack or other compromise of, digital wallets used to store our customers' crypto

assets could adversely affect our customers' ability to access or sell their crypto assets, require us to reimburse our

customers for their losses, and subject us to significant financial losses in addition to losing customer trust in us and

our products.

***If we fail to retain existing customers or add new customers, or if our customers decrease their level of***

***engagement with our products, services and platform, our business, operating results, and financial condition***

***may be significantly harmed.***

Our success depends on our ability to retain existing customers and attract new customers and to increase

engagement with our products, services and platforms. To do so, we must continue to offer leading technologies and

ensure that our products and services are secure, reliable and engaging, and competitively priced. We have

historically targeted retail investors new to investing in crypto assets, and the quality of our UI/UX, especially for

smartphone users, and the provision of information to such investors is a key competitive factor. (UI refers to user

interface design, a human-first approach to product design that focuses on the effectiveness of products, and UX

refers to user experience design, a human-first approach to product design that focuses on the aesthetic experience of

products.) There is no assurance that we will be able to retain our current customers or attract new customers, or

keep our customers engaged. In particular, as the majority of our total revenue is currently derived from Japanese

retail customers, we are sensitive to any changes in sentiment among retail investors. Moreover, as we seek to attract

new customers, we may try to expand to institutional customers within Japan, and we may be unsuccessful in any

such expansion efforts due to differences in needs and expectations between Japanese institutional and retail

customers. Any number of factors can negatively affect our customer retention, growth, and engagement, including

if:

• customers increasingly engage with competing products and services, including products and services

that we are unable to offer or do not offer;

• we fail to support new and in-demand crypto assets or if we elect to support crypto assets with negative

reputations;

• our more recently offered products and services, such as our Coincheck NFT Marketplace or IEO

business, are unsuccessful in achieving our expected goals for such products and services;

• there are adverse changes in our products and services that are mandated by legislation, regulatory

authorities, or litigation;

• customers perceive the crypto assets on our cryptocurrency marketplace or exchanges, or NFT

marketplace, to be bad investments, or experience significant losses in investments made using our

crypto asset product or service offerings;

• technical or other problems prevent us from delivering our products and services with the speed,

functionality, security, and reliability that our customers expect;

• cybersecurity or other incidents causes losses to us or our customers, including losses to assets held by

us on behalf of our customers;

• our pricing model is or becomes uncompetitive;

• we fail to provide adequate customer service to customers; or

• we or other companies in our industry are the subject of adverse media reports or other negative

publicity.

If we are unable to maintain or increase our customer base and customer engagement, our total revenue and

financial results may be adversely affected.

***Many of our customers are first-time users and our trading volumes and total revenues could be reduced if these***

***customers stop trading crypto assets altogether or stop using our Marketplace platform services for their trading***

***activities.***

Our business model focuses on making crypto assets accessible to a broad demographic of retail customers

in Japan, including first-time users. The number of new accounts opened with us by retail investors totaled 182,178,

178,949 and 309,951 in the years ended March 31, 2023, 2024 and 2025, respectively. Our success, and our ability

to increase total revenue, depends in part on such customers continuing to utilize our cryptocurrency exchanges and

platforms, even as crypto asset prices fluctuate and economic conditions change. Our customers do not have long-

term contractual arrangements with us and may cease to use our cryptocurrency exchanges at any time. Retail

investors, including particularly first-time and younger-aged users, which constitute a significant portion of our

customer base, may be more inclined to explore or move to competing platforms that seek to target the same

demographic and to stop trading crypto, some perhaps 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 due to chargebacks as a result of fraud or uncollectibility that may***

***adversely impact our business, operating results, and financial condition.***

In the past, certain of our products and services were able to be paid for by credit and debit cards through

payment processors which exposed us to risks associated with chargebacks and refunds. Although we currently do

not accept either credit or debit cards for payment, if we return to allowing the use of credit or debit cards in the

future we may be exposed to various losses as a result of fraud or uncollectibility that could arise from fraud,

misuse, unintentional use, settlement delay, or other activities. If we were to resume allowing the use of credit or

debit cards and begin incurring a significant number of refunds and chargebacks, our payment processors could

require us to increase reserves, impose penalties on us, charge additional fees, or terminate their relationships with

us. Failure to effectively manage risk and prevent fraud could increase our chargeback and refund losses or cause us

to incur other liabilities. Increases in chargebacks, refunds or other liabilities, were we to resume allowing the use of

credit or debit cards, could have an adverse effect on our operating results, financial condition, and cash flows.

***If we fail to develop, maintain, and enhance our brand and reputation, our business, operating results, and***

***financial condition may be adversely affected.***

Our brand and reputation are key assets. Maintaining, protecting, and enhancing our brand depends largely

on the success of our marketing efforts, ability to provide consistent, high-quality, and secure products, services,

features and support, and our ability to successfully secure, maintain, and defend our rights to use the "Coincheck"

mark and other trademarks important to our brand. We believe that the ease-of-use of our products and services, in

particular due to the quality and simplicity of our application interface, is a differentiating factor for our brand. We

believe that the importance of our brand and reputation will increase as competition further intensifies. Our brand

and reputation could be harmed if we fail to achieve these objectives or if our public image were to be tarnished by

negative publicity, unexpected events, or actions by third parties. Unfavorable publicity about us or our brand,

including our products, services, technology, customer service, personnel, or about crypto assets or crypto asset

platforms generally that may indirectly have a negative effect on our brand, could diminish confidence in, and the

use of, our products and services. Such negative publicity also could have an adverse effect on the size and

engagement of our customers and could result in decreased total revenue, which could have an adverse effect on our

business, operating results, and financial condition.

***Our key business metrics and other estimates are subject to inherent challenges in measurement, and our***

***business, operating results, and financial condition could be adversely affected by real or perceived inaccuracies***

***in those metrics.***

We regularly review key business metrics, including the number of verified and active users, trading

volume, customer assets and other measures to evaluate growth trends, measure our performance, and make strategic

decisions. These key metrics are calculated using internal company data and have not been validated by an

independent third party. In particular, we need to be vigilant that our verified users do not include users who should

be discarded in the calculation as invalid accounts due to fraud, trading bans, or spam or other reasons. While these

numbers are based on what we currently believe to be reasonable estimates for the applicable period of

measurement, there are inherent challenges in such measurements. If we fail to maintain an effective analytics

platform, our key metrics calculations may be inaccurate, and we may not be able to identify those inaccuracies. We

regularly review our processes for calculating these metrics, and from time to time we make adjustments to improve

their accuracy. We generally will not update previously disclosed key business metrics for any such inaccuracies or

adjustments that are immaterial. If our metrics provide us with incorrect or incomplete information about users and

their behavior, we may make inaccurate conclusions about our business.

***Unfavorable media coverage could negatively affect our business.***

We receive a high degree of media coverage in Japan. Unfavorable publicity regarding, for example, our

product changes, product quality, litigation or regulatory activity, privacy practices, terms of service, employment

matters, the use of our products, services, or supported crypto assets for illicit or objectionable ends, the actions of

our customers, or the actions of other companies that provide similar services to ours, could adversely affect our

reputation. Further, we could in the future be the target of social media campaigns criticizing actual or perceived

actions or inactions that are disfavored by our customers, employees, or society at-large. Such campaigns could

materially impact our customers' decisions to trade on our crypto asset platforms. Any such negative publicity could

have an adverse effect on the size, activity, and loyalty of our customers and result in a decrease in our total revenue,

which could adversely affect our business, operating results, and financial condition.

***Our product and service offerings may be exploited to facilitate illegal activity such as fraud, money laundering,***

***gambling, tax evasion, and scams. If any of our customers use our platforms or offerings to further such illegal***

***activities, our business could be adversely affected.***

Our product and service offerings through our crypto asset platforms may be exploited to facilitate illegal

activity including fraud, money laundering, gambling, tax evasion and scams. We may be specifically targeted by

individuals seeking to conduct fraudulent transfers, and it may be difficult or impossible for us to detect and avoid

such transactions in several circumstances. The use of our platforms for illegal or improper purposes could subject

us to claims, lawsuits, and government and regulatory investigations, prosecutions, enforcement actions, inquiries,

or requests that could result in liability and reputational harm for us. In the event that a customer is found

responsible for intentionally or inadvertently violating the laws in Japan or elsewhere, we may be subject to

governmental inquiries, enforcement actions, prosecuted, or otherwise held secondarily liable for aiding or

facilitating such activities. As a licensed crypto asset exchange service provider in Japan, we are required to

implement KYC and other preventative measures mandated under Japan's Act on Prevention of Transfer of

Criminal Proceeds and monitored by the JFSA. We have in the past reported instances of non-compliance, and any

future failure to maintain sufficient preventative measures could result in regulatory consequences and damage to

our reputation. Changes in law have also increased the penalties for certain illegal activities, and government

authorities may consider increased or additional penalties from time to time. Any threatened or resulting claims

could result in reputational harm, and any resulting liabilities, loss of transaction volume, or increased costs could

harm our business.

Crypto assets generally have characteristics, such as the speed with which digital currency transactions can be

conducted, the ability to conduct transactions without the involvement of regulated intermediaries, the ability to

engage in transactions across multiple jurisdictions, the irreversible nature of certain crypto asset transactions, and

encryption technology that anonymizes these transactions, that make crypto assets (as opposed to fiat currencies)

more susceptible to use in illegal activity. Various regulatory authorities and law enforcement agencies have taken

and continue to take legal action against persons and entities alleged to be engaged in fraudulent schemes or other

illicit activity involving crypto assets.

While we believe that our risk management and compliance framework is designed to comply with the

regulations applicable to our operations in Japan and to detect significant illicit activities conducted by our potential

or existing customers, we cannot ensure that we will be able to detect all illegal activity. If we introduce new

services additional challenges may present themselves in monitoring for illicit activities. If any of our customers use

our platforms to further such illegal activities, our business could be adversely affected.

***Our compliance and risk management methods might not be effective and may result in outcomes that could***

***adversely affect our reputation, operating results, and financial condition.***

We are subject to significant regulatory oversight in Japan, and our ability to comply with applicable complex

and evolving laws, regulations, and rules is largely dependent on the establishment and maintenance of our

compliance, audit, and reporting systems, as well as our ability to attract and retain qualified compliance and other

risk management personnel. While we have devoted significant resources to develop policies and procedures to

identify, monitor, and manage our risks, and expect to continue to do so in the future, we cannot assure you that our

policies and procedures will always be effective. Our risk management policies and procedures rely on a

combination of technical and human controls and supervision that are subject to error and failure. Some of our

methods for managing risk are discretionary by nature and are based on internally developed controls and observed

historical market behavior, and also involve reliance on standard industry practices. These methods may not

adequately prevent losses, particularly as they relate to extreme market movements, which may be significantly

greater than historical fluctuations in the market. Our risk management policies and procedures also may not

adequately prevent losses due to technical errors if our testing and quality control practices are not effective in

preventing failures. In addition, we may elect to adjust our risk management policies and procedures to allow for an

increase in risk tolerance, which could expose us to the risk of greater losses.

Regulators periodically review our compliance with our own policies and procedures and with a variety of

laws and regulations. In addition, we face the risk of significant intervention by regulatory authorities, including

extensive examination and surveillance activities. We have received in the past, and may from time to time receive,

additional examination reports citing violations of rules and regulations or inadequacies that require us to enhance

certain practices with respect to our compliance program, including due diligence, training, monitoring, reporting,

and recordkeeping. If we fail to comply with these, or do not adequately remediate certain findings, regulators could

take a variety of actions that could impair our ability to conduct our business, including delaying, denying,

withdrawing, or conditioning approval of certain products and services. In the case of non-compliance or alleged

non-compliance, we could be subject to investigations and proceedings that may result in substantial penalties or

civil lawsuits, including by customers. Any of these outcomes would adversely affect our reputation and brand and

business, operating results, and financial condition. Some of these outcomes could adversely affect our ability to

conduct our business.

***We may suffer losses due to abrupt and erratic market movements.***

The crypto asset market has been characterized by significant volatility and unexpected price movements.

Certain crypto assets may become more volatile and less liquid in a very short period of time, resulting in market

prices being subject to erratic and abrupt market movement, which could harm our business. For instance, abrupt

changes in volatility or market movement can lead to extreme pressures on our cryptocurrency exchanges and

infrastructure that can lead to inadvertent suspension of services across parts of the platform or the entire platform.

In addition, we hold certain crypto assets separately from the crypto assets of our customers in order to ensure

liquidity for our customers. We utilize the value-at-risk method to help manage the market risk of such crypto assets

held and we monitor the supply volume and transaction value of each crypto asset that we offer on our Marketplace

platform for liquidity risk on a daily basis relative to our capital. However, as crypto assets are usually significantly

more volatile than other financial assets, these periods of volatility and unexpected price fluctuations may affect our

financial position and business performance if our risk management and liquidity risk procedures are not effective.

One way in which we limit our exposure to market risk is by borrowing crypto assets from our customers under our

Coincheck Lending program. Under the terms of the borrowing agreements, we return the subject crypto assets in

kind at the end of the specified borrowing period. If borrowing from our customers becomes limited or unavailable,

we might need to purchase and hold crypto assets in order to use them to facilitate the operations of our Marketplace

platform, increasing our exposure to price fluctuations to the extent of the crypto assets held.

***Negative publicity associated with crypto asset platforms, including instances of potential fraud, the bankruptcy***

***of industry participants and the violation of applicable legal and regulatory requirements, may cause existing and***

***potential customers to lose confidence in crypto asset platforms.***

Crypto asset platforms are relatively new. Many of our competitors outside of Japan are unlicensed,

unregulated, operate without supervision by any governmental authorities, and do not provide the public with

significant information regarding their ownership structure, management team, corporate practices, cybersecurity,

and regulatory compliance. In addition, crypto assets may be more vulnerable than other types of assets to market or

price manipulation and other fraudulent practices due to the lack of regulations globally. A lack of transparency and

incidents of fraud or malfeasance that result in losses to investors may cause our existing or potential customers and

the general public to lose confidence in crypto asset platforms, including regulated platforms like ours. These

incidents may also lead to increased regulatory scrutiny in Japan and other jurisdictions.

Numerous crypto asset platforms and firms have, over the years, been sued, investigated, shut down or

suffered bankruptcy due to fraud, manipulative practices, business failure, and security breaches. In many of these

instances, customers of these platforms were not compensated or made whole for their losses. Larger platforms are

more appealing targets for hackers and malware and may also be more likely to be targets of regulatory enforcement

actions. Examples over the years have included Mt. Gox in 2014 (bankruptcy in Japan after an estimated 850,000

Bitcoin were stolen from its wallets), Binance in 2019 (hacked, resulting in losses of approximately $40 million),

Bitfinex in 2021 (alleged misuse of over $800 million of customer assets), FTX in 2022 (bankruptcy filing following

allegations of fraud and mismanagement and criminal conduct), DMM Bitcoin in 2024 (Japanese company, hacked,

resulting in loss of 4,502.9 Bitcoin, approximately ¥48.2 billion), and Bybit in 2025 (attack related to ETH cold

wallets, and possible loss of over 400,000 ETH worth approximately $1.5 billion).

Recent highly publicized regulatory actions, particularly in 2023, against large and well known crypto asset

companies over the years have been a source of intense negative publicity, including actions against or involving

Coinbase (alleged violation of securities laws), Binance and its co-founder and CEO (alleged violations of the

Commodity Exchange Act and CFTC regulations, misleading investors, and operating unregistered securities

businesses), FTX and its founder (criminal and civil fraud), Ripple Labs (alleged securities laws violations;

settlement in 2024 of action filed 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.

***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 assets will be permanently and irretrievably lost

with no means of recovery. We have encountered and expect to continue to encounter similar incidents with our

customers. Such incidents could result in customer disputes, damage to our brand and reputation, legal claims

against us, and financial liabilities, any of which could adversely affect our business.

***A temporary or permanent blockchain "fork" to any supported crypto asset could adversely affect our business.***

Blockchain protocols, including Bitcoin and Ethereum, are open source. Any user can download the

software, modify it, and then propose that Bitcoin, Ethereum or other blockchain protocols users and miners adopt

the modification. When a modification is introduced and a substantial majority of users and miners consent to the

modification, the change is implemented and the Bitcoin, Ethereum or other blockchain protocol networks, as

applicable, remain uninterrupted. However, if less than a substantial majority of users and miners consent to the

proposed modification, and the modification is not compatible with the software prior to its modification, the

consequence is called a "fork" (i.e., "split") of the impacted blockchain protocol network and respective blockchain,

with one prong running the pre-modified software and the other running the modified software. The effect of a fork

is the existence of two parallel versions of the Bitcoin, Ethereum or other blockchain protocol network, as

applicable, running simultaneously, but with each split network's crypto asset lacking interchangeability.

Both Bitcoin and Ethereum protocols have been subject to "forks" that resulted in the creation of new

networks, including Bitcoin Cash ABC, Bitcoin Cash SV, Bitcoin Diamond, Bitcoin Gold, Ethereum Classic, and

others. Some of these forks have caused fragmentation among platforms as to the correct naming convention for

forked crypto assets. Due to the lack of a central registry or rulemaking body, no single entity has the ability to

dictate the nomenclature of forked crypto assets, causing disagreements and a lack of uniformity among platforms

on the nomenclature of forked crypto assets, and which results in further confusion to users as to the nature of assets

they hold on platforms. In addition, several of these forks were contentious and, as a result, participants in certain

communities may harbor ill will towards other communities. As a result, certain community members may take

actions that adversely impact the use, adoption, and price of Bitcoin, Ethereum, or any of their forked alternatives.

Hard forks can also lead to new security concerns. For instance, when the Ethereum and Ethereum Classic

networks split in July 2016, replay attacks, in which transactions from one network were rebroadcast on the other

network to achieve "double-spending," plagued platforms that traded Ethereum through at least October 2016,

resulting in significant losses to some crypto asset platforms. Similar replay attacks occurred in connection with the

Bitcoin Cash and Bitcoin Cash SV network split in November 2018. Another possible result of a hard fork is an

inherent decrease in the level of security due to the splitting of some mining power across networks, making it easier

for a malicious actor to exceed 50% of the mining power of that network, thereby making crypto assets that rely on

proof-of-work more susceptible to attack, as occurred with Ethereum Classic.

We do not believe that we are required to support any fork or provide the benefit of any forked crypto asset

to our customers. However, we have in the past and may in the future continue to be subject to claims by customers

arguing that they are entitled to receive certain forked or airdropped crypto assets by virtue of crypto assets that they

hold with us. If any customers succeed on a claim that they are entitled to receive the benefits of a forked or

airdropped crypto asset that we do not or are unable to support, we may be required to pay significant damages, fines

or other fees to compensate customers for their losses.

Forks may occur at any time. A fork can lead to a disruption of networks and our information technology

systems, cybersecurity attacks, replay attacks, or security weaknesses, any of which can further lead to temporary or

even permanent loss of our and our customers' assets. Such disruption and loss could cause us to be exposed to

liability, even in circumstances where we have no intention of supporting an asset compromised by a fork.

***We currently support, and expect to continue to support, certain smart contract-based crypto assets. If the***

***underlying smart contracts for these crypto assets do not operate as expected, they could lose value and our***

***business could be adversely affected.***

We currently support, and expect to continue to support, various crypto assets that represent units of value

on smart contracts deployed on a third party blockchain. Smart contracts are programs that store and transfer value

and execute automatically when certain conditions are met. Since smart contracts typically cannot be stopped or

reversed, vulnerabilities in their programming and design can have damaging effects. For instance, in April 2018, a

batch overflow bug was found in many Ethereum-based ERC20-compatible smart contract tokens that allowed

hackers to create a large number of smart contract tokens, causing multiple crypto asset platforms worldwide to shut

down ERC20-compatible token trading. Similarly, in March 2020, a design flaw in the MakerDAO smart contract

caused forced liquidations of crypto assets at significantly discounted prices, resulting in millions of dollars of losses

to users who had deposited crypto assets into the smart contract. If any such vulnerabilities or flaws come to fruition,

smart contract-based crypto assets, including those held by us for our customers, may be affected by negative

publicity, be exposed to security vulnerabilities, decline significantly in value, and lose liquidity over a short period

of time.

In some cases, smart contracts can be controlled by one or more "admin keys" or users with special

privileges, or "super users." These users have the ability unilaterally to make changes to the smart contract, enable or

disable features on the smart contract, change how the smart contract receives external inputs and data, and make

other changes to the smart contract. For smart contracts that hold a pool of reserves, these users may also be able to

extract funds from the pool, liquidate assets held in the pool, or take other actions that decrease the value of the

assets held by the smart contract in reserves. Even for crypto assets that have adopted a decentralized governance

mechanism, such as smart contracts that are governed by the holders of a governance token, such governance tokens

can be concentrated in the hands of a small group of core community members, who would be able to make similar

changes unilaterally to the smart contract. If any such super user or group of core members unilaterally make

adverse changes to a smart contract, the design, functionality, features and value of the smart contract, and its related

crypto assets, may be harmed. In addition, assets held by the smart contract in reserves may be stolen, misused,

burnt, locked up or otherwise become unusable and irrecoverable. These super users can also become targets of

hackers and malicious attackers. If an attacker is able to access or obtain the super user privileges of a smart

contract, or if a smart contract's super-users or core community members take actions that adversely affect the smart

contract, our customers who hold and transact in the affected crypto assets may experience decreased functionality

and value of the applicable crypto assets, up to and including a total loss of the value of such crypto assets. Although

we do not control these smart contracts, any such events could cause customers to seek damages against us for their

losses, result in reputational damage to us, or in other ways adversely impact our business.

***From time to time, we may encounter technical issues in connection with the integration of supported crypto***

***assets and changes and upgrades to their underlying networks, which could adversely affect our business.***

In order to support any crypto asset, a variety of front and back-end technical and development work is

required to implement our wallet, custody, trading, and other solutions for our customers, and to integrate such

supported crypto asset with our existing technical infrastructure. For certain crypto assets, a significant amount of

development work is required and there is no guarantee that we will be able to support successfully any existing or

future crypto asset. In addition, such integration may introduce software errors or weaknesses into our crypto asset

platforms, including our existing infrastructure. Even if such integration is initially successful, any number of

technical changes, software upgrades, soft or hard forks, cybersecurity incidents, or other changes to the underlying

blockchain network may occur from time to time, causing incompatibility, technical issues, disruptions, or security

weaknesses to our platforms and technical infrastructure. If we are unable to identify, troubleshoot and resolve any

such issues successfully, we may no longer be able to support such crypto asset, our customers' assets may be frozen

or lost, the security of our hot, warm, or cold wallets may be compromised, and our platforms and technical

infrastructure may be affected, all of which could adversely impact our business.

***If miners or validators of any supported crypto asset demand high transaction fees, our operating results may be***

***adversely affected.***

We charge miner fees when a customer sends certain crypto assets from their Coincheck account to a non-

Coincheck account. We estimate the miner fee based on the cost that we will incur to process the withdrawal

transaction on the underlying blockchain network. We also pay miner fees when we move crypto assets for various

operational purposes, such as when we transfer crypto assets between our hot and cold wallets, for which we do not

charge our customers. Miner fees can be unpredictable. For instance, in 2021, Bitcoin miner fees increased from

approximately $10 per transaction in January 2021 to over $60 per transaction in April 2021 and again to over $120

per transaction in April 2024. Even though Bitcoin's miner fees have since decreased, if the block rewards for

miners on any blockchain network are not sufficiently high to incentivize miners, miners may demand higher

transaction fees, or collude to reject low transaction fees and force users to pay higher fees. Although we generally

attempt to pass miner fees relating to customer withdrawals through to our customers, we have in the past incurred,

and expect to incur from time to time, losses associated with the payment of miner fees in excess of what we charge

our customers, resulting in adverse impact on our operating results.

***The nature of our business requires the application of complex financial accounting and tax rules relating to***

***crypto assets transactions, crypto assets and crypto-related revenue, and there is limited guidance from***

***accounting standard setting bodies and taxing authorities. If financial accounting standards undergo significant***

***changes or taxing authorities announce new tax rules, our operating results could be adversely affected.***

The accounting rules and regulations that we must comply with are complex and subject to interpretation

by the IFRS Foundation and various bodies formed to promulgate and interpret appropriate accounting principles. A

change in these principles or interpretations could have a significant effect on our reported financial results and may

even affect the reporting of transactions completed before the announcement or effectiveness of a change. In

addition, there has been limited precedent for the financial accounting of crypto assets and related valuation and

revenue recognition standards. As such, there remains significant uncertainty on how companies should account for

crypto assets transactions, crypto assets and related revenue. There has been limited guidance from taxing authorities

on treatment of crypto assets and revenue therefrom. Japanese tax audits or changes in the tax treatment of our

business could result in the imposition of significant additional taxes. Uncertainties in or changes to regulatory or

financial accounting standards could result in the need to change our accounting methods and restate our financial

statements and impair our ability to provide timely and accurate financial information, which could adversely affect

our financial statements, result in a loss of investor confidence, and more generally impact our business, operating

results, and financial condition.

***We obtain and process a large amount of sensitive customer data. Any real or perceived improper use of,***

***disclosure of, or access to such data could harm our reputation, result in liability claims and regulatory***

***enforcement actions and otherwise have an adverse effect on our business.***

We obtain and process large amounts of sensitive data, including personal data related to our customers and

their transactions, such as their names, addresses, copies of government-issued identification, trading data, tax

identification, and bank account information. We face risks, including to our reputation, in the handling and

protection of this data, and these risks will increase if our business continues to expand. In addition, Japanese laws

and regulations, such as the Act on the Protection of Personal Information ("APPI"), governing privacy and data

protection require us to safeguard our customers', employees', and service providers' personal data and other

important information. If we fail to comply with the regulations under the APPI, we may face recommendation and

order from the Personal Information Protection Commission and be liable for fines.

We have administrative, technical, and physical security measures and controls in place and believe we

maintain a robust information security program. However, our security measures may be inadequate or breached as a

result of third-party action, employee or service provider error, malfeasance, malware, phishing, hacking attacks,

system error, trickery, advances in computer capabilities, new discoveries in the field of cryptography, inadequate

facility security or otherwise, and, as a result, someone may be able to obtain unauthorized access to sensitive

information, including personal data, on our systems. Additionally, our customers have been and could in the future

be targeted in cybersecurity incidents like an account takeover, which could result in harm to our reputation and

financial losses. Additionally, privacy and data protection laws are evolving, and it is possible that these laws may

be interpreted and applied in a manner that is inconsistent with our data handling safeguards and practices that could

result in fines, lawsuits, and other penalties, and significant changes to our or our vendors' or other service

providers' business practices, products and service offerings.

**Risks Relating to Third Parties**

***We currently rely on third-party service providers for certain aspects of our operations, and any interruptions in***

***services provided by these third parties may impair our ability to support our customers.***

We rely on third parties in connection with many aspects of our business, including payment processors,

banks, and payment gateways to process transactions; cloud computing services and data centers that provide

facilities, infrastructure, website functionality and access, components, and services, including databases and data

center facilities and cloud computing; and third parties that provide outsourced customer service, compliance

support and product development functions which are critical to our operations. Because we rely on third parties to

provide these services and to facilitate certain of our business activities, we face increased operational risks. We do

not control the operation of any of these third parties, including the data center facilities we use. These third parties

may be subject to financial, legal, regulatory, and labor issues, cybersecurity incidents, break-ins, computer viruses,

denial-of-service attacks, sabotage, acts of vandalism, privacy breaches, service terminations, disruptions,

interruptions, and other misconduct. They are also vulnerable to damage or interruption from human error, power

loss, telecommunications failures, fires, floods, earthquakes, hurricanes, tornadoes, pandemics (like the COVID-19

pandemic) and similar events. There can be no assurance that third parties that provide services to us or to our

customers on our behalf will continue to do so on acceptable terms, or at all. If any third parties do not adequately or

appropriately provide their services or perform their responsibilities to us or our customers on our behalf, such as if

third-party service providers were to close their data center facilities without adequate notice, are unable to restore

operations and data, fail to perform as expected, or experience other unanticipated problems, we may be unable to

procure alternatives in a timely and efficient manner and on acceptable terms, or at all, and we may be subject to

business disruptions, losses or costs to remediate any of the deficiencies, customer dissatisfaction, reputational

damage, legal or regulatory proceedings, or other adverse consequences which could harm our business.

In addition, we are continually improving and upgrading our information systems and technologies.

Implementation of new systems and technologies is complex, expensive, time-consuming, and may not be

successful. If we fail to timely and successfully implement new information systems and technologies, or

improvements or upgrades to existing information systems and technologies, or if such systems and technologies do

not operate as intended, it could have an adverse impact on our business, internal controls (including internal

controls over financial reporting), operating results, and financial condition.

***Our current and future services are dependent on payment networks and acquiring processors, and any changes***

***to their rules or practices could adversely impact our business.***

We rely on banks and other payment processors to process customers' payments in connection with the

purchase of crypto assets on our cryptocurrency exchanges and we pay these providers fees for their services. From

time to time, payment networks have increased, and may increase in the future, the interchange fees and assessments

that they charge for transactions that use their networks. Payment networks have imposed, and may impose in the

future, special fees on the purchase of crypto assets, including on our cryptocurrency exchanges, which could

significantly increase our costs. We could attempt to pass these increases along to our customers, but this strategy

might result in the loss of customers to our competitors who may not also pass along the increases, thereby reducing

our total revenue and earnings.

We may also be directly or indirectly liable to the bank or other payment processor for rule violations, or

they may refuse to do business, or continue to do business, with us if they believe we have committed rule

violations. Banks and other payment processors set and interpret their network operating rules, including the level of

sufficient compliance by the crypto firm with the "travel rule" that has been enacted to support anti-money

laundering laws and regulations. See subsections about anti-money laundering and the "travel rule" in "Information

About the Company – Regulatory Environment." The vendor we use, considered an industry standard and used by

many crypto firms, to provide the technology services that enable tracking of transactions to comply with the travel

rule does not support, or fully support, certain cryptocurrencies we offer. If a bank or other payment processor is not

satisfied with our level of compliance, as we have been advised from time to time they may not be, we may be

required to change to another bank or payment processor, if possible, or alter our product offering or business

practices, which may be costly or otherwise adversely affect our business. They could also adopt new operating

rules or standards or interpret or reinterpret existing rules that we might find difficult or even impossible to follow,

or costly to implement.

***Our success depends in part upon continued distribution through app stores and effective operation with mobile***

***operating systems, networks, technologies, products, hardware and standards that we do not control.***

A substantial majority of our customers' activity on our cryptocurrency exchanges occurs on mobile

devices. There is no guarantee that popular mobile devices will remain compatible with the Coincheck app. We are

dependent on the interoperability of our app with popular mobile operating systems, networks, technologies,

products, hardware and standards that we do not control, such as the Android and iOS operating systems. Any

changes, bugs or technical issues in such systems, or changes in our or our customers' relationships with mobile

operating system providers, device manufacturers or mobile carriers, or in their terms of service or policies, that

degrade the functionality of our app, reduce or eliminate our ability to distribute applications, give preferential

treatment to competitive products, limit our ability to target or measure the effectiveness of applications, raise prices,

or impose fees or other charges related to the delivery of our application, could adversely affect customer usage of

the Coincheck app.

We are also subject to the standard policies and terms of service of these operating systems, as well as

policies and terms of service of the various application stores that make our application and experiences available to

our developers, creators and customers. These policies and terms of service govern the availability, promotion,

distribution, content and operation generally of applications and experiences on such operating systems and stores.

Each provider of these operating systems and stores has broad discretion to change and interpret its terms of service

and policies with respect to our cryptocurrency exchanges and those changes may be unfavorable to us and our

developers', creators' and customers' use of our cryptocurrency exchanges. If we were to violate, or an operating

system provider or application store believes that we have violated, its terms of service or policies, that operating

system provider or application store could limit or discontinue our access to its operating system or store. In some

cases these requirements might not be clear or our interpretation of the requirements might not align with the

interpretation of the operating system provider or application store, which could lead to inconsistent enforcement of

these terms of service or policies against us, and could also result in the operating system provider or application

store limiting or discontinuing access to its operating system or store. Any limitation or discontinuation of our access

to any third-party platform or application store could adversely affect our business, financial condition or results of

operations.

Additionally, in order to deliver a high-quality mobile experience for our customers, it is important that our

products and services work well with a range of mobile technologies, products, systems, networks, hardware and

standards that we do not control. We might not be successful in developing products that operate effectively with

these technologies, products, systems, networks or standards. In the event that it is more difficult for our customers

to access and use our app, or if our customers choose not to access or use our app on their mobile devices or use

mobile products that do not offer access to our app, our customer growth, retention and engagement could be

harmed.

***We are exposed to credit risks due to our reliance on cryptocurrency exchange brokers, which may cause us to***

***incur financial or reputational harm.***

We are exposed to certain credit risks due to our reliance on third-party cryptocurrency exchange brokers

with whom we execute cover transactions to hedge our exposure to specific crypto assets. Our counterparties in our

hedging transactions (which we refer to as our cover counterparties) are composed of a relatively small number of

financial institutions and cryptocurrency exchange brokers. We borrow crypto assets from our customers and, in

order to be able to hedge by executing cover transactions, hold a portion of those borrowed crypto assets in our

accounts with such cryptocurrency exchange brokers. 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 December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023,

December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of** <br>**December 31,** <br>**2022** | **As of** <br>**March 31,** <br>**2023** | **As of** <br>**June 30,** <br>**2023** | **As of** <br>**September 30,** <br>**2023** | **As of** <br>**December 31,** <br>**2023** | **As of** <br>**March 31,** <br>**2024** | **As of** <br>**June 30,** <br>**2024** | **As of** <br>**September 30,** <br>**2024** | **As of** <br>**December 31,** <br>**2024** | **As of** <br>**March 31,** <br>**2025** |
|  | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** | **(in millions of yen except for percentage figures)** |  |
| Amount deposited <br>with OKX<br>| ¥58 | ¥647 | ¥92 | ¥88 | ¥148 | ¥27 | ¥0 | ¥0 | ¥0 | ¥0 |
| Amount deposited <br>with bitFlyer<br>| 216 | 195 | 213 | 101 | 389 | 581 | 214 | 229 | 398 | 211 |
| Amount deposited <br>with Binance<br>| 74 | 195 | 48 | 62 | 137 | 206 | 142 | 142 | 300 | 129 |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Amount deposited <br>with Bittrex<br>| 77 | 50 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6 |
| Amount deposited <br>with B2C2<br>| 0 | 0 | 0 | 0 | 0 | 3 | 3 | 15 | 17 | 0 |
| Amount deposited <br>with <br>Wintermute<br>| 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22 | 17 | 24 |
| Amount deposited <br>with all of our <br>cover <br>counterparties<br>| 425 | 1088 | 354 | 251 | 674 | 817 | 359 | 409 | 732 | 370 |
| % of total <br>equity<sup>(1)</sup><br>| 4.0% | 10.4% | 3.5% | 2.5% | 6.4% | 6.6% | 2.8% | 3.2% | 8.2% | 2.5% |
| Total equity | 10537 | 10477 | 10207 | 10095 | 10492 | 12444 | 12881 | 12896 | 8965 | 15056 |
| Cash and cash <br>equivalents<br>| ¥8,826 | ¥7,697 | ¥7,579 | ¥7,581 | ¥8,866 | ¥10,837 | ¥11,510 | ¥10,628 | ¥12,673 | 8389 |

---

____________

<sup>(1)</sup> The % of total equity = Amount deposited with all of our cover counterparties/Total equity.

We have not suffered credit losses with respect to our counterparties to date, but there can be no assurance

that any risk limitation measures we take will prove to be effective and there is a possibility that sudden changes in

market conditions could lead to such counterparties having their credit rating downgraded, becoming insolvent or

otherwise becoming unable to fulfill their obligations to us, which could have an adverse effect on our customers,

business, reputation and results of operations.

**Risks Relating to Intellectual Property**

***Our intellectual property rights are valuable, and an inability to protect them could adversely impact our***

***business, operating results, and financial condition.***

Our business depends in large part on our proprietary technology and our brand. We rely on, and expect to

continue to rely on, a combination of trademark, trade dress, domain name, copyright and trade secret and laws, as

well as confidentiality and license agreements with our employees, contractors, consultants and third parties with

whom we have relationships, to establish and protect our brand and other intellectual property rights. However, our

efforts to protect our intellectual property rights may not be sufficient or effective. Our proprietary technology and

trade secrets could be lost through misappropriation or breach of our confidentiality and license agreements, or (with

respect to proprietary technology) reverse engineering, and any of our intellectual property rights may be

challenged, which could result in them being narrowed in scope or declared invalid or unenforceable. There can be

no assurance that our intellectual property rights will be sufficient to protect against others offering products,

services, or technologies that are substantially similar to ours and that compete with our business.

***We may be subject to claims for alleged infringement of proprietary rights of third parties.***

In recent years, there has been considerable patent, copyright, trademark, domain name, trade secret and

other intellectual property development activity related to crypto assets, as well as litigation, based on allegations of

infringement or other violations of intellectual property. Our use of third-party intellectual property rights also may

be subject to claims of infringement or misappropriation. We cannot guarantee that our internally developed or

acquired or licensed technologies and content do not or will not infringe the intellectual property rights of others.

From time to time, our competitors or other third parties may claim that we are infringing upon or misappropriating

their intellectual property rights, and we may be found to be infringing upon such rights. Any claims or litigation

could cause us to incur significant expenses and, if successfully asserted against us, could require that we pay

substantial damages or ongoing royalty payments, prevent us from offering our products or services or using certain

technologies, force us to implement expensive work-arounds, or impose other unfavorable terms or consequences.

We expect that the occurrence of infringement claims is likely to grow as the market for crypto assets grows and

matures. Even if intellectual property claims do not result in litigation or are resolved in our favor, these claims, and

the time and resources necessary to resolve them, could divert the resources of our management and require

significant expenditures. Any of the foregoing could prevent us from competing effectively and could have an

adverse effect on our business, operating results, and financial condition.

***Our platforms and systems contain third-party open source software components, and failure to comply with the***

***terms of the underlying open source software licenses could harm our business.***

Our platforms and systems contain software modules licensed to us by third-party authors under "open

source" licenses. We also make certain of our own software available to users for free under various open source

licenses. Use and distribution of open source software may entail greater risks than use of third-party commercial

software, as open source licensors generally do not provide support, warranties, indemnification or other contractual

protections regarding infringement claims or the quality of the code. In addition, the use of open source software

presents the risk of added security vulnerability because the public availability of such software may make it easier

for others to compromise our platforms and systems.

Some open source licenses contain requirements that we make available derivative works we create based

upon the open source software we used, meaning that if we combine our proprietary software with open source

software in a certain manner, we could, under certain open source licenses, be required to release the source code of

our proprietary software to the public. This would allow our competitors to create similar offerings with lower

development effort and time and ultimately could impair a competitive advantage that our proprietary software had

given us. Or, to avoid the public release of the affected portions of our source code, we could be required to expend

substantial time and resources to re-engineer some or all of our software.

Although we have recently (in May 2025) conducted an inventory and review of our use of open source

software and did not identify any material issues of concern, we cannot assure you that our processes for controlling

our use of open source software in our platforms and systems are, or will be, effective. If we are held to have

breached or failed to fully comply with all the terms and conditions of an open source software license, we could

face litigation, infringement or other liability, or be required to seek costly licenses from third parties to continue

providing our offerings on terms that are not economically feasible, to re-engineer our software, to discontinue or

delay the provision of our offerings if re-engineering could not be accomplished on a timely basis, or to make

generally available, in source code form, our proprietary code, any of which could adversely affect our business,

operating results, and financial condition. Moreover, the terms of many open source licenses have not been

interpreted by domestic or foreign courts. As a result, there is a risk that these licenses could be construed in a way

that could impose unanticipated conditions or restrictions on our ability to provide or distribute our product and

service offerings.

**Risks Relating to Our Employees** 

***The loss of one or more of our key personnel, or our failure to attract and retain other highly qualified personnel***

***in the future, could adversely impact our business, operating results, and financial condition.***

We operate in an industry that is not widely understood and requires personnel with specialized knowledge

and technical skills. We believe that our future success is highly dependent on the talents and contributions of our

senior management team, members of our executive team, and other key employees in areas including systems

design and engineering, risk management, finance, compliance and legal, and marketing. Our future success depends

on our ability to attract, develop, motivate, and retain highly qualified and skilled employees. Due to the relatively

recent emergence of markets for crypto assets, the pool of qualified talent is extremely limited, particularly with

respect to executive talent, systems engineering, risk management, and financial regulatory expertise. We face

intense competition for qualified individuals from numerous software and other technology companies. To attract

and retain key personnel, we incur significant costs, including salaries and benefits and equity incentives. Even so,

these measures may not be enough to attract and retain the personnel we require to operate our business effectively.

The loss of even a few qualified employees, or an inability to attract, retain and motivate additional highly skilled

employees required for the operation of our business, could adversely impact our operating results and impair our

ability to grow.

***In the event of employee or similar service provider misconduct or error, our business may be adversely impacted.***

Employee or similar service provider (if not technically an employee, such as an individual contractor,

consultant, adviser or agent) misconduct or error could subject us to legal liability, financial losses, and regulatory

sanctions and could seriously harm our reputation and negatively affect our business. Such misconduct could include

engaging in improper or unauthorized transactions or activities, misappropriation of customer funds, failing to

supervise other employees or service providers, compliance or harassment violations by our employees and

improperly using confidential information. Human error, including mistakes in executing, recording, or processing

transactions for customers, could expose us to the risk of material losses, even if the mistakes are detected. Although

we have implemented processes and procedures and provide training to our employees and similar service providers

to reduce the likelihood of misconduct and error, these efforts may not be successful. Moreover, the risk of error

may be greater for novel products and services because the rapid pace of development of markets for crypto assets

and related regulatory frameworks can create a high risk of confusion with respect to compliance obligations, such

as those relating to confidentiality, data protection, data access, trading, and conflicts of interest. It is not always

possible to deter violative or inappropriate conduct (whether unintentional, or due to carelessness or reckless or

intentional behavior), and the precautions we take to prevent and detect inappropriate activity may not be effective

in all cases. If we were found to have not met our regulatory oversight and compliance and other obligations,

including supervision of employees, we could be subject to regulatory sanctions, financial penalties, and restrictions

on our activities for failure to properly identify, monitor and respond to potentially problematic activity, which can

seriously damage our reputation. Our employees, contractors and agents could also commit errors that subject us to

financial claims for negligence, as well as regulatory actions, or otherwise result in financial liability.

**Risks Relating to Our Ordinary Shares** 

***Fluctuations in the price of our Ordinary Shares could contribute to the loss of all or part of your investment.***

Fluctuations in the price of our Ordinary Shares could contribute to the loss of all or part of your

investment. The trading price of our Ordinary Shares has been, and may continue to be, volatile and subject to wide

fluctuations in response to various factors, some of which are beyond our control. Any of the factors listed below

could have an adverse effect on your investment in our Ordinary Shares and our Ordinary Shares may trade at prices

significantly below the price you paid for them. In such a circumstance, the trading price of our Ordinary Shares

may not recover and may experience a further decline.

Factors affecting the trading price of our Ordinary Shares may include:

• actual or anticipated fluctuations in our quarterly financial results or the quarterly financial results of

companies perceived to be similar to us;

• the volume of our Ordinary Shares available for public sale;

• changes in the market's expectations about our operating results;

• success of competitors;

• our operating results failing to meet the expectation of securities analysts or investors in a particular

period;

• changes in financial estimates and recommendations by securities analysts concerning our company or

the industry in which we operate;

• operating and share price performance of other companies that investors deem comparable to us;

• our ability to market new and enhanced products and technologies on a timely basis;

• changes in laws and regulations affecting our business;

• our ability to meet compliance requirements;

• commencement of, or involvement in, litigation involving us;

• changes in our capital structure, such as future issuances of securities or the incurrence of additional

debt;

• any major change in our Board of Directors or management;

• sales of substantial amounts of our Ordinary Shares by our directors, executive officers or significant

shareholders or the perception that such sales could or may occur; and

• general economic and political conditions such as recessions, interest rate changes, international

currency fluctuations, and acts of war or terrorism.

Broad market and industry factors may materially harm the market price of our Ordinary Shares

irrespective of our operating performance. The stock market in general, and Nasdaq in particular, have experienced

price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of the

particular companies affected. The trading prices and valuations of these stocks, and of our Ordinary Shares, are not

predictable. A loss of investor confidence in the market for retail stocks or the stocks of other companies which

investors perceive to be similar to us could depress our share price regardless of our business, prospects, financial

condition or results of operations. A decline in the market price of our Ordinary Shares also could adversely affect

our ability to issue additional securities and our ability to obtain additional financing in the future.

***There may not be an active trading market for our Ordinary Shares, which would adversely affect the liquidity***

***and price of our securities and make it difficult for you to sell our Ordinary Shares, and may also make it difficult***

***for us to make acquisitions we find attractive.***

Prior to the consummation of the Business Combination there was not a public trading market for our

Ordinary Shares, and following the closing of the Business Combination and the listing of our Ordinary Shares on

Nasdaq the volume of our Ordinary Shares available for public sale has been relatively small, and generally there

has been less than 100,000 shares traded per day. If we are unable to create a more liquid market for our Ordinary

Shares, through another primary offering (which can be dilutive and the ability of which to complete is largely

controlled by capital market conditions and demand) or other means, our share price may remain volatile, or may

decline, there may be limited interest in our Ordinary Shares by institutional and sophisticated investors, analysts

may not have or lose interest in covering us, and potential acquisition targets may not be comfortable receiving our

Ordinary Shares as consideration, which could materially impede our ability to make acquisitions we find attractive

on favorable terms, or at all. It is possible that a more active trading market for our Ordinary Shares will not

develop in the foreseeable future, or at all.

***Future sales of our Ordinary Shares or the anticipation of future sales could reduce the market price of our***

***Ordinary Shares.***

Sales of a substantial number of our Ordinary Shares in the public market, or the perception in the market

that the holders of a large number of shares intend to sell shares, could reduce the market price of our Ordinary

Shares and could impair our ability to raise capital through the sale of additional equity securities. As of March 31,

2025, we have 130,814,526 Ordinary Shares issued and outstanding.

On March 27, 2025, pursuant to rights held by certain of our securityholders, we filed a registration

statement relating to (i) the resale of up to 126,913,201 Ordinary Shares held by such holders, including up to

129,611 Ordinary Shares issuable upon the exercise of the Private Warrants, which will generally permit them to sell

such shares from time to time, subject to any applicable contractual or legal restrictions, and (ii) the issuance of up to

4,730,537 Ordinary Shares issuable upon the exercise of the Public Warrants. The Ordinary Shares that can be

offered for resale, pursuant to the prospectus dated April 8, 2025, represents approximately 97% of our total

outstanding Ordinary Shares on a fully diluted basis (assuming and after giving effect to the issuance of Ordinary

Shares upon exercise of all outstanding Warrants). During the time that such registration statement remains

effective, the selling securityholders will be permitted (subject to compliance with the contractual lock-up

restrictions that apply to certain selling securityholders) to sell the shares registered thereby. The resale, or

anticipated or potential resale, of a substantial number of our Ordinary Shares may have a material negative impact

on the market price of our Ordinary Shares and could make it more difficult for our shareholders to sell their

Ordinary Shares at such times and at such prices they deem desirable. Additionally, even if the price of our Ordinary

Shares declines substantially, some selling securityholders may still have an incentive to sell to obtain liquidity for

themselves.

***We may issue additional Ordinary Shares or other equity securities, which would dilute your ownership interests***

***and may depress the market price of our Ordinary Shares.***

We may issue additional Ordinary Shares or other equity securities of equal or senior rank in the future in

connection with, among other things, financings, future acquisitions, repayment of outstanding indebtedness,

employee benefit plans and exercises of outstanding options, warrants and other convertible securities, in a number

of circumstances.

Our issuance of additional Ordinary Shares or other equity securities of equal or senior rank would have the

following effects:

• your proportionate ownership interest in our company will decrease;

• the amount of cash available per share, including for payment of dividends (if any) in the future, may

decrease;

• the relative voting strength of your shares may be diminished; and

• the market price of our Ordinary Shares may decline.

***Our largest shareholder, Monex, continues to exercise supermajority control over us and may have interests that***

***differ from or conflict with ours.***

As of the date of this report, Monex Group, Inc. holds in the aggregate over 80% of our Ordinary Shares

outstanding. Accordingly, Monex exercises control, including veto rights, over all fundamental decisions that

require shareholder approval, such as the approval of mergers or other business combination transactions, the sale of

businesses and amendments to our Articles of Association. As a result, Monex generally has the power to prevent or

delay a change of control or other transactions that you may believe would be beneficial to our shareholders, and this

may also prevent or discourage shareholder initiatives aimed at changing our management or strategy or otherwise

exerting influence over us. Monex, itself a publicly traded company in Japan, will exercise its voting power in its

own interest, which may not be in line, or may be in conflict with, the interests of the remaining shareholders.

***We incur significant increased expenses and administrative burdens as a public company, which could have an***

***adverse effect on our business, financial condition and results of operations.***

We face increased legal, accounting, administrative, director and officer insurance liability, and other costs

and expenses as a public company (we became a public company on December 11, 2024) that Coincheck, Inc. did

not incur as a private company. The Sarbanes-Oxley Act, including the requirements of Section 404 thereof, as well

as rules and regulations of the SEC, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the

PCAOB and the securities exchanges, impose additional reporting and other obligations on public companies.

Compliance with public company requirements increase costs and make certain activities more time-consuming. The

additional reporting and other obligations imposed by these rules and regulations increase legal and financial

compliance costs and the costs of related legal, accounting and administrative activities. These increased costs

require us to divert a significant amount of money that could otherwise be used to expand the business and achieve

strategic objectives. Advocacy efforts by shareholders and third parties may also prompt additional changes in

governance and reporting requirements, which could further increase costs.

***If we fail to maintain effective internal control over financial reporting, the price of our Ordinary Shares may be***

***adversely affected.***

We are required to establish and maintain appropriate internal control over financial reporting. Failure to

establish those controls, or any failure of those controls once established, could adversely affect our public

disclosures regarding our business, financial condition or results of operations. In addition, management's

assessment of internal control over financial reporting may identify weaknesses and conditions that need to be

addressed in our internal control over financial reporting, or other matters that may raise concerns for investors. Any

actual or perceived weaknesses and conditions that need to be addressed in our internal control over financial

reporting, or disclosure of management's assessment of our internal control over financial reporting, may have an

adverse impact on the price of our Ordinary Shares.

Our management is responsible for establishing and maintaining adequate internal control over financial

reporting designed to provide reasonable assurance regarding the reliability of financial reporting and the

preparation of financial statements for external purposes in accordance with IFRS. We are required to comply with

the management certification requirements of the Sarbanes-Oxley Act of 2002 ("SOX") in this report, which is our

first annual report filed with the SEC, and we will be required to include management's annual report on internal

control over financial reporting in our annual reports on Form 20-F, pursuant to Section 404(a) of SOX,

commencing with the report for the year ending March 31, 2026. If we cease to be a non-accelerated filer under

SOX (market value of shares held by non-affiliates, or "public float," under $75 million), we would then be required

to comply with Section 404(b) of SOX (provide an auditor's attestation report to management's annual report on

internal control over financial reporting) in our annual reports on Form 20-F. As a public company, we will be

required to report, among other things, control deficiencies that constitute a "material weakness" or changes in

internal controls that, or that are reasonably likely to, materially affect internal controls over financial reporting. A

"material weakness" is a deficiency, or a combination of deficiencies, in internal control over financial reporting,

such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements

will not be prevented or detected on a timely basis. A "significant deficiency" is a deficiency, or a combination of

deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important

enough to merit attention by those responsible for oversight of our financial reporting.

In connection with the preparation of our consolidated financial statements for the year ended March 31,

2023, we identified a material error related to the accounting for Marketplace transaction revenue recognition and

therefore restated our financial statements for the years ended March 31, 2021 and 2022. We had reconsidered

during our fiscal year ended March 31, 2023 our accounting policy for Marketplace platform transactions, and

reconsideration of the policy for revenue recognition was determined appropriate based upon the development of

interpretive guidance across the blockchain and digital asset industry, as well as information obtained from

conversations with our auditors, third-party consultants, and other relevant parties. Based on this reconsideration, we

determined that use of the former accounting policy had resulted in a material misstatement of Coincheck's

marketplace transaction revenue and costs of sales for the years ended March 31, 2021 and 2022, which required our

restatement. We applied the corrected accounting policy for transaction revenue recognition in our audited financial

statements for the year ended March 31, 2023, and have continued to do so thereafter, including for this report.

Management has concluded that, even though the corrected accounting policy for transaction revenue recognition

has been applied beginning with our year-end financial statements for the year ended March 31, 2023, the material

weakness has not been completely remediated. Management's remediation program, which includes actively

monitoring and staying informed of the latest accounting practices related to crypto assets among SEC registrants,

has not been completed and operating for a sufficient period of time while we have been a publicly traded company

(i.e., since December 11, 2024), and therefore our internal control over financial reporting was not effective in this

regard as of March 31, 2025. We intend to complete the remediation process during our current fiscal year, but we

cannot provide assurances that we will be successful or prevent additional material weaknesses or significant

deficiencies in our internal controls over financial reporting in the future.

***We qualify as a foreign private issuer (FPI) within the meaning of the rules under the Exchange Act, and as such***

***we are exempt from certain provisions applicable to United States domestic public companies.***

Because we qualify as a foreign private issuer under the Exchange Act, we are exempt from certain

provisions of the securities rules and regulations in the United States that are applicable to U.S. domestic issuers,

including: (i) the rules under the Exchange Act requiring the filing of quarterly reports on Form 10-Q or current

reports on Form 8-K with the SEC; (ii) the sections of the Exchange Act regulating the solicitation of proxies,

consents, or authorizations in respect of a security registered under the Exchange Act; (iii) the sections of the

Exchange Act requiring insiders to file public reports of their share ownership and trading activities and liability for

insiders who profit from trades made in a short period of time; and (iv) the selective disclosure rules by issuers of

material nonpublic information under Regulation FD.

We are required to file an annual report on Form 20-F within four months of the end of each fiscal year. In

addition, we currently publish our results on a quarterly basis through press releases, distributed pursuant to the rules

and regulations of Nasdaq. Press releases relating to financial results and material events are also furnished to the

SEC on Form 6-K. However, the information we are required to file with or furnish to the SEC is less extensive and

less timely compared to that required to be filed with the SEC by U.S. domestic issuers. Accordingly, if you hold our

securities, you may receive less or different information about us, and at different times, than that you would receive

about a U.S. domestic public company.

We could lose our status as a foreign private issuer under current SEC rules and regulations if more than

50% of our outstanding voting securities become directly or indirectly held of record by U.S. Holders and any one of

the following is true: (i) the majority of our directors or executive officers are U.S. citizens or residents; (ii) more

than 50% of our assets are located in the United States; or (iii) our business is administered principally in the

United States.

Also, in June 2025 the SEC issued a concept release soliciting public comment on potential changes to the

definition of a Foreign Private Issuer (FPI). This release is the first review of the FPI framework since 2008, and the

SEC is considering revisions that could significantly impact which foreign companies qualify for the more-relaxed

U.S. reporting requirements afforded to FPIs. The concept release outlines several potential approaches to revising

the FPI definition, including updating existing eligibility criteria, adding foreign trading volume requirements, and

incorporating an assessment of foreign regulation. If we lose our status as a foreign private issuer in the future, we

will no longer be exempt from the rules described above and, among other things, will be required to file periodic

reports and annual and quarterly financial statements as if we were a company incorporated in the United States. If

this were to happen, we would likely incur substantial costs in fulfilling these additional regulatory requirements and

members of our management would likely have to divert time and resources from other responsibilities to ensuring

these additional regulatory requirements are fulfilled. See "Item 16.G: "Corporate Governance—Implications of

Being a Foreign Private Issuer."

***Because we have no plans to pay cash dividends on Ordinary Shares for the foreseeable future, you may not***

***receive any return on investment unless you are able to sell your Ordinary Shares for a price greater than that***

***which you paid for them.***

We plan to retain future earnings, if any, for future operations, expansion and debt repayment and have no

current plans to pay any cash dividends for the foreseeable future. Any decision to declare and pay dividends as a

public company in the future will be made at the discretion of our board of directors and will depend on, among

other things, our results of operations, financial condition, cash requirements, contractual restrictions, acquisition

plans and activities, and other factors that our board of directors may deem relevant. In addition, our ability to pay

dividends may be limited by covenants of outstanding indebtedness we or our subsidiaries incur. As a result, you

may not receive any return on your investment unless you sell our Ordinary Shares for a price greater than that

which you paid for them.

***If securities or industry analysts do not publish or cease publishing research or reports about us, our business, or***

***our market, or if they change their recommendations regarding our securities adversely, the price and trading***

***volume of our securities could decline.***

The trading market for our securities will be influenced by the research and reports that industry or

securities analysts may publish about us, our business, market or competitors. Securities and industry analysts may

not publish research on us. If no securities or industry analysts commence coverage of our company, our share price

and trading volume would likely be negatively impacted. If any of the analysts who may cover our company change

their recommendation regarding our Ordinary Shares adversely, or provide more favorable relative

recommendations about our competitors, the price of our Ordinary Shares would likely decline. If any analyst who

may cover our company were to cease coverage of our company or fail to regularly publish reports on us, we could

lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline.

***We may be subject to securities litigation, which is expensive and could divert management attention.***

Our share price may be volatile and, in the past, companies that have experienced volatility in the market

price of their stock have been subject to securities litigation, including class action litigation. We may be the target

of this type of litigation in the future. Litigation of this type could result in substantial costs and diversion of

management's attention and resources, which could have an adverse effect on our business, financial condition, and

results of operations. Any adverse determination in litigation could subject us to significant liabilities.

***There can be no assurance that we will be able to comply with the continued listing standards of Nasdaq or any***

***other exchange.***

Our Ordinary Shares are listed on Nasdaq under the symbol "CNCK". If Nasdaq delists our Ordinary

Shares from trading on its exchange for failure to meet the listing standards, we and holders of our Ordinary Shares

could face significant adverse consequences including:

• a limited availability of market quotations for our Ordinary Shares;

• reduced liquidity for our Ordinary Shares;

• a determination that our Ordinary Shares are a "penny stock" which will require brokers trading in our

Ordinary Shares to adhere to more stringent rules, possibly resulting in a reduced level of trading

activity in the secondary trading market for shares of our Ordinary Shares;

• a limited amount of analyst coverage; and

• a decreased ability to issue additional securities or obtain additional financing in the future.

**Risks Relating to Tax Matters**

***The imposition of additional or higher taxes (including tariffs), or other retaliatory measures in respect of***

***disputed national or international tax policy, arrangements or agreements, whether resulting from a change of***

***tax laws or a different interpretation or application of tax laws or by unilateral action of a government in our***

***outside of the jurisdictions of our operations, could affect demand for our exchange services and/or may***

***otherwise have an adverse effect on our business, results from operations and/or financial condition.***

Tax laws, regulations and treaties are complex and their application is often subject to interpretation. We

may, periodically or on an ad hoc basis, be subject to tax audits or other investigations aimed at assessing our

compliance with any direct and/or indirect taxes or levies. Tax authorities may not agree with our interpretations of,

or the positions we have taken or intend to take on, tax laws, regulations or treaties applicable to us, our activities,

services or transactions. In case of challenges by tax authorities, these may result in lengthy and costly proceedings,

additional tax assessments, and the actual payment of additional taxes or levies, interest and/or penalties.

Coincheck Parent is domiciled in the Netherlands, its operating subsidiaries are domiciled and conduct their

businesses in Japan, our Ordinary Shares are listed in a United States market (Nasdaq), and our business strategy

includes potential acquisitions of companies or businesses that could be domiciled, and conduct business, in other

countries or regions. Unilateral or internationally agreed or disputed changes in international tax policy, laws or

regulations or in the policies or positions of relevant tax authorities, including Japanese, U.S. or Dutch tax

authorities and the application of tariffs or other executive actions, regarding the disputed, application,

administration or interpretation of tax laws, regulations or treaties, could also increase the taxes or levies (including

tariffs) payable by us or in respect of our services or transactions, possibly even with retroactive effect.

Further, the imposition of any new or additional taxes or levies on the services and products we offer or

may offer in the future, or in respect of holding, entering into transactions or otherwise relating to crypto assets,

could adversely affect the demand for our services and our results from operations.

***If we cease to be a Dutch tax resident for the purposes of a tax treaty concluded by the Netherlands and in certain***

***other events, we could potentially be subject to a proposed Dutch dividend withholding tax in respect of a deemed***

***distribution up to our entire market value less paid-up capital insofar as it exceeds EUR 50 million.***

Under a proposal of law currently pending before the Dutch parliament, the Emergency act conditional exit

tax dividend withholding tax (Spoedwet conditionele eindafrekening dividendbelasting, "DWT Exit Tax"), we will

be deemed to have distributed an amount up to our entire market capitalization less recognized paid-up capital

immediately before the occurrence of certain events, including if we cease to be a Dutch tax resident for purposes of

a tax treaty concluded by the Netherlands with another jurisdiction and become, for purposes of such tax treaty,

exclusively a tax resident of that other jurisdiction which is a qualifying jurisdiction. A qualifying jurisdiction is a

jurisdiction other than a member state of the EU/EEA which does not impose a withholding tax on distributions

sufficiently similar to the Dutch dividend withholding tax, or that does impose such tax but that grants a step-up for

earnings attributable to the period prior to it becoming exclusively a resident in such jurisdiction. This deemed

distribution will be subject to a 15% tax insofar as it exceeds a franchise of EUR 50 million. The tax is payable by us

as a withholding agent. A full exemption applies insofar shareholders are resident in an EU/EEA member state or a

state that has concluded a tax treaty with the Netherlands that contains a dividend article, provided we submit a

declaration confirming the satisfaction of applicable conditions by qualifying shareholders within one month

following the taxable event. We will be deemed to have withheld the tax on the deemed distribution and have a

statutory right to recover this from our shareholders. Dutch resident shareholders qualifying for the exemption are

entitled to a credit or refund, and non-Dutch resident shareholders qualifying for the exemption are entitled to a

refund, subject to applicable statutory limitations, provided that the tax has been actually recovered from them.

The DWT Exit Tax has been amended several times since the initial proposal of law and is still under

discussion. It is therefore not certain whether the DWT Exit Tax will be enacted and if so, in what form. If enacted

in its present form, the DWT Exit Tax will have retroactive effect as from 8 December 2021.

***We may not be eligible for withholding tax relief benefits in respect of income received by us under relevant***

***treaties for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income***

***and capital and may be required to adopt additional measures to claim such benefits under the relevant tax***

***treaties.***

Our ability to efficiently fund, realize investments and/or repatriate income or capital gains from

jurisdictions in which we are or will be active may depend on our ability to claim benefits under relevant treaties for

the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital

("tax treaties") concluded between the Netherlands and such jurisdictions. It depends on the provisions of the

relevant tax treaty and the specific circumstances whether we would be entitled to tax treaty benefits and our

entitlement to such benefits may change due to changes to the tax treaty or the interpretation or application thereof

or relevant facts and circumstances. The ability to claim tax treaty benefits may necessitate restructuring our

corporate structure and/or business operations, including changes to our management and organizational structure.

This may result in additional complexity and costs. If we are not eligible to claim materially relevant tax treaty

benefits, this could result in additional tax costs that may have an adverse impact on our ability to efficiently fund,

realize investments and/or repatriate income or capital gains from the jurisdictions in which we are or will be active,

and our after tax results and financial condition.

***We operate so as to be treated exclusively as a resident of the Netherlands for tax purposes, but other jurisdictions***

***may also claim taxation rights over us.***

As a Dutch limited liability company incorporated under Dutch law, we are in principle deemed to be a tax

resident of the Netherlands subject to Dutch corporate income tax on our worldwide income and obliged to withhold

Dutch dividend withholding tax on (deemed) distributions to our shareholders. We intend to maintain our

organizational and management structure in such a manner that we should be regarded to have our residence for tax

purposes exclusively in the Netherlands and should not be regarded as a tax resident of any other jurisdiction.

Because our group conducts most of its business operations outside of the Netherlands, other jurisdictions, including

Japan, may also claim taxation rights over us, for instance by virtue of tax residency, having a permanent

establishment or otherwise. Furthermore, changes to applicable laws or interpretations thereof may also result in us

ceasing to be exclusively tax resident in the Netherlands. A failure to achieve or maintain exclusive tax residency in

the Netherlands may result in adverse tax consequences. The impact of this risk would differ depending on the

jurisdictions and tax authorities involved and our ability to resolve double taxation issues, for instance through

mutual agreement procedures and/or other dispute resolution mechanisms under an applicable tax treaty or the

dispute resolution mechanism under the EU Arbitration Directive (in case of an EU jurisdiction).

***While we do not believe we were a passive foreign investment company (a "PFIC") for our most recent taxable***

***year, and we do not expect to become a PFIC in the current taxable year or in the foreseeable future, there can be***

***no guarantee in this regard.***

Based on the past and projected composition of our income and assets, and the valuation of our assets,

including goodwill, we do not believe we were a PFIC for our most recent taxable year, and we do not expect to

become a PFIC in the current taxable year or the foreseeable future, although there can be no assurance in this

regard. If we are or become a PFIC, you could be subject to additional U.S. federal income taxes on gain recognized

with respect to Ordinary Shares and on certain distributions, plus an interest charge on certain taxes treated as

having been deferred under the PFIC rules. See "Taxation — Certain U.S. Federal Income Tax Consequences to

U.S. Holders — Passive Foreign Investment Company."

**Risks Relating to our Organization in the Netherlands**

***We are a Dutch public company with limited liability, and our shareholders may have rights different than those***

***of shareholders of companies organized in the United States.***

The rights of our shareholders may be different from the rights of shareholders of companies governed by

the laws of U.S. jurisdictions. We are a Dutch public company with limited liability (naamloze vennootschap). Our

corporate affairs are governed by our Articles of Association. The rights of our shareholders and the responsibilities

of members of our board of directors may be different from the rights of shareholders and the responsibilities of

members of boards of directors of companies governed by the laws of other jurisdictions, including the United

States. In the performance of its duties, our Board is required by Dutch law to consider our interests, the interests of

our affiliated enterprise and the interests of all of our stakeholders, including our shareholders and employees, in all

cases with due observation of the principles of reasonableness and fairness. It is possible that some of these parties

will have interests that are different from, or in addition to, the interests of shareholders.

***We are subject to the Dutch Corporate Governance Code, but do not comply with all of the suggested governance***

***provisions of the Dutch Corporate Governance Code, which may affect your rights as a shareholder.***

As a Dutch company, we are subject to the Dutch Corporate Governance Code ("DCGC"). The DCGC

contains both principles and suggested governance provisions for management boards, supervisory boards,

shareholders and general meetings, financial reporting, auditors, disclosure, compliance and enforcement standards.

The DCGC is based on a "comply or explain" principle. Accordingly, public companies are required to disclose in

their annual reports, filed in the Netherlands, whether they comply with the suggested governance provisions of the

DCGC. If a company does not comply with a principle or suggestion, it is required to give the reason. The DCGC

applies to all Dutch companies listed on a government-recognized stock exchange, whether in the Netherlands or

elsewhere, including Nasdaq. The principles and suggested governance provisions apply to our board of directors (in

relation to role and composition, conflicts of interest and independence requirements, board committees and

remuneration), shareholders and the general meeting (for example, regarding anti-takeover protection and our

obligations to provide information to our shareholders) and financial reporting (such as external auditor and internal

audit requirements). We aim to comply with all applicable provisions of the DCGC except where such provisions

conflict with U.S. exchange listing requirements or with market practices in the United States or the Netherlands.

This compliance position may affect your rights as a shareholder, and you may not have the same level of protection

as a shareholder in a Dutch company that fully complies with the suggested governance provisions of the DCGC.

***It may be difficult to enforce U.S. judgments against us.***

We are a company incorporated under the laws of the Netherlands, and nearly all of our assets are outside

of the United States. The majority of our directors and senior management and independent auditors reside outside

the United States, and all or a substantial portion of their respective assets may be located outside the United States.

As a result, it may be difficult for U.S. investors to effect service of process within the United States upon these

persons. It may also be difficult for U.S. investors to enforce within the United States judgments predicated upon the

civil liability provisions of the securities laws of the United States or any state thereof. In addition, there is

uncertainty as to whether courts outside the United States would recognize or enforce judgments of U.S. courts

obtained against us or our directors or officers predicated upon the civil liability provisions of the securities laws of

the United States or any state thereof. Therefore, it may be difficult to enforce U.S. judgments against us, our

directors and officers and independent auditors.

**General Risk Factors**

***Adverse developments affecting the financial services industry, including events or concerns involving liquidity,***

***defaults or non-performance by financial institutions, could adversely affect our business, financial condition or***

***results of operations, or our prospects.***

Investor concerns regarding the U.S. or international financial systems could result in less favorable

commercial financing terms, including higher interest rates or costs and tighter financial and operating covenants, or

systemic limitations on access to credit and liquidity sources, thereby making it more difficult for us to acquire

financing on terms favorable to us in connection with a potential business combination, or at all, and could have

adverse impacts on our liquidity, our business, financial condition or results of operations, as well as prospects. Our

business may be adversely impacted by these developments in ways that we cannot predict at this time, there may be

additional risks that we have not yet identified, and we cannot guarantee that we will be able to avoid negative

consequences directly or indirectly from any failure of one or more banks or other financial institutions.

***Market conditions, economic uncertainty or downturns could adversely affect our business, financial condition,***

***and operating results.***

In recent years, the United States and other markets have experienced cyclical or episodic downturns, and

worldwide economic conditions remain uncertain, including as a result of a pandemic, supply chain disruptions, and

ongoing wars and geopolitical conflicts, imposed and threatened tariffs, elevated interest rates, and higher prices

from recent elevated inflation levels.

We cannot predict the timing, strength, or duration of any future economic slowdown or any subsequent

recovery generally, or in any industry. If the conditions in the general economy and the markets in which we operate

worsen from present levels, our business, financial condition and operating results could be adversely affected.

***We may be adversely affected by natural disasters, pandemics, wars, terrorism, and other catastrophic events that***

***could disrupt our business operations, and our business continuity and disaster recovery plans may not***

***adequately protect us from a serious disaster.***

Our business operations are subject to interruption by natural disasters, fire, power shortages, pandemics,

terrorism, and other events beyond our control. Further, acts of terrorism (including cyber terrorism), social unrest,

and other geo-political events could cause disruptions in our business or the economy as a whole. In the event of a

natural disaster, including a major earthquake, blizzard, or hurricane, or a catastrophic event such as a fire, power

loss, or telecommunications failure, we may be unable to continue our operations and may endure system

interruptions, reputational harm, interruptions in service, breaches of data security, and loss of critical data, all of

which could have an adverse effect on our reputation, financial condition and operating results.

We do not maintain insurance sufficient to compensate us for the potentially significant losses that could

result from disruptions to our services, including as a result of cyberattacks. Additionally, all the aforementioned

risks may be further increased if we or our service providers do not or cannot implement our disaster recovery plan

or they prove to be inadequate. To the extent natural disasters or other catastrophic events concurrently impact data

centers we rely on in connection with private key restoration, customers will experience significant delays in

withdrawing funds, or in the extreme we may suffer loss of customer assets.

**Item 4. Information on the Company**

**A.History and Development of the Company**

**Prior to April 2018 Acquisition by Monex**

The Coincheck-branded business was initially launched in 2012 by ResuPress K.K., which in 2017 changed

its corporate name to Coincheck, Inc. In January 2018, Coincheck's NEM hot wallet was hacked and it lost

526.3 million NEM, or ¥46.6 billion, of customer funds. Although Coincheck compensated customers who were

adversely affected by the cybersecurity incident, it became subject to lawsuits relating to the calculation of the

compensation provided (all of these lawsuits have been resolved). In addition, the JFSA required Coincheck to

suspend its operations and Coincheck became available for sale.

**Acquisition by Monex and Steps Taken to Improve Governance and Risk Management**

In April 2018, Coincheck was acquired by Monex for ¥3.6 billion. After the acquisition, Monex worked

closely with the JFSA to implement heightened security measures and better corporate governance. As part of these

initiatives, Monex engaged a financial cybersecurity consulting firm to conduct a holistic review of Coincheck's

processes and system architecture to further improve the security of Coincheck's cryptocurrency exchange. Under

Monex's control, four new directors and three corporate auditors were appointed, as well as seven executive

officers. These appointments helped to strengthen the supervisory function of Coincheck's board of directors and to

improve the independence of audits through the expertise of outside members. Improvements were also made

regarding the management of segregated customer assets through ongoing monitoring and monthly compliance

reports and discussions at compliance committee meetings attended by external law firms and Coincheck's new full-

time audit and supervisory board members.

Under Monex's new leadership, Coincheck also improved its risk management policies pursuant to which a

risk committee monitors on a monthly basis the state of development and operation of Coincheck's risk management

system as a whole, including by monitoring and confirming cryptocurrency positions on a daily basis, monitoring

credit risk by verifying positions held against a limit amount determined with respect to each cover counterparty,

and monitoring liquidity risk by confirming the supply of each crypto asset and the corresponding number of

transactions on a daily basis.

Coincheck also joined with the 16 domestic cryptocurrency exchanges in operation in Japan as of

March 2018 to form the JVCEA in order to strengthen rules in the industry to reduce the risk of future similar

incidents. In October 2018, the JFSA granted the cryptocurrency industry in Japan self-regulatory status, giving the

JVCEA the ability to establish standardized operating procedures, including the ability to set guidelines on the

crypto assets that may be traded by exchange operators. The JFSA also authorized the JVCEA to monitor and

penalize Japanese cryptocurrency exchanges for noncompliance.

In January 2019, after these significant improvements to Coincheck's risk management and governance

systems, Coincheck received a license as a crypto asset exchange service provider from the JFSA and registered

with the Kanto Financial Bureau under the Payment Services Act, and also became a member of the Japan

Cryptoasset Business Association. Since the 2018 acquisition by Monex, Coincheck has actively worked, and

intends to continue to actively work, with all applicable regulators to improve the regulatory standards of crypto

assets in Japan, and Coincheck's Chairman, Representative Director & Executive Director, Satoshi Hasuo, currently

serves as a director of the JVCEA. See "— Regulatory Environment."

Over the past six years, under the leadership of Monex and the Coincheck management team, we have

grown to become a leading crypto asset exchange provider to the Japan retail market, known for our trusted brand,

strong compliance culture, and our robust, easy-to-use and attractive products and services.

**Business Combination and Current Corporate Organizational Structure**

We decided in 2022 to takes steps toward becoming a publicly traded company with shares listed on either

Nasdaq or NYSE. On December 10, 2024, the Business Combination Agreement was closed and the Business

Combination consummated. On December 11, 2024, as contemplated by the Business Combination Agreement, our

Ordinary Shares and Public Warrants commenced trading on Nasdaq under the symbols "CNCK" and "CNCKW,"

respectively. As of the date of this report, the Company's corporate organizational structure is as follows: (1)

Coincheck Parent is the publicly traded holding company; (2) Coincheck is Coincheck Parent's principal operating

subsidiary; (3) Next Finance, a small private Japanese company engaged in a crypto staking platform service

business, acquired by Coincheck Parent in March 2025, is Coincheck Parent's other operating subsidiary; and (4)

CCG Administrative Services, Inc., a Delaware corporation, provides certain administrative services to Coincheck

Parent. Following the Business Combination, M1 Co was a direct, wholly owned subsidiary of Coincheck Parent

and the sole shareholder of Coincheck, but, on June 20, 2025, was merged into Coincheck, resulting in Coincheck

Parent becoming the sole shareholder of Coincheck.

**B.Business Overview**

**Our Mission**

We believe we are, today, a leader in the Japanese retail crypto asset industry through our Marketplace

platform offering and related retail crypto services. Our mission is threefold: (1) to increase our share of the

growing Japanese crypto asset retail market through our Marketplace platform, including by adding or enhancing

new or recent features and related services attractive to our customers; (2) to expand our institutional business, such

as through the recent launch of the Coincheck Prime brand and our Coincheck IEO platform; and (3) mainly through

acquisitions, investments, or joint ventures or other strategic partnerships, to acquire and operate retail and

institutional crypto businesses outside of Japan, such as in Europe and other regions.

**Overview**

Since the launch of our crypto asset exchange in 2014, we have provided a young, highly-engaged retail

customer base with the opportunity to become familiar with crypto assets by offering a service we believe is easy for

anyone to use, regardless of financial or technological literacy. We operate, through our platforms, one of the largest

multi-cryptocurrency marketplaces in Japan. We had as of March 31, 2025, according to the JVCEA, a 24.9%

market share in Japan by trading volume, and our approximately 2.3 million verified users represent an 18.5% retail

market share. As of March 31, 2023, 2024 and 2025, our customer assets were ¥344 billion, ¥744 billion and ¥859

billion, respectively. Our marketplace trading volume was ¥157.1 billion, ¥234.6 billion and ¥337.5 billion during

the years ended March 31, 2023, 2024 and 2025, respectively.

We believe that our customers choose us due to our trusted and recognized brand, robust product offering

and strong customer service. Approximately 51% of our verified accounts are held by customers under 40 as of

March 31, 2025, providing the opportunity for our business to grow alongside our customers as they reach their

prime earning years. We believe that this, combined with our constant innovation and robust compliance

infrastructure, position us to capitalize on the potential growth of the Japanese crypto economy.

Our Marketplace platform offers our customers access to 30 cryptocurrencies, including Bitcoin, Ethereum

and XRP, while our Exchange platform, which offers 20 cryptocurrencies, is geared more towards sophisticated and

institutional crypto investors and provides liquidity support for transactions on our Marketplace platform. We

believe we are well positioned to benefit from increasing adoption of cryptocurrencies and other new technologies

within Japan, the world's fourth largest economy. We currently derive most of our total revenue from transactions

on our Marketplace platform.

We also continue to be an innovator in the Japanese crypto economy with the goal of providing to Japanese

customers and institutions broad access to technological developments in the industry. For example, we offer our

Coincheck NFT Marketplace, a separate display screen for our customers, which we expect to have synergies within

our retail customer base, and conducted Japan's first IEO during 2021. Our smartphone application is our main

point of contact with our customers, and we believe it provides a user friendly experience with sophisticated user

interface and experience. To maintain the quality of customer experience, we continuously invest in flexible system

and software development, and engineers and product developers accounted for 36.6% of our staff as of March 31,

2025. We believe that having recently become a publicly traded company listed on Nasdaq will help us access

international capital markets, increase our ability to make acquisitions of crypto businesses both inside and outside

of Japan, and enhance hiring and retention of key personnel via equity compensation incentives.

**Our Market Opportunity**

***Crypto assets are becoming more accepted as a new asset class.***

Since 2020, the number of institutional investors who regard crypto assets as a meaningful investment class

has been expanding rapidly. In Japan, Nomura has entered into the crypto asset custody business and Mitsubishi UFJ

Trust announced in April 2025 that it plans to begin issuing a stablecoin. We anticipate that the infrastructure for

institutional investors in Japan that wish to conduct transactions in crypto assets will continue to improve over time.

In North America, beginning in 2021 with the ProShares Bitcoin Strategy ETF, there are now approximately 40

listed exchange-traded funds (ETFs) linked to Bitcoin or Ethereum, further confirming institutional adoption of

crypto assets as investment vehicles. In addition, traditional financial institutions such as Fidelity Investments and

BNY Mellon have both launched crypto custody platform businesses. We believe the entry of traditional

institutional investors supports the premise that crypto assets can form part of a diversified asset portfolio to be held

over the medium- to long-term.

***The cryptocurrency markets, although they have been volatile, have grown significantly over time.***

The total global market capitalization of crypto assets increased from approximately $1.1 billion to

approximately $2.67 trillion between June 30, 2013 and March 31, 2025, equivalent to a CAGR of over 90%.

![CNCK Mar.25 Item 4. Total global market capitalization of crypto assets.jpg](cnck-20250331_g1.jpg)

***The Japanese cryptocurrency market is a large and, we believe, underpenetrated market, representing a***

***compelling opportunity in Japan.***

Japan's domestic cryptocurrency market has had periods of strong transaction volume despite periods of

volatility. In March 2025, the cash-equivalent trading volume on domestic cryptocurrency exchanges, which

includes ours, was approximately ¥1.9 trillion. The below graph illustrates trends in the trading volume since 2019:

![CNCK Mar.25 Item 4. Domestic cryptocurrency cash transaction volume.jpg](cnck-20250331_g2.jpg)

***Potential for growth in the number of registered accounts.***

According to the Japan Securities Dealers Association, the number of securities brokerage accounts held by

individuals in Japan was approximately 38 million as of March 31, 2025. However, according to the JVCEA, there

were only approximately 12.4 million accounts engaged in trading of crypto assets, including both spot transactions

and margin trading, as of March 31, 2025. We believe this shows real potential for growth in investment and trading

of crypto assets by Japanese individuals.

While Japan is the fourth largest global economy, only 10% of the Japanese population owns crypto assets

as of March 2025 (versus, for example, 17% of the United States population as of April 2025), according to data

from the JVCEA and Morning Consult. We believe this suggests the potential for further development of the

Japanese crypto asset market. We believe that the Japanese public is highly engaged and willing to participate in the

crypto asset revolution and encouraged by the country's thoughtful crypto regulation model, which is designed

around protecting the consumer. While our trading volume, together with the trading volume of others in the

industry, has seen declines following the significant decline in cryptocurrency prices after their June 2021 peak, and

the negative publicity, lawsuits and bankruptcies concerning some large industry players beginning at about the time

of the FTX scandal and bankruptcy in 2022, we have continued to see growth in our number of verified accounts

through March 31, 2025. We define verified accounts as accounts that have been opened after the account has been

approved following completion of all application procedures (including "know your customer" or "KYC"), after

subtracting therefrom the total number of closed accounts.

***Japan has a well-developed regulatory environment for safe and secure trading.***

While the legal status of crypto assets is unclear in many places around the world, Japan is one of the first

countries to define crypto assets in law and to introduce regulations for crypto asset exchanges. In April 2017, the

revised Payment Services Act and the revised Act on Prevention of Transfer of Criminal Proceeds, which introduced

a definition of crypto assets (originally called virtual currency under that law) and a regulatory framework for crypto

asset exchanges, came into effect, and cryptocurrency exchange businesses became subject to registration by the

JFSA. As a result, anti-money laundering (AML) and counter-terrorist financing (CFT) regulations began to be

applied to cryptocurrency exchanges. Additionally, in order to protect users and enforce proper and reliable business

practices, the JFSA's administrative guidelines have required cryptocurrency exchange companies to establish a

system for examining how cryptocurrencies are handled and a system for appropriately verifying risks. In

March 2018, the JVCEA was established and became a certified self-regulatory organization in October of the same

year. The JVCEA formulates and publishes self-regulatory guidelines and rules in compliance with various JFSA

guidelines to protect users and strengthen the AML/CFT system. We believe that Japan's robust regulatory

environment has been developed ahead of other markets in the world, contributes to greater acceptance of crypto

assets by Japanese individuals, and places domestic exchanges in an advantageous position.

**Our Strengths**

***We have a leading position in the Japanese retail market.***

As of March 31, 2025, we have a significant share of the Japanese market, with 18.5% of domestic verified

accounts, based on data provided by the JVCEA:

![CNCK Mar.25 Item 4. Share of Japan market.jpg](cnck-20250331_g3.jpg)

Our product and business strategy is driven in large part by our customer demographics, with broad crypto

asset coverage and Web3 products or services, such as NFT purchase-and-sale support and the ability of customers

to participate in IEOs that appeal to millennials and later generations. We provide our young, loyal retail customer

base with exposure to crypto assets via a user-friendly crypto trading marketplace, mobile-native user interface

(app), seamless KYC onboarding and our dedicated Coincheck NFT Marketplace. Our strong market position and

brand recognition helps us not only attract, engage and retain customers, but also attracts engineers and product

developers to work for and with us. This allows us to continue to operate a consistent cycle of innovation and

leadership. We believe our brand recognition will be an advantage as we seek to help grow the markets for crypto

assets in Japan.

Our overall trading volume (Marketplace platform and Exchange platform, combined), and in particular our

altcoin trading volume, grew dramatically as the global crypto asset industry saw growth in asset prices and trading

volumes in 2021, then declined with the price decline in Bitcoin and many altcoins, before beginning to generally

trend up again starting in early 2024. And while Bitcoin remains the crypto asset most traded in Japan, we appear to

have more diverse trading volume compared to the industry average. For example, according to the JVCEA, the

average share of Bitcoin trading volume on all domestic platforms and exchanges during the year ended March 31,

2025 was approximately 68%, while the share of Bitcoin trading volume on our Marketplace platform during the

same period was approximately 43%. We believe our higher proportion of altcoin trading volume demonstrates the

differentiated value of our Marketplace platform.

The below graphics further illustrate our overall trading volume, including our overall increasing trend in

volume beginning in the fourth quarter of our year ended March 31, 2024:

![CNCK Mar.25 Item 4. Trading volume (Exchange + Marketplace).jpg](cnck-20250331_g4.jpg)

Source: Internal data.

![CNCK Mar.25 Item 4. Trading Volume Composition by Currency.jpg](cnck-20250331_g5.jpg)

Source: Amounts for Coincheck represent trading on our Marketplace platform, amounts for Japan are

derived from JVCEA data that include all types of exchanges, and amounts for Coinbase are taken from its public

disclosure.

***We have a young, highly-engaged customer base.***

We believe a key long-term advantage of our business is our young customer base, with approximately

51% of verified accounts held by customers under 40 as of March 31, 2025. Our platform strongly aligns with our

user base and with products and services that cater to a young demographic. As our users mature and grow their

financial assets over time, we expect them to likewise grow their crypto assets with us. We also expect to deepen our

relationships with our customers as we continue to innovate and launch more services to provide for their changing

needs. Our customers in their 40s and 50s (approximately 42% of our user base) present a significant growth

opportunity as well because they typically have greater assets than our younger users (see "Users by age" graph

below).

![CNCK Mar.25 Item 4. Users by age.jpg](cnck-20250331_g6.jpg)

Source: Internal data.

***We have user-friendly platforms and product offerings.***

One of our key strengths is our ability to provide not only an intuitive and simple, easy-to-use platform for

first-time users who may be inexperienced in crypto asset trading, but also offer robust features for more

experienced users through our web browser platform. As of March 31, 2025, our smartphone trading application was

being used by over 90% of our customers, and we believe the proportion of customers taking advantage of our

smartphone application will remain at a high level. This application was built with a focus on the user experience

and targets digital/mobile-native customers that have less experience using a trading service. We designed our

mobile application and web browser offerings independently, as they each provide very different functionalities.

This helps ensure a variety of options for different kinds of customers.

Below are images of our mobile application and our desktop web browser screens:

![CNCK Mar.25 Item 4. Mobile app and Desktop screen.jpg](cnck-20250331_g7.jpg)

As of March 31, 2025 and the date of this report, our Marketplace and Exchange platforms together

currently support trading of 31 cryptocurrencies. Our Marketplace platform supports 30 cryptocurrencies, and our

Exchange platform supports 19 of the cryptocurrencies offered on our Marketplace platform plus one that is not

available on the Marketplace platform (MakerDAO's DAI stablecoin). We continually seek to expand our platform

offerings to better meet the needs of our customer base.

***We have a trusted brand.***

We believe that we have a strong brand that is trusted by users, and that a strong trusted brand is critical in

acquiring customers who are first-time crypto users and to attract larger, including institutional, investors. Following

our acquisition by Monex in April 2018 we strengthened, and have since that time continued to strengthen, our

cybersecurity and governance, continuously investing in the stability of our platforms and their underlying systems.

We have also played a constructive role in the JVCEA, which was granted self-regulatory status by the JFSA in

October 2018 to set standardized operating procedures for cryptocurrency exchanges in Japan. Coincheck's

Chairman, Representative Director & Executive Director currently serves as a director of the JVCEA. We believe

we are considered by many to be the company of choice to begin investing in crypto assets safely.

***We have a robust and historically profitable financial model.***

We believe our historical growth and profitability, combined with re-investment in our platforms and

brand, position us well to pursue further opportunities, and we have invested, and expect to continue to invest, in

new products and services to enable us to grow during various market cycles. We historically have had a strong

financial profile, as reflected in our high revenue growth and positive net profit throughout various cycles in the

market through the year ended March 31, 2022. When declines in the prices of crypto assets and trading volume led

to a sharp decline in our total revenue in the year ended March 31, 2023, after taking measures to reduce our

variable expenses in light of those market conditions we recorded a net loss of ¥559 million for the year ended

March 31, 2023, a net profit of ¥1,967 million for the year ended March 31, 2024 and a net loss of ¥14,350 million

for the year ended March 31, 2025; however, it should be noted that our net loss for the year ended March 31, 2025

included large cash and non-cash expenses of ¥18,321 million (¥4,607 million cash expense and ¥13,714 million

non-cash expense) related to the consummation of the Business Combination and the listing of our Ordinary Shares

on Nasdaq. Accordingly, we had an Adjusted EBITDA loss of ¥360 million for the year ended March 31, 2023,

Adjusted EBITDA of ¥3,773 million for the year ended March 31, 2024 and Adjusted EBITDA of ¥ 5,718 million

for the year ended March 31, 2025. See below and "Item 5. Operating and Financial Review and Prospects" and our

description therein of Non-IFRS Financial Measures — Reconciliation of Adjusted EBITDA to Net Profit for details

on the reconciliation of EBITDA to net profit in accordance with IFRS.

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| (in millions) | **2023** | **2024** | **2025** |
| **Reconciliation of Adjusted EBITDA:** |  |  |  |
| Net profit (loss) for the year or the period | ¥(559) | ¥1,967 | ¥(14350) |
| Add: Income tax expenses (benefits) | (287) | 873 | 991 |
| Profit (loss) before income taxes | (846) | 2840 | (13359) |
| Add: Interest expense | 3 | 6 | 29 |
| Add: Transaction expenses excluding listing expense | 717 | 248 | 4607 |
| Add: Listing expense |  |  | 13714 |
| Add: Depreciation and amortization | 483 | 679 | 727 |
| Adjusted EBITDA | ¥(357) | ¥3,773 | ¥5,718 |

---

***We have a strong and experienced management team to support continued growth.***

Our management team is comprised of experts from across the crypto asset and financial services

industries. We believe that our team gives us a competitive advantage over other exchanges and our corporate

culture combines compliance and regulatory engagement with an innovation mindset that permeates throughout our

company. We also continuously support the development of our management team with guidance from a seasoned

group of directors.

**Our Services**

As a licensed cryptocurrency exchange services provider in Japan, our main business activity is offering

and maintaining accounts for retail investors in Japan to invest in cryptocurrencies using our Marketplace platform,

which supports the purchase and sale by our customers of 30 cryptocurrencies as of March 31, 2025 and the date of

this report. In the years ended March 31, 2023, 2024 and 2025, 98.9%, 99.6% and 99.6%, respectively, of our total

revenue consisted of transaction revenue generated from our Marketplace platform. To support customer acquisition,

retention and activity, we seek to include attractive features in our retail investor offering, including closer interfaces

with certain Web3 businesses which can benefit our customers, that we believe add value or can otherwise

differentiate us, many of which are described below. We also have initiatives, such as our recently launched

"Coincheck Prime" branded offering, our industry-first IEO platform business and our recently-acquired staking

platform service offering (which we expect will enhance our current staking award offering), that are designed to

increase our appeal to institutional and more sophisticated investors in Japan and to attract other crypto industry

firms to work with us. Part of our strategy is to expand these types of services and initiatives in countries and regions

outside of Japan, primarily through acquisitions, investments, joint ventures or strategic relationships with firms or

businesses in such other countries and regions, which we have been actively exploring since becoming a Nasdaq-

listed company in December 2024. There can be no assurance that any such expansion opportunity we explore will

result in an acquisition or similar transaction, or that if consummated any such acquisition or similar transaction

would be successful.

***Our Retail Investor Offering***

*Marketplace Platform*

Our Marketplace platform is our core offering. Our user-friendly smartphone application, which is what

most of our customers use, allows for comprehensive yet easy-to-use functionality for beginning and less-

experienced customers. Our more experienced traders may also use the smartphone application or our more feature-

rich web browser-based interface.

For customer purchase and sale transactions, Coincheck is always the seller to, and buyer from, the

customer, and its compensation is in the form of a price spread. The spread we set is generally in a range of 0.1% to

5.0% of the transaction's asset value, and can change from time to time. We make this determination by considering

prevailing market conditions with respect to a cryptocurrency, including competitors' offers. We may increase a

spread when there is sudden market movement and shortage of liquidity. While Coincheck does not charge

customers fees for cryptocurrency deposits into their Coincheck accounts, it does charge for withdrawals or

transfers from their accounts to the customers' private wallets or to their accounts with third-party exchanges. The

prices we display for the cryptocurrencies we support include our bid-ask spreads, which are generally updated

every 10 seconds, and we also display our withdrawal/transfer fees. While there are no defined limits on the fees we

are allowed to charge, under Japanese cabinet orders applicable to crypto asset exchange service providers and the

guidelines of the JVCEA we do provide information to customers at the time of account opening about our fees,

including explanatory materials regarding our bid-ask spreads, as well as fees for withdrawals or transfers, and any

other service fees. We also provide this information via our website and smartphone application.

The trading operations system behind our platform screens is designed to limit our price-risk exposure

regarding our buy and sell transactions with our customers by matching corresponding buy and sell orders to offset

open positions. Under Coincheck's terms of service, a customer's order is locked-in immediately upon the

customer's acceptance of the quoted price and cannot be changed or canceled after that point. After we accept a

customer's sale or purchase order for a particular crypto asset, our system will:

• first seek to match and offset the user's buy order with a corresponding sell order of another user, or

vice versa, by searching for that availability or liquidity across order positions held by our customers

on our platforms (first, within our Marketplace Platform, then our Exchange platform);

• if the matching of a buy or sell order is not 100% completed, our system compares our total exposure

to the subject cryptocurrency against policy thresholds we have set for such exposure, which as of

March 31, 2025 range from -¥20 million to ¥40 million for Bitcoin and from ¥1.5 million to

¥20 million for other cryptocurrencies we support; and

• if our policy threshold for exposure is exceeded because there was insufficient liquidity on our

Exchange platform, execute a hedging or cover transaction with respect to the subject cryptocurrency

on another cryptocurrency exchange.

Our system technology's search and matching capabilities are designed to achieve near-simultaneous

execution of both sides of each trade or transaction to substantially eliminate our risk as the buyer and seller for

customers' trades.

*Exchange Platform*

Our Exchange platform is targeted at more experienced and institutional users who are interested in trading

larger amounts, and also provides additional liquidity to support the fulfillment of customer orders made on our

Marketplace platform. Our Exchange platform is operated via a web browser-based version of our software that we

believe gives more experienced and sophisticated users a higher level of functionality to access deep markets in

select cryptocurrencies. The Exchange platform works as follows: Order books are created where sellers and

purchasers share their respective trading prices, and once orders with similar trading prices and conditions are

matched, these transactions are promptly executed and settled. Under our terms of service, a sales contract binding

on both parties is formed as soon as a match is completed. Our Exchange platform supports direct purchase and sale

transactions between users for 20 cryptocurrencies as of March 31, 2025 and the date of this report. We historically

have not charged fees or commissions for the use of, or transactions completed on, our Exchange platform, with

certain exceptions, so we do not currently derive any material revenue from customer transactions made on it. We

consider on a continuous basis, based on relevant factors such as price or fee terms of competitors' similar exchange

offerings, whether we can grow our revenue in our Exchange platform business.

Coincheck also places direct orders from time to time on the Exchange platform to execute cover

transactions on its Marketplace platform, making trades on the same basis as other users on the platform, at what we

believe are more efficient prices compared to available alternatives. We do not include our purchases in our

published Exchange platform volume metrics.

*Cryptocurrencies Supported By Our Marketplace and Exchange Platforms*

As of March 31, 2025 and the date of this report, we support 31 cryptocurrencies across our Marketplace

and Exchange platforms. Our Marketplace platform supports 30 cryptocurrencies and our Exchange platform

supports 20, 19 of which are also supported on our Marketplace platform and one of which, DAI, is tradeable only

on our Exchange platform. These 31 supported cryptocurrencies are listed below, with an asterisk (\*) next to the

twenty cryptocurrencies that can be traded on our Exchange platform.

---

| | |
|:---|:---|
| • Bitcoin (BTC)\* | • FiNANCiE (FNCT)\*  |
| • Ethereum Classic (ETC)\* | • Immutable (IMX)\* |
| • Ripple (XRP)\* | • IOST (IOST)\* |
| • ApeCoin (APE) | • Lisk (LSK)\* |
| • Avalanche (AVAX)\* | • Litecoin (LTC)  |
| • Axie Infinity (AXS) | • Maker (MKR)  |
| • Basic Attention Token (BAT) | • Monacoin (MONA)\* |
| • Blood Crystal (BC)\* | • NEM (XEM)\*  |
| • Bitcoin Cash (BCH)\* | • Quantum (QTUM) |
| • Brilliantcrypto Token (BRIL)\* | • Polygon (MATIC) |
| • Chainlink (LINK) | • Polkadot (DOT) |
| • Chiliz (CHZ)\* | • Stellar Lumens (XLM)  |
| • Dai (DAI)\* | • The Sandbox (SAND) |
| • Dogecoin (DOGE)\* | • Shiba Inu (SHIB)\* |
| • Enjin Coin (ENJ)\* | • Wrapped Bitcoin (WBTC)\* |
| • Ethereum (ETH)\* |  |

---

We continuously evaluate supporting additional cryptocurrencies on our platforms. If a proposed

additional cryptocurrency is not already on a JVCEA pre-approved list, we first confirm with the JVCEA that it has

no objection. In all cases, our internal evaluation process requires that the proposed cryptocurrency meet the

following criteria, both prior to its introduction on one of our platforms and continuously thereafter:

• the asset is a "crypto asset" under the definition set out in Section 14 Article 2 of the Payment Services

Act (PSA);

• the currency is appropriate for us to introduce from user protection and public interest perspectives;

• the chain is stable;

• there is equal purchasing opportunity for the asset;

• the program is disclosed to the public and no material vulnerability has been identified;

• the marketing materials do not include contents that are misleading;

• the asset does not breach public policy (for example, it is not similar to gambling);

• the asset is compatible with cold wallets;

• the transactions are traceable and do not remain confidential or anonymous from an anti-money

laundering (AML) or countering financing of terrorism (CFT) rule perspective;

• the asset meets our "sufficient liquidity" requirement;

• the asset is neither being used nor likely to be used in a manner that violates laws and regulations or

public order and morals;

• the asset is neither being used nor likely to be used in crimes, including money laundering and

financing of terrorism;

• the asset has no significant concerns or obstacles as to its transferability and traceability to record and

update possessions;

• the asset can properly be audited by an auditor;

• the asset can be screened before transfer using a blockchain analysis tool;

• the asset can be safely stored and transferred in our system or otherwise without difficulties;

• our offer and support of the asset can properly and reliably fulfill obligations under the PSA; and

• the transfer record of the asset can be traced without any difficulties.

We further evaluate the following risks to satisfy ourselves that our offer and support of the cryptocurrency

is unlikely to create risk exposure which exceeds our risk appetite or that we otherwise consider to be too high or

unreasonable a risk for us:

• market risk: the risk of significant price decline due to oversupply and other factors;

• operating risk: the risk the asset may fail to continue to be available;

• liquidity risk: the risk that holders are unable to transfer or redeem the asset due to low liquidity; and

• other risks that are general to crypto assets or unique to certain assets, including hacking risk, risk of

losing the asset due to falsification of records and reputation risk to us.

*Coincheck Staking* 

In January 2025 we announced the launch of our "staking" reward program, Coincheck Staking, for

Ethereum (ETH), from which both we and our customers benefit. Staking rewards are a way for cryptocurrency

holders to earn more of the same cryptocurrency by actively participating in the blockchain network. By locking up

their crypto in a dedicated hot wallet, these users help to validate transactions and maintain the crypto network's

security. In return, they receive additional cryptocurrency as a reward. We facilitate our customers' staking of ETH

via our role as the custodian and account manager for our customers deposited cryptocurrencies and using a third-

party provider's staking platform service. When the customer's staking reward is received by us, we pass it through

to the customer's account, less our service fee (which we currently share with our third-party staking platform

service provider). While we currently use a third-party staking platform provider to facilitate our customers' staking,

we acquired the staking platform service provider Next Finance in March 2025 for, among other reasons, to be able

to have our own staking platform and not have to share our service fee with a third-party platform provider. We

expect to complete our integration and testing, and be able to provide Coincheck Staking to our customers using our

own (i.e. Next Finance's) staking platform service, during the 2026 calendar year. Coincheck Staking is a separate

offering from our Coincheck Lending program that is described later in this section.

If a validator, or our third-party service platform provider, or the ETH smart contracts, fail to behave as

expected, suffer cybersecurity attacks, experience security issues, or encounter other problems, our customers' assets

may be irretrievably lost. 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 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, which 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.

*Coincheck NFT Marketplace*

Our Coincheck NFT Marketplace, which we launched in 2021, is offered through a separate display screen

to our customers. It was, when launched, the first off-chain NFT exchange platform in Japan operated by a crypto

asset exchange company on which NFTs can be listed for sale and purchase. A non-fungible token (or NFT), unlike

Bitcoin and altcoins, is a digital asset that is unique and non-interchangeable. In recent years, NFTs have been

attracting attention not only as a means of exchanging items in blockchain games, but also as artwork for sale and to

appeal to fan communities. Our Coincheck NFT Marketplace screen lists more than 1,000 NFTs our customers can

click on to initiate a transaction, including globally popular NFTs like The Sandbox, a blockchain game funded by

most popular NFT projects. The box on the screen showing a particular NFT's listing displays the price set by the

seller in a selected cryptocurrency and the Japanese yen equivalent based on current market prices, as well as the

Ethereum equivalent if the seller selects a payment in cryptocurrency other than Ethereum. To be a seller or buyer

on our Coincheck NFT Marketplace, you must first have a customer account with us. The seller of the NFT sets the

accepted payment methods, and the buyer pays the purchase price for the NFT from his or her customer account.

Our sales commission for the NFT transaction, which is generally 10% of the purchase price, is deducted and

retained by us, and the purchase price paid by the buyer, less our sales commission, is deposited into the seller's

customer account.

The box on the screen for each listed NFT, when clicked by the user, also displays the past sales history,

the average price recorded on the Ethereum blockchain, and other information about the NFT. If we observe trades

at price levels substantially different from the recent trading history within Coincheck NFT Marketplace, we may

suspend execution pending a review by our Legal & Compliance Department. NFTs acquired by customers on the

platform are not subject to the custody rules applicable to crypto assets under Japan's Payment Services Act and are

held in hot wallets by us on behalf of the customers. See "— Regulatory Environment — Non-Fungible Tokens" for

information regarding the regulation in Japan for non-fungible tokens.

Our process for approving NFTs for listing and display on the Coincheck NFT Marketplace is conducted in

three stages, with our Business Development Office performing the initial review, our Legal & Compliance

Department performing the secondary review, and then the final review being performed by an internal review

committee (which evaluates the NFT from development and business perspectives). The review process takes into

account the following criteria:

• whether the NFT is a non-substitutable token recorded on the blockchain, or whether the token

standard is ERC-721 or not, as we currently only support ERC-721;

• whether the listing of the NFT on the Coincheck NFT Marketplace is regulated by any applicable laws

or regulations, including a determination that the NFT is neither a crypto asset under the PSA or a form

of security, or ERTRIS, under the FIEA;

• whether the NFT itself breaches any applicable laws and rights (including whether any work is being

used without the permission of the copyright holder);

• whether the operating company of the NFT has any particular issues (including whether it engages

with or is considered to be an anti-social force); and

• whether the operating company of the NFT is in compliance with applicable laws and regulations in

connection with the NFT.

*Coincheck Periodic Purchases* 

Coincheck Periodic Purchases is a cryptocurrency accumulation service we provide that allows customers

to automatically purchase, daily or monthly, a fixed amount of nearly all of the cryptocurrencies supported by us.

Our monthly purchase plan targets customers who prefer to make one single purchase each month, while our daily

purchase plan targets customers who prefer to reduce timing risks related to price by, for example, choosing to

pursue a large-amount purchase strategy by purchasing fractional amounts daily.

*Coincheck Lending (Borrowing by Coincheck of Customers' Cryptocurrencies)*

We provide a service, Coincheck Lending, to our customers through which they can lend their deposited

cryptocurrencies to Coincheck, as borrower, for selected periods of time, in exchange for which Coincheck pays

them an in-kind fee measured as a per annum percentage of the amount borrowed. All cryptocurrencies we support

are eligible, and the program is entirely voluntary. Coincheck is not obligated to make any borrowing a customer has

authorized. Upon expiration of the pre-selected authorized borrowing period, Coincheck returns the borrowed

cryptocurrencies, including the customer's fee, in kind. The customer's fee is paid only on the borrowed customer

crypto assets during the time they are held in Coincheck's segregated hot wallets, regardless of the amount the

customer has authorized to be borrowed. A customer's authorized loan size for a cryptocurrency is limited by the

amount of such cryptocurrency the customer has deposited with us. As of March 31, 2025, 5.5% of customer

cryptocurrency assets were authorized to be borrowed under Coincheck Lending and, at such date, we had borrowed

(by holding them in Coincheck hot wallets) approximately 0.6% of total customer cryptocurrencies. Our Coincheck

Lending program is in keeping with the provisions of the Cabinet Office Ordinance on Crypto Asset Exchanges and

was launched after we consulted with the JFSA.

Customers can participate in Coincheck Lending in amounts greater than ¥10,000 of equivalent value in the

cryptocurrency being loaned, and select lending periods of 14 days, 30 days, 90 days, 180 days and 365 days, at an

implied yield (a fee amount in the same cryptocurrency loaned) of 1%, 2%, 3%, 4% and 5% per year, respectively,

which we may change from time to time for new loans. As of March 31, 2025, we had ¥44,479 million in crypto

asset borrowings, an increase from ¥44,020 million in crypto asset borrowings as of March 31, 2024, and the top ten

lenders accounted for 11% of our crypto asset borrowings as of March 31, 2025. Under the borrowing agreements,

there is no restriction on our use of the borrowed crypto assets during the relevant lending period.

Coincheck Lending has two business objectives. One, is to be able to facilitate more promptly the

settlement of customer transactions and the completion of transfer requests. Because our customers'

cryptocurrencies are held in custody in segregated cold wallets, they are not accessible for immediate settlement of

trades or transfers out of customer accounts. We therefore borrow certain amounts for deposit in our hot wallets to

be able to facilitate more prompt settlement. Our other objective is the fee offered to customers, which we view as

another account benefit that we offer to help attract, engage and retain customers.

See, also, "— Account Management and Custody of Customer Crypto Assets" below.

*Web3-Related Services*

"Web3" can be explained as follows: Blockchain being deployed to new ends (meaning other than for

cryptocurrencies). Examples include (1) NFTs, which are the creation of "digital deed" ownership records of unique

digital objects — or nonfungible tokens (as previously described, the Coincheck NFT Marketplace offers these), (2)

DAOs, or "decentralized autonomous organizations," which raise and spend money, but all decisions are voted on

by members and executed by encoded rules, and (3) DeFi, or "decentralized finance," which aims to remake the

global financial system. The totality of these efforts is called "Web3." Web3 can be viewed as a convenient

shorthand for the project of rewiring how the web works, using blockchain to change how information is stored,

shared, and owned. Advocates argue that Web3 will create new economies, new classes of products, and new

services online, return democracy to the web, and define the next era of the internet.

Our Web-3 related services, including initiatives we may consider, can involve services both to the

companies creating or involved in Web3 businesses or projects, such as issuers, owners or sellers of NFTs, including

gaming companies using blockchain to deliver their products, and companies that seek to launch crypto assets

through IEOs, as well as the retail or end user customers who would like to buy and enjoy the NFTs (which they can

do through our Coincheck NFT Marketplace) or as investors in IEOs (which they can do through our IEO platform).

We are currently considering applying for an Electronic Payment Instruments Exchange Business license in Japan

which, if obtained, could enable us to allow our customers to use their deposited crypto assets to more broadly make

payments for Web3 products and services that interest them through our interfaces with Web3 product and service

providers. There is no assurance that we will decide to apply for such license, receive it, or that if we do receive it

the payment services we provide to our customers will be profitable or otherwise beneficial to our business.

*Monex Points*

In collaboration with Monex, as an account-opening inducement, we offer a benefit that permits customers

of Monex's brokerage firm subsidiary, which offers a benefit to its customers called "Monex Points" (that allows

Monex customers to earn and accumulate points that can be applied as credits for Monex services used by the

customer), to use those points for Coincheck services. A Monex customer who opens a Coincheck account with us

may convert "Monex Points" into certain cryptocurrencies in the customer's account at a rate of one point to ¥1 of

value at current rates. Brokerage customers of Monex are not automatically customers of Coincheck and do need to

establish an account with us in the normal manner.

***Services Focused on Institutional and More Seasoned Investors and Corporate Services***

*Coincheck Prime*

We announced the launch of our "Coincheck Prime" brand on March 25, 2025, as a collection of services

targeted at institutional and corporate cryptocurrency investors. These service offerings include, or will include,

Asset Lock, Large OTC Transactions, and Custody. Coincheck Prime is offered to customers with deposit balances

of at least 10 million yen or who intend to trade cryptocurrencies equivalent to at least 10 million yen. Targeted

users of Coincheck Prime include not only institutional crypto asset investors and Web3 businesses, but also

traditional companies (not Web3) that hold or are interested in making cryptocurrency investments.

*Asset Lock* 

Coincheck "Asset Lock," which has not yet been launched, is a service designed to exempt the crypto asset

holder from year-end mark-to-market taxation in Japan through the customer depositing the subject crypto assets

with Coincheck, for Coincheck to hold in its custody, together with account documentation that restricts the transfer

of those crypto assets for the period required to obtain the exemption.

*Large OTC Transactions*

We offer a large-lot trading service in Japan supporting seven cryptocurrencies (BTC, ETH, BCH, XRP,

MATIC, DAI and LTC). Customers who trade large amounts of cryptocurrencies (ten million yen or more) can buy

and sell cryptocurrencies through block trades 24 hours a day, 365 days a year, at premium rates.

*Custody*

We believe that institutions and other companies that invest in crypto assets place a high value on safe

custody of those assets. We believe that the cold wallet custody we can provide as a regulated crypto asset exchange

provider, together with our commitment and dedication to the safety and stability of our systems, will attract

companies who hold crypto assets to pay a fee for our custody services.

As Coincheck Prime is a new branded offering that has not yet fully launched, there are no assurances that

it will be accepted by institutional customers or otherwise be successful.

*Coincheck IEO*

We launched our IEO business in 2021, which was the first of its kind in Japan, to support the creation of

an environment in which Japanese companies, blockchain companies and blockchain communities can fundraise and

further develop the industry, and cryptocurrency investors can participate in promising initiatives more safely and

easily. IEOs enable crypto start-ups to raise money through a cryptocurrency exchange, such as ours. Generally,

these start-ups are charged fees, including a certain proportion of tokens sold on the exchange, and the tokens

initially sold on the exchange can be listed on the exchange after the IEO is completed. An IEO may be more secure

and transparent for customers than other methods of fundraising, because exchanges such as ours perform a listing

review of start-up projects and their sponsors before allowing fundraising to begin. In our review process, we

comprehensively assess the issuer based on the following criteria:

• uniqueness of issuer's business model;

• financial condition and internal control of the issuer;

• sustainability of issuer's business;

• evaluation of technology (including robustness and versatility);

• utility of the token; and

• synergy of the token with industry trends and our existing businesses.

Furthermore, tokens introduced through our IEO business are also subject to substantially the same

screening process by the CAESP and the JVCEA as applied to other crypto assets handled by the CAESP (See

" — Regulatory Environment"). Therefore, we only support tokens that are approved to be traded as crypto assets

(which do not fall under the category of either ERTR or ERTRIS). We have not set any criteria for the minimum

size of an IEO and consider the potential size together with the above factors in evaluating a proposal.

Through our Coincheck IEO platform, our customers can apply for the desired purchase amount of tokens,

and their account will then be debited for the yen amount required for the desired purchase. All tokens sold in the

IEO are held in the issuer's account opened with us prior to the start of the IEO subscription. After the subscription

period (in the event of an oversubscription, a lottery is conducted), settlement occurs to the account of the

subscribing customer on the delivery date, and are then treated like any other cryptocurrency held by such customer.

After delivery of tokens to the subscribers is completed, the sales proceeds are transferred to a bank account

designated by the issuer of the tokens. For our IEOs, we only accept payment for tokens sold in yen and do not

permit payment with cryptocurrencies. Although we underwrite the tokens, if the total subscription amount falls

below the total sales amount, we do not buy back any unsold tokens.

Our first IEO, the Hashpalette IEO in July 2021, had a total subscription amount that exceeded the funding

target of ¥931.5 million within 6 minutes of launch, and was 24 times oversubscribed, receiving ¥22.4 billion in

subscriptions from over 63,000 customer accounts. We conducted a second IEO with Financie, Inc. in February

2023, which exceeded the funding target of ¥1,066 million within 60 minutes of launch, and was approximately 19

times oversubscribed, receiving over ¥20.0 billion in subscriptions from approximately 25,000 customer accounts.

In June 2024, we conducted an IEO with Brilliantcrypto, Inc. in order to help it create a new gaming experience and

GameFi market (Brilliant Crypto Token games are now offered on our Coincheck NFT Marketplace). In 2023, the

JVCEA began to publish proposed regulatory reforms for IEOs in Japan focused on pricing (pricing methods and

explicit warnings about pricing), liquidity, price stability and sale restrictions. While we have some potential IEOs

"in the pipeline" that are being considered, we believe that the growth and future size of our IEO platform business

will depend, in large part, on regulators' and industry participants' success in establishing a clearer, and more mature

and standardized, regulatory structure for IEOs.

*Staking Platform Services*

As earlier mentioned, we acquired the staking platform service provider Next Finance in March 2025 for,

among other reasons, to be able to have our own staking platform and not have to share our staking reward service

fee with a third-party platform provider (as we do now), and we expect to complete our testing and integration, and

be able to provide Coincheck Staking to our customers using our own (i.e. Next Finance's) staking platform service,

during the 2026 calendar year. However, another reason we made this acquisition is to be able to provide, as a

service vendor, the Next Finance staking platform service to crypto asset exchanges and similar crypto asset

businesses, both inside and outside of Japan, who wish to offer to their customers or otherwise engage in staking.

We intend to focus more on this potential vendor service following the launch of the Next Finance staking platform

service for use in our own Coincheck Staking offering.

*Web3*

As earlier described, our Web3-related transactions and relationships with Web3 entities or businesses

include the listing of their NFTs on our Coincheck NFT Marketplace and that seek to launch crypto assets through

IEOs via our IEO platform, and may include additional transactions and relationships with other Web3 product and

service providers who are interested in our customers being able to purchase their products or services, or otherwise

being able to connect to them, through or using our platforms.

*Exchange Platform* 

As earlier mentioned, our Exchange platform is targeted at more experienced individual and institutional

users. We historically have not charged fees or commissions for the use of, or transactions completed on, our

Exchange platform, with the following exceptions: commissions of 0.05% or 0.1% for the purchase and sale of

Ethereum Classic ("ETC") beginning August 10, 2022, FiNANCiE ("FNTC") beginning January 10, 2024,

Brilliantcrypto Token ("BRIL") beginning June 17, 2024, IOST beginning September 4, 2024, and Blood Crystal

("BC") beginning October 16, 2024. We also charge trading commissions to certain corporate users, including

competitors, that use our Exchange platform to support their liquidity. We consider on a continuous basis, based on

relevant factors such as price or fee terms of competitors' similar exchange offerings, whether we can grow our

revenue in our Exchange platform business.

***Account Management and Custody of Crypto Assets, and Insurance Coverage***

*Account Management and Custody of Customer Crypto Assets*

Key customer account information, such as transaction history and balance information, can be accessed by

our customers online. We do not charge fees for basic account maintenance.

We provide custody for our customers' cryptocurrencies in compliance with the regulations established

under Japan's Payment Services Act (PSA) as described under "— Regulatory Environment — Regulations on

Crypto Asset Exchange Service." Those regulations require segregation of customer cryptocurrencies from our own

inventory and our policy is for substantially all crypto assets (other than cryptocurrencies held by us under our

Coincheck Lending and Coincheck Staking programs or deposited with counterparties, and NFTs) to be held in

secure cold wallets to minimize security risks of loss from cybersecurity attacks and similar incidents. We do not use

borrowed crypto assets for proprietary trading or to enter into unhedged positions. Also, funds (fiat) deposited with

us by our customers are managed separately from our own funds through trust accounts with JSF Trust and Banking

Co., Ltd.

The proportion of cryptocurrencies we hold in cold wallets, hot wallets or on deposit with cover

counterparties depend on regulatory requirements or guidelines regarding cold wallet storage, the amount of

customer transactions driving the need to facilitate prompt execution through the use of hot wallets, and the credit

levels of external exchanges. As earlier mentioned, most of our customers' cryptocurrencies (usually over 90%) are

held in cold wallets, and our policy target is that no more than 5% be held at any given time in hot wallets. Our

Accounting & Finance Department is responsible for monitoring and determining the appropriate allocation, and our

Dealing Department is then responsible for managing what amount of cryptocurrencies to borrow, hold in hot

wallets and to deposit with cover counterparties.

The Marketplace platform displays quotes for the cryptocurrency pricing (which includes Coincheck's

spreads). Once Marketplace platform customers' orders are executed, the transaction is then reflected in the

customer account, and we withdraw or deposit the crypto assets sold or purchased from or in the segregated cold

wallets we maintain for custody of customer assets, normally within 24 hours from execution of the transaction. We

may utilize crypto assets being held by us in our hot wallets that we have borrowed from customers under our

Coincheck Lending program to facilitate the prompt execution of our customers' transactions before we

subsequently transfer the subject crypto assets to or from the segregated customer cold wallets.

We maintain cold wallets and private key information for the custody of customer crypto assets at a secure

storage facility we operate in Japan where access is strictly limited by multiple levels of security. Release of crypto

assets we maintain from a cold wallet requires use of a private key on a computer that is stored in a fireproof safe in

a dedicated cold wallet room in a building with a reinforced structure and modern earthquake-resistant features.

Separate card key and PIN authorizations are needed to access the cold wallet room and opening of the fireproof

safe. The private key in the computer is encrypted and requires a password for decryption. The decryption is

performed by a tamper-proof program written to a DVD stored with the computer so that the private key stored in

the computer is not directly displayed or disclosed to the person performing the authorization. These multiple

safeguards are designed so that the participation of multiple trusted individuals is necessary for the release of crypto

assets and no single individual is able to authorize release. Individuals entrusted with any role in the process are

limited to senior management personnel of the Company with a tenure of longer than one year. As of March 31,

2025, fewer than 10 members of management are authorized to participate in the release of the crypto assets, as per

our internal practices, and although this number can be increased in line with updates to internal practices we

continue to limit the members of management so authorized for enhanced security. With respect to our crypto assets

which we hold in a hot wallet, release is made using an automated program with the private key stored securely with

our cloud services provider. Transfers are limited to wallets instructed by our trading counterparties. Access to the

private key's secure storage is limited to the same type of personnel as those who have access to our cold wallet

storage and is also designed to require the approval of multiple individuals for any change to the program settings.

All access is logged and reviewed on a periodic basis and our protocols and internal controls over access to

customer crypto assets are subject to assessment as part of our internal and external audit processes. Our

Accounting & Finance Department conducts procedures to compare assets recorded on the blockchain to our

internal database in order to monitor for the accuracy of our records. We also provide our independent auditors with

the addresses of our cold and hot wallets to enable them to verify the existence of cryptocurrencies in the course of

their audit procedures. We do not use an external wallet custodian.

Regarding NFTs, there are no clear legal regulations in Japan as of March 31, 2025 on custody of NFTs,

but according to our internal rules we hold NFTs acquired by customers of our Coincheck NFT Marketplace in hot

wallets on their behalf.

Crypto Assets Held (Borrowed from Customers or Deposited with Counterparties)

The following table shows the total amount of crypto assets held by us (meaning, mainly, borrowed from

customers or deposited with counterparties) as of March 31, 2022, September 30, 2022, March 31, 2023,

September 30, 2023, March 31, 2024, September 30, 2024, and March 31, 2025, broken down by what we hold in

cold wallets, hot wallets, and deposited with counterparties.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **As of** <br>**March 31,** <br>**2022** | **As of** <br>**September 30,** <br>**2022** | **As of** <br>**March 31,** <br>**2023** | **As of** <br>**September 30,** <br>**2023** | **As of** <br>**March 31,** <br>**2024** | **As of** <br>**September 30,** <br>**2024** | **As of** <br>**March** <br>**31, 2025**<br>|
|  | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** |  |
| Crypto assets held (current <br>assets)<br>| 34.1 | 16.4 | 19.0 | 19.3 | 44.2 | 35.6 | 44.7 |
| Amount held in cold wallets | 27.9 | 13.4 | 15.8 | 17.5 | 39.7 | 33.1 | 41.3 |
| Amount held in hot wallets | 3.9 | 1.9 | 2.0 | 1.6 | 3.6 | 2.2 | 3.0 |
| Amount deposited with <br>counterparties<br>| 2.3 | 1.1 | 1.1 | 0.3 | 0.8 | 0.4 | 0.4 |

---

*Insurance Coverage*

As is customary in the Japanese crypto industry, we do not have insurance for customer crypto assets in our

custody or for our own crypto assets. Under our terms of service, in the case of loss or damage caused by our

negligence we are not liable for any damages caused to our corporate users and only liable for the direct damages

caused to our individual users up to the amount of fees paid to us by such individual users. We do, however, have

responsibility for loss or damage incurred by our customers under Japanese law when such damage or loss was

caused by our gross negligence, willful misconduct or fraud. Under Japanese law, liability is limited to monetary

compensation for actual damages, and no punitive damages or liability in excess of the amount of actual damages

may be awarded.

We seek to limit and reduce risk of loss of customer crypto assets, and ours, through our risk management,

internal control, and information protection (including cybersecurity risk) policies and practices, as well as our

compliance with regulatory and self-regulatory rules and standards, described elsewhere in this report.

***Certain Other Features of Our Business***

*Ease of Use*

One of our taglines is "Making the Exchange of New Value Easier," so we aim to provide easy-to-use

services that are safe and secure, including for individuals who are not highly skilled in the areas of finance and

technology. In order to encourage such new users to utilize our crypto asset marketplace services, we provide user

friendly smartphone applications for iOS and Android, enabling users to easily buy, sell, and trade crypto assets.

Convenience is also an important factor, so our users are able to access our cryptocurrency exchanges via

smartphone at any time. For our more advanced users who prefer more robust access to information, advanced

trading tools and a more traditional experience, we offer access to our services through our web browser platform,

which we call "Tradeview."

Opening an account with Coincheck is a simple and straightforward process which can be completed in as

little as one day. Crypto assets can then be traded easily from our smartphone application, and the process to

purchase crypto assets is completed in just a few simple steps: after the user has deposited yen into the account by

bank transfer, from the home screen the user selects the crypto asset to purchase and presses a "buy" button,

specifies the purchase quantity in yen, and then presses "buy" again to complete the purchase order.

We offer several additional useful features for trading, including a widget function that allows users to

check price fluctuations in real time, a chat tool that allows users to communicate with other users participating in

transactions, and a "buy/sell board" that displays transaction status in real time.

*Trading in Small Amounts*

We allow users to trade in amounts as small as ¥500 (or a crypto asset amount equivalent to ¥500), making

it easy for new crypto investors to start trading.

*High Level of Security*

We understand the importance of the security and stability of our crypto asset platforms for the transactions

conducted on them so that our users can buy, sell, and trade crypto assets safely. The following describes several of

our significant security measures:

*Operational and Risk Management Systems*

Under the supervision of our Board and the relevant Board committees, we have established and

continuously review operational and risk management systems to ensure the stability of our platforms, including:

• System risk assessment

• Information security management

• Cybersecurity risk management

• System planning, development, and operation management

• External contractor management

• Contingency plans

Although we comply with regulatory requirements relating to the protection and safety of customer crypto

assets that we hold, these assets are not insured or guaranteed by any government or government agency, and we do

not maintain any insurance for the recovery of any potential loss of such customer assets. For more information on

the regulatory requirements related to customer assets, see "— Regulatory Environment — Regulations on Crypto

Asset Exchange Service."

*Cover Counterparty Risk Management Policies*

As earlier described, we enter sale and purchase transactions with cover counterparties to minimize our

position risk. Our cover counterparties go through extensive risk review as reputable trading parties in the crypto

asset trading business prior to being approved by us. A trading counterparty may be an external exchange, market

maker or broker in crypto assets or a broker connected to multiple OTC crypto asset venues. The counterparties

provide bid ask pricing to us through API feeds for our crypto purchases and sales. The markets created or accessed

by our counterparties are active markets, and the associated activity is orderly and has sufficient volume to have

reliable information and therefore are representative of a fair price in the market. To provide a fair value

representative price to our customers, we use the pricing provided by these counterparties.

Our Dealing Department constantly monitors information with respect to our cover counterparties by

reviewing real-time information about each cover counterparty, as well as the crypto asset community in general, on

social media, including but not limited to X (formerly, Twitter), and other available news sources, such as CoinDesk

and The Block. We also review public proof of reserve transactions on-chain and use on-chain analysis and research

conducted by blockchain analytics platforms, such as Nansen and Defillama, to obtain additional information.

If we receive information that leads to credit concerns about a specific cover counterparty with which we

transact, we would reduce the amount on deposit with such cover counterparty and transfer assets to another cover

counterparty in order to permit uninterrupted execution of cover transactions. Moreover, if we receive information

that could suggest reputational or legal concerns or put into question the ongoing viability regarding a cover

counterparty, we would evaluate such information and concerns and, if we deem it necessary, take measures to

transfer assets deposited with such cover counterparty to another cover counterparty and terminate the relationship

with such cover counterparty.

If we receive information that leads to credit, legal or reputational concerns with cover counterparties for a

particular crypto asset, we would first attempt to use our Exchange platform, or other OTC counterparties that are

capable of netting settlement, to execute cover transactions. If we determine no such alternatives are feasible for a

particular crypto asset, we would then temporarily suspend trading of the crypto asset.

With respect to risk management specifically with respect to crypto asset deposits we make with Binance in

our cover counterparty relationship, in December 2022 we added a function to our internal system in the form of a

Coincheck-initiated immediate withdrawal process on our administrator screen. This withdrawal process allows us at

our discretion to initiate the withdrawal of the balance of our crypto assets deposited with Binance. As of March 31,

2025, Binance has a daily withdrawal limit of $160 million USD (approximately ¥25.5 billion based on exchange

rates as of March 31, 2025), and the value of our crypto assets held on deposit with Binance as of March 31, 2025 is

¥129 million. Under our current internal practices, total assets held on deposit with Binance cannot exceed ¥300

million (approximately $2.0 million based on exchange rates as of March 31, 2025). We are not subject to any other

restrictions with respect to this withdrawal process. However, it is possible that Binance could fail to, or be restricted

from, fulfilling our withdrawal requests. There is not a similar immediate withdrawal process in place for other

cover counterparties (other than Binance) because we believe that the amount of crypto assets deposited with other

cover counterparties, and after taking other relevant facts or factors concerning those cover counterparties into

consideration, do not warrant such a system at this time, but should that change with respect to another cover

counterparty we may decide to set up a similar immediate withdrawal process.

**Our Customers**

We only offer accounts for crypto asset marketplace services to customers resident in Japan. In particular,

we appeal to a younger demographic, with approximately 51% of verified accounts held by customers under 40 as of

March 31, 2025.

***Account Opening Procedures***

A potential customer who wishes to access our platforms (including the Marketplace platform and

Exchange platform) is required to have an active account with Coincheck. The potential customer is required to

accept the terms and conditions provided ("Terms of Service") when opening an account. Any changes made to the

Terms of Service are provided to customers either via email or by posting on our website and the customer

demonstrates acceptance of the modified terms (and is bound by the modified Terms of Service) by continuing to

keep the account open with us and using our services.

Only adults resident in Japan are eligible to open accounts to use our cryptocurrency exchanges. We do not

open accounts for those under 18 years of age or over 75 years of age. We comply with "know-your-customer," or

"KYC," guidelines developed by the JVCEA in order to help ensure compliance with Japanese laws and regulations.

Our KYC process is designed to obtain the necessary information from potential customers while enabling

them to complete the process smoothly using their smartphone. Our KYC procedures include screening to confirm

that a prospective customer is not a person subject to international sanctions regimes, in addition to confirming the

prospective customer resides in Japan.

The account opening process includes:

• Account registration:&nbsp;&nbsp;&nbsp;&nbsp;The prospective customer initiates the account opening process by entering an

email address and password, upon which a link is sent to the prospective customer's email.

• Acceptance of terms:&nbsp;&nbsp;&nbsp;&nbsp;After confirming eligibility as to age and residence in Japan and acceptance of

the account terms, the prospective customer registers a cellphone number and receives an SMS to enter

a code to proceed to the identification verification process.

• Identification verification:&nbsp;&nbsp;&nbsp;&nbsp;The prospective customer then provides the additional personal

information required, selects a form of identification for verification, uploads a picture of the

chosen identification and also uploads a photo for verification.

• Two-step verification:&nbsp;&nbsp;&nbsp;&nbsp;Once identification verification is completed, the potential customer is

prompted to set up two-step verification to provide greater security when using the established account.

We require two-step verification for customers to access their trading accounts.

• Bank account registration:&nbsp;&nbsp;&nbsp;&nbsp;Once an account is approved, the customer is able to register the

customer's own bank account in Japan for deposit and withdrawal of funds. In order to register a

remittance address, we require authentication by email address and SMS in addition to the use

of identification, password and two-step verification at the time of login.

After an account is opened and the customer deposits yen into his or her account by bank transfer, such

amount is held at a segregated deposit with a trust bank. If the customer places a purchase order for a crypto asset,

we instruct the trust bank to transfer the payment amount to our account. The purchased crypto asset is then credited

to the customer's account and held in a cold wallet.

Our KYC team continues to check existing customers against a database of sanctioned persons on an

ongoing basis; our policy is to freeze the applicable account and investigate further in the event of a match. When an

existing customer requests the transfer of crypto assets externally, we also screen any such request against our

"blacklist," which includes wallet addresses that are subject to OFAC sanctions, as well as others that we determine

inappropriate based on information from users, law enforcement and/or our Chainalysis service, and will not make

the requested transfer in the event of a match. For a customer request for the remittal of funds in Japanese yen, such

a transfer can only be made to the customer's bank account in Japan registered by the customer in connection with

its account with us, and transfers are not made to third parties.

***Customer Acquisition and Marketing***

We engage in advertising and promotion with the goal of raising awareness of Coincheck and our services

and to grow our customer base. We utilize primarily digital marketing, both broad-based advertisements on

platforms, such as Facebook and YouTube, and more targeted advertisements on search platforms as well as

affiliated programs. In the two-year period ended March 31, 2022, we also used mass media campaigns such as

television advertisements to raise our brand profile. During the fiscal years ended March 31, 2023 and 2024, we

suspended such mass media campaigns as a cost saving measure, then in May 2024, as market conditions improved,

resumed advertising on television, which we believe contributed, in part, to an increase in mobile app downloads for

the Marketplace platform and otherwise contributed positively to our results during the year ended March 31, 2025.

***Data Collection Practices***

We collect and analyze user data in compliance with relevant Japanese laws including the Act on the

Protection of Personal Information and other applicable laws and regulations. We initially obtain personal

information of our customers in order to complete the KYC procedures described above. Once a customer opens an

account, we monitor all access by our customers via either our smartphone application or our website and obtain

data relevant to the transactions, including the outstanding balance of assets and transaction history. We utilize

commercially available services from companies such as TreasureData, Inc. to analyze user data that we obtain from

our smartphone application or website. We utilize services and tools of TreasureData, Inc. to analyze the number of

active users, rate of users that deposited cash in their accounts and users that have purchased cryptocurrencies.

**Competition** 

We operate in a highly regulated and competitive market in Japan. Markets relating to crypto assets have

been growing quickly and we expect the competitive landscape to continue to rapidly evolve. As of March 31, 2025,

there were 28 crypto asset exchange service providers registered with the JFSA in Japan. Our competitors include

independent providers in Japan, including bitFlyer, GMO Coin, Bitbank, Mercoin and SBI, as well as providers

affiliated with foreign exchanges, including Bit Trade (previously Huobi Japan). In addition, Binance acquired

Sakura Exchange Bitcoin in November 2022 to enter the Japanese market and launched its initial services on its

platform in August 2023, while Coinbase K.K. and Kraken shut down their services in Japan. We compete on

factors including:

• the quality of our user interface for both smartphone and PC users;

• the security of our platforms and reliability of execution;

• our brand strength and reputation; and

• innovation to provide additional products and services of interest to our customers.

**Intellectual Property**

We strive to acquire intellectual property rights related to the services we operate, and we recognize that the

protection of our technology and intellectual property rights is an important aspect of our business. In order to

prevent the infringement of not only our own intellectual property rights but also those of third parties, we conduct

preliminary investigations throughout our company and with legal counsel. We rely on a combination of trademarks,

trade secrets, copyrights, confidentiality procedures, contractual commitments and other legal rights to establish and

protect our intellectual property. We generally enter into agreements with our employees and consultants that

contain confidentiality provisions to control access to our proprietary information.

**Regulatory Environment**

The laws and regulations applicable to our current business and operations are concentrated in Japan.

Based on the manner in which we operate our business, as described here and elsewhere in this report, including our

account opening procedures, we do not believe that we are operating as an unregistered exchange, broker-dealer or

clearing agency in the United States.

***Overview of Regulatory Framework in Japan***

Japan has emerged as one of the largest cryptocurrency markets globally and was the first country to

establish a regulatory framework for cryptocurrencies. In addition to enabling the registration of cryptocurrency

exchange service providers wishing to provide cryptocurrency exchange services to residents in Japan, this

framework seeks to protect customers and to prevent cryptocurrency-related money laundering and terrorism

financing.

However, Japanese law does not have a unified legal framework for digital assets. The legal status of any

given digital asset under Japanese law is determined in accordance with its function and use. In other words, whether

a given digital asset constitutes a "security token" (i.e., ERTRs or ERTRISs under the FIEA) or a "crypto asset" will

be objectively determined based on its functions and uses and the applicable legal analysis thereof. More

specifically, according to the PSA and public comments issued by the JFSA, the definition of crypto assets excludes

ERTRs and ERTRISs. Therefore, to determine the legal status of any given digital asset, we must first determine

that is not an ERTR or ERTRIS, and then assess whether it otherwise satisfies the requirements for a crypto asset

under the PSA. Under the PSA, crypto asset exchange services, or "CAES," means, as further defined later in this

section, any business activity involving the sale, purchase, or exchange of crypto assets, or the intermediation,

brokerage, or agency services related to these activities, including the management of customers' money or crypto

assets in connection with these activities, and a crypto asset exchange service provider is referred to as a "CAESP."

In practice, when a CAESP decides to newly handle a particular digital asset, it will go through the

following three-step process:

(i)&nbsp;&nbsp;&nbsp;&nbsp; The CAESP itself will examine the digital asset in question to confirm that it does not fall within the

category of ERTRs or ERTRISs and is therefore a crypto asset.

(ii)&nbsp;&nbsp;&nbsp;&nbsp;The results of the CAESP's examination will be reported to the JVCEA, Coincheck's self-regulatory

organization. The JVCEA will then review the report to determine the correctness of the analysis therein.

(iii) If the JVCEA determines that the analysis is correct, it will provide its approval thereof, whereupon

the CAESP will submit a notification of change to the JFSA by way of informing the JFSA that the relevant

digital asset will be added to the crypto assets the CAESP is handling.

Should there be any subsequent change to the function or use of the relevant digital asset, its legal status

may change. However, there are no provisions in the PSA, other related laws and regulations, or the JVCEA's self-

regulatory rules, that stipulate who has the authority to make decisions regarding changes in the legal status of

digital assets handled by CAESPs, or the procedures for such changes. In addition, as of the date of this report, there

is no published case in which the handling of any digital asset by CAESPs was discontinued due to a change in the

legal status of such digital asset. We believe that if either the JVCEA or the JFSA has concerns about the legal status

under the PSA of a particular crypto asset handled by one or more CAESPs in Japan, there is a possibility that the

JVCEA or the JFSA would consult with the affected CAESPs in order to determine the appropriate action to take. In

the event a crypto asset were to no longer be supported, we believe the JVCEA's procedures regarding

discontinuation described below would apply.

According to Article 10, Paragraph 1 of the JVCEA "Regulations Concerning Handling of Crypto Assets,"

when a CAESP discontinues the handling of digital assets, the CAESP must notify its users at least 30 days prior to

the date of discontinuation through its website or other means of communication that are easily accessible to users,

together with a public notice of discontinuation based on Article 63-20, Paragraph 3 of the PSA. In addition,

according to Article 10, Paragraph 2 of the same regulation, when making such public notice, the CAESP must

provide the following information to users:

(i)&nbsp;&nbsp;&nbsp;&nbsp; The name of the digital assets to be discontinued ("Discontinued Digital Assets");

(ii)&nbsp;&nbsp;&nbsp;&nbsp;The date of discontinuation;

(iii) The reason for discontinuation;

(iv) The existence or non-existence of other CAESPs handling the Discontinued Digital Assets as of the

date of notification and the name of such CAESPs;

(v)&nbsp;&nbsp;&nbsp;&nbsp;The policy on the return of the Discontinued Digital Assets; and

(vi) Information necessary to return the Discontinued Digital Assets to users.

Additionally, tokens, such as NFTs, that have no economic function as a means of payment because of their

unique characteristics, are not currently regulated under Japanese financial regulations.

Coincheck currently only handles cryptocurrencies, which fall under the category of crypto assets, and

NFTs, which do not fall under the category of either crypto assets or ERTRISs. Therefore, Coincheck is only

registered as a CAESP and not as a Type I FIBO (although it plans to apply for registration as a Type I FIBO later

this year in order to be able to expand the types of products it offers). An outline of the regulations for CAESPs is as

follows.

***Regulations on Crypto Asset Exchange Service***

Under the PSA, a CAESP is required to be registered with the JFSA or is subject to criminal proceedings

and punishment.

The term "crypto asset" is defined in the PSA as a property value that satisfies the following conditions: it

can be used to pay unspecified persons for goods, services, or leases; it can be exchanged with unspecified persons

for fiat currency; it is electronically recorded and transferable; and it is not a fiat currency or a currency-

denominated asset. Essentially, it is a digital asset that functions as a means of payment and exchange, but is not

considered legal tender or directly tied to it.

Under Japanese law, a "crypto asset" is not a "security" as such term is defined in the FIEA.

The term CAES is defined in the PSA to mean any of the following acts carried out as a business:

(a)&nbsp;&nbsp;&nbsp;&nbsp; sale or purchase of crypto assets, or the exchange of a crypto asset for another crypto asset;

(b)&nbsp;&nbsp;&nbsp;&nbsp;intermediating, brokering or acting as an agent in respect of the activities listed in item (a);

(c)&nbsp;&nbsp;&nbsp;&nbsp; management of customers' money in connection with the activities listed in items (a) and (b); or

(d)&nbsp;&nbsp;&nbsp;&nbsp;management of customers' crypto assets for the benefit of another person.

Under the PSA, CAESPs are required to:

(a)&nbsp;&nbsp;&nbsp;&nbsp; take the measures necessary to ensure the safe management of available information;

(b)&nbsp;&nbsp;&nbsp;&nbsp;provide sufficient information to customers;

(c)&nbsp;&nbsp;&nbsp;&nbsp; take the measures necessary for the protection of customers and the proper provision of services;

(d)&nbsp;&nbsp;&nbsp;&nbsp;segregate the property of customers from their own property and subject the segregation to regular

audits by a certified public accountant or audit firm; and

(e)&nbsp;&nbsp;&nbsp;&nbsp; establish internal management systems to enable the provision of fair and appropriate responses to

customer complaints, and implement measures for the resolution of disputes through alternative dispute

resolution proceedings.

With respect to item (b), a CAESP is required to explain certain matters (such as the fact that the crypto

assets do not constitute Japanese yen or any other foreign currency) to users in advance before conducting crypto

asset trading for users.

Also, a CAESP is required to provide certain information to users in advance before providing CAES to

users. Such information includes:

(i)&nbsp;&nbsp;&nbsp;&nbsp; its trade name and address;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;its registration number;

(iii) the content of transactions;

(iv) an outline of every crypto asset it handles; and

(v)&nbsp;&nbsp;&nbsp;&nbsp;its fees and other charges.

Additionally, when a CAESP receives cash or crypto assets from its users, it must provide the users with

the following information without delay:

(i)&nbsp;&nbsp;&nbsp;&nbsp; its trading name and registration number;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;the amount of cash or crypto assets received; and

(iii) the date of receipt of such cash or crypto assets.

Furthermore, when a CAESP conducts crypto asset transactions with users on an ongoing basis, it must

provide users, at least once every quarter, with records of its transactions with users, and the balances of the user's

cash and crypto assets that are managed by the service provider.

With respect to item (d) above, a CAESP that manages users' fiat currency and crypto assets must

segregate such users' property from its own property. For purposes of fiat currency management, such currency

must be held in trust with a trust bank or trust company for protection against the CAESP's bankruptcy. In the area

of crypto asset management, stringent rules, as set forth below, have been put in place to protect users from losses of

crypto assets and from the bankruptcy of a CAESP:

• a CAESP must manage users' crypto assets deposited by users ("Deposited Crypto Assets") and its

own crypto assets in separate wallets;

• a CAESP must manage at least 95% of the Japanese yen equivalent amount of the total Deposited

Crypto Assets in cold wallets;

• a CAESP that manages less than 5% of the Japanese yen equivalent amount of the total Deposited

Crypto Assets in a wallet other than a cold wallet (i.e., in hot wallets) must manage the same type and

amount of its own crypto assets ("Redemption Guarantee Crypto Assets") in a cold wallet to protect

users against the risk of loss of crypto assets from the hot wallets; and

• users will have preference rights to repayment over the Deposited Crypto Assets and Redemption

Guarantee Crypto Assets (Article 63-19-2 of the PSA). Such priority security interest is specifically

stipulated in the PSA, because it is not clear whether bankruptcy segregation would be effective for

Deposited Crypto Assets and Redemption Guarantee Crypto Assets in the event of the failure of such

CAESP. Therefore, Article 63-19-2 of the PSA allows users the right to receive repayment of

Deposited Crypto Assets and Redemption Guarantee Crypto Assets in advance of other creditors in

preparation for the risk of failure of CAESPs.

If an individual affiliated with a CAESP fails to properly segregate users' fiat currency or crypto assets, he/

she can face punishment including confinement punishment (koukin-kei) for not more than two years, a fine of not

more than three million yen, or both, and the CAESP itself can also be subject to a fine of not more than three

hundred million yen. In addition, if an individual affiliated with a CAESP fails to hold Redemption Guarantee

Crypto Assets in violation of the PSA or violates its obligation to segregate Redemption Guarantee Crypto Assets,

he/she can face punishment including confinement punishment (koukin-kei) for not more than two years, a fine of

not more than three million yen, or both, and the CAESP itself can also be subject to a fine of not more than three

hundred million yen.

***Self-Regulatory Organization and Self-Regulatory Rules on Crypto Asset Exchange Service Providers***

For purposes of securing proper implementation of CAES and protection of users of CAESPs, the JVCEA

has been appointed as an approved self-regulatory organization under the PSA. The JVCEA establishes its own rules

(the "SRO Rules") and members of the JVCEA are required to comply with the SRO Rules in addition to the PSA

and other applicable regulations.

The primary activities of the JVCEA are as follows:

• establishing self-regulatory rules;

• inspecting CAESPs and other members for compliance with the SRO Rules and applicable laws and

regulations;

• providing guidance, recommendations and rulings to its members;

• providing business consulting services to its members;

• handling complaints from users of its member services;

• providing information to its members; and

• conducting statistical surveys.

• In particular, the SRO Rules regulate the policies and activities of its members in the following areas:

• management and internal control;

• management of system risks and cyber security;

• anti-money laundering and counter-terrorism financing;

• handling of new crypto assets;

• management of advertisement or solicitation by crypto assets-related businesses; and

• management of unfair transactions using Crypto Asset-Related Information.

"Crypto Asset-Related Information" is defined by JVCEA as a concept equivalent to material information

and insider information regarding securities, but for crypto assets and Crypto Asset Derivative Transactions. The

term "Crypto Asset Related Information" refers to the information regarding the crypto assets handled or to be

handled by CAESPs, and undisclosed information about such CAESPs, that is considered to influence decisions of

their users to purchase or sell crypto assets with fiat currencies or to exchange them with other crypto assets.

Under the PSA, the JVCEA, which is a certified fund settlement operators association, is under the

guidance and supervision of the JFSA (Articles 95 and 96 of the PSA). In addition, the governance of the JVCEA

requires that self-regulatory rules be established with the involvement of numerous parties, including the board of

directors, committees, and secretariat (Articles 39, 44, and 54 of the JVCEA Articles of Incorporation). Therefore,

even the representative director of the JVCEA cannot establish self-regulatory rules that include the screening

process and guidelines for crypto assets in a manner that favors individual companies.

In addition, according to Article 93 of the PSA, executives and employees of the JVCEA, or those who

have held these positions in the past, are obliged to keep the confidentiality of secrets obtained in connection with

their duties, to prevent leaks, and to refrain from the use of information for any other purpose. Furthermore, in the

event of a violation of these obligations, an individual would be subject to confinement punishment (koukin-kei) for

not more than one year or a fine of not more than ¥500,000 (Article 111 of the PSA).

Therefore, it is prohibited for Satoshi Hasuo, as a director of the JVCEA (who is also Coincheck's

Chairman, Representative Director and Executive Officer), to use information obtained in connection with his duties

at the JVCEA for any purpose other than the association's business, and to act against the interests of other member

CAESPs.

The JVCEA secretariat, which is established under the JVCEA Articles of Incorporation, handles most of

the JVCEA's business as a self-regulatory organization. The JVCEA secretariat does not disclose information

regarding the operations of individual member CAESPs or information regarding examinations related to the

handling of individual crypto assets, except when necessary or unavoidable, in order to avoid any conflict of interest

due to such dual positions.

Under the PSA, a CAESP that proposes to handle a new crypto asset is required to notify the JFSA in

advance. Additionally, the JVCEA requires all member CAESPs wishing to deal in a new crypto asset to first

conduct an internal assessment of the new crypto asset and to submit an assessment report to the JVCEA for its

review. As no new crypto asset can be handled if the JVCEA raises any objection (including the setting or

modification of incidental conditions for handling of crypto assets, hereinafter referred to as the "JVCEA Pre-

Assessment"), a member is effectively required to obtain the JVCEA's approval before it can begin handling a new

crypto asset.

Under the SRO Rules, member CAESPs must consider the characteristics of the crypto assets to be handled

and carefully assess the appropriateness of handling such crypto assets if any of the following applies:

(a)&nbsp;&nbsp;&nbsp;&nbsp; the crypto assets are being used or will likely be used in a manner that violates applicable laws and

regulations or public order and morals;

(b)&nbsp;&nbsp;&nbsp;&nbsp;the crypto assets are being used or will likely be used for criminal purposes; or

(c)&nbsp;&nbsp;&nbsp;&nbsp; the crypto assets are used or will likely be used for money laundering or terrorist financing.

Additionally, the SRO Rules prohibit member CAESPs from handling crypto assets to which any of the

following applies, based on assessment of the characteristics of the crypto assets to be handled and the system of the

relevant member CAESPs themselves:

(a)&nbsp;&nbsp;&nbsp;&nbsp; crypto assets in respect of which the transfer, updating, or maintenance of ownership records involves

serious impediments or raises serious concerns;

(b)&nbsp;&nbsp;&nbsp;&nbsp;crypto assets for which the member CAESP is unable or unwilling to arrange for the conduct of an

appropriate audit by a chartered accountant or an audit firm;

(c)&nbsp;&nbsp;&nbsp;&nbsp; crypto assets that cannot or will not be safely managed or disbursed by the relevant member CAESPs

in a systematic or other manner; or

(d)&nbsp;&nbsp;&nbsp;&nbsp;in addition to the above, crypto assets that make it impossible or impractical for the relevant member

CAESPs to properly and reliably comply with their obligations under the PSA.

As of June 2, 2025, there are 103 types of crypto assets being handled by CAESPs.

In addition, as of December 26, 2022, the JVCEA SRO Rules were amended to establish (i) the Green List

System which exempts certain member CAESPs (Green List Eligible Members) from the JVCEA Pre-Assessment

for crypto assets designated by the JVCEA, and (ii) the Crypto Asset Self Check System (CASC System) which

exempts certain member CAESPs (CASC Eligible Members) from the JVCEA Pre-Assessment except in specific

cases. Under the Green List System, crypto assets that meet all of the following four criteria are designated by the

JVCEA as "crypto assets widely handled in Japan" on its webpage and the JVCEA Pre-Assessment is not required

for such crypto assets when a Green List Eligible Member handles them:

(a)&nbsp;&nbsp;&nbsp;&nbsp; Crypto assets that have been handled by three or more member CAESPs;

(b)&nbsp;&nbsp;&nbsp;&nbsp;Crypto assets that have been handled by one member CAESP for at least six months;

(c)&nbsp;&nbsp;&nbsp;&nbsp; Crypto assets for which the JVCEA has not set ancillary conditions for handling; and

(d)&nbsp;&nbsp;&nbsp;&nbsp;Crypto assets that have not been deemed inappropriate for the Green List System by the JVCEA for

any other reason.

Taking into account the above, we note that the Green List System does not require the JVCEA Pre-

Assessment only for "crypto assets widely handled in Japan," while the JVCEA Pre-Assessment is still required for

other crypto assets in the same manner as before (except for the CASC System). As of June 2, 2025, 30 tokens are

designated by the JVCEA as "crypto assets widely handled in Japan" on its webpage.

Additionally, the JVCEA Pre-Assessment is required only with respect to crypto assets being handled for

the first time in Japan. However, for other crypto assets, the JVCEA Pre-Assessment is not required for a Green List

Eligible Member or a CAESP Eligible Member.

We are currently authorized by the JVCEA as a Green List Eligible Member and a CASC Eligible Member.

We are still required to provide advance notice to the JFSA of our intention to support trading in a particular crypto

asset. These steps are in addition to the other risk assessments and business judgments made by us.

***Regulations on Anti-Money Laundering and Counter-Terrorism Financing on Crypto Asset Exchange Service***

***Providers***

To prevent crypto asset-related money laundering (AML) and terrorism financing, the Act on Prevention of

Transfer of Criminal Proceeds (the "APTCP") requires exchange providers to implement "know-your-customer," or

"KYC" and other preventative measures. The APTCP applies to registered CAESPs, and generally requires them to:

(a)&nbsp;&nbsp;&nbsp;&nbsp; verify and record the identity of customers when conducting certain transactions (that is, to

implement the KYC process);

(b)&nbsp;&nbsp;&nbsp;&nbsp;record transactions with customers;

(c)&nbsp;&nbsp;&nbsp;&nbsp; report suspicious transactions to the JFSA; and

(d)&nbsp;&nbsp;&nbsp;&nbsp;take measures to keep information regarding customer verification up to date, provide education and

training for employees, and develop other systems necessary for the proper conduct of the processes

described in items (a) to (c).

Under the APTCP, CAESPs must conduct the KYC process when undertaking any of the following:

(a)&nbsp;&nbsp;&nbsp;&nbsp; executing a master agreement with a customer for providing that customer with regular CAES,

management and similar services in respect of his or her money or crypto assets;

(b)&nbsp;&nbsp;&nbsp;&nbsp;transferring crypto assets into funds or exchanging them for other kinds of assets (or transactions

similar thereto), where the receipt and payment of crypto assets exceeding ¥100,000 in value is involved; or

(c)&nbsp;&nbsp;&nbsp;&nbsp; where the exchange provider manages a customer's crypto assets, transferring the crypto assets at the

customer's request if their value exceeds ¥100,000.

***Travel Rules under Japanese Law***

Under the new travel rules introduced in accordance with the Revised Act on Prevention of Transfer of

Criminal Proceeds (the "Revised APTCP") which came into effect on June 1, 2023, CAESPs are required to notify

other CAESPs located in Japan and the prescribed jurisdictions (collectively, the "VASPs") of certain information

(including information of the sender and recipient in connection with the transfer of crypto assets) (the "Transfer

Information") when sending crypto assets to another VASP according to Article 10-5 of the Revised APTCP.

The prescribed jurisdictions, designated by the JFSA, currently are the United States, Albania, Israel,

Canada, the Cayman Islands, Gibraltar, Singapore, Switzerland, Serbia, the Republic of Korea, Germany, the

Bahamas, the Bermuda Islands, the Philippines, Venezuela, Hong Kong SAR, Malaysia, Mauritius, Liechtenstein,

Luxembourg, the United Arab Emirates, India, Indonesia, the United Kingdom, Estonia, Nigeria, Bahrain and

Portugal.

The list of VASPs in the prescribed jurisdictions (the "Subject VASPs") is researched and published by the

JVCEA, and is subject to update approximately once every six months, and we are required to monitor the list and

update its system in accordance with such periodic updates. Additionally, a new jurisdiction may also be added to

the prescribed jurisdictions by the JFSA from time to time.

*Travel Rules Solutions*

In order to send the Transfer Information to the Subject VASPs, an information transfer system (the

"Transfer System") must be utilized. Although various types of Transfer Systems are currently available to the

VASPs in the market, none of them are compatible with other types of Transfer Systems. Accordingly, Transfer

Information can only be exchanged between VASPs using the same Transfer System and, as a result, CAESPs can

only transfer crypto assets to a Subject VASP that has adopted the same Transfer System.

Moreover, notifications of the Transfer Information are only available for transfers of crypto assets that are

supported by the Transfer System. As a result, the crypto assets that can be transferred under the travel rules are

limited to such crypto assets.

We have adopted a system called "Travel Rule Universal Solution Technology" ("TRUST"), which has

been adopted by us as well as other CAESPs in Japan. Among the crypto assets handled by us, as of May 13, 2025

TRUST only supported BTC, ETH, LSK, BAT, ENJ, SAND, FNCT, CHZ, LINK, DAI, MKR, AXS, APE, IMX,

WBTC, SHIB, PEPE, MASK, MANA, and GRT.

*Impact on Business*

As stated above, under the new travel rule, we are currently restricted from sending crypto assets to

CAESPs in Japan, except for those that have adopted the TRUST system. In addition, some of the crypto assets we

handle are currently not supported by TRUST. Although we have not observed any adverse impact to our businesses

(including OTC trading services and exchange services) since the Revised APTCP came into effect, customers may

stop using our services due to the inconvenience, which in turn may have an adverse impact on our business in the

future.

***Regulations on Initial Coin Offerings***

There are various types of tokens issued by way of initial coin offerings ("ICOs"), and Japanese regulations

applicable to ICOs vary according to the respective schemes. If a token falls within the definition of crypto asset,

crypto asset regulations under the PSA will apply. In Japan, (i) if tokens issued via ICOs are already handled by

Japanese or foreign exchanges, such tokens would constitute crypto assets under the PSA based on the rationale that

exchange markets for such tokens must already be in existence, and (ii) (in cases where tokens are not yet handled

by Japanese or foreign exchanges) if the token issuer does not impose substantial restrictions on the exchange of

such tokens with Japanese or foreign fiat currencies or crypto assets, such tokens would likely also constitute crypto

assets under the PSA.

In addition, the JVCEA has published SRO Rules and guidelines regarding ICOs for crypto asset-type

tokens, entitled "Rules for Selling New Crypto Assets" (the "ICO Rules"). Under the ICO Rules, there are two types

of ICOs, which can be described as follows: (i) a CAESP issues new tokens and sells such tokens by itself; or (ii) a

token issuer delegates CAESPs to sell the newly issued tokens (IEOs). Under the ICO Rules, the following

requirements have to be met for both types of ICO:

• a system for the review of a targeted business that raises funds via ICO/IEO must be established;

• information in respect of the token, the proposed use of proceeds raised from the ICO/IEO, and the

like, must be disclosed;

• management of funds (both fiat and crypto assets) raised from the ICO/IEO must be segregated;

• there must be proper account processing and financial disclosure of funds raised from the ICO/IEO;

• there must be assurance of the safety of the newly issued tokens, and the relevant blockchain, smart

contract, wallet tool, and the like; and

• there must be proper valuation of the newly issued tokens.

Furthermore, any tokens supported for trading on CAESPs through an IEO are subject to substantially the

same screening process by such CAESPs and the JVCEA as applied to other crypto assets handled by the CAESPs

to confirm that they do not fall within the category of ERTRs or ERTRISs.

***Regulations Governing Crypto Asset Derivatives Transactions***

The FIEA regulates derivative transactions that use crypto assets as underlying assets ("Crypto Asset

Derivatives Transactions") for the purpose of protecting users and ensuring that such transactions are conducted

appropriately. As Crypto Assets are included in the definition of "Financial Instruments" under the FIEA, the

conduct of Over-the-Counter Derivatives Transactions relating to Crypto Assets ("OTC Crypto Asset Derivatives

Transactions") or related intermediary (baikai) or brokerage (toritsugi) activities constitute Type I financial

instruments business. Accordingly, business operators engaging in OTC Crypto Asset Derivatives Transactions are

required to undergo registration as Type I FIBOs.

Any entity that intends to be a Type I FIBO is required to meet certain asset requirements, including

having:

(i)&nbsp;&nbsp;&nbsp;&nbsp; a stated capital of at least ¥50 million;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;net assets of at least ¥50 million; and

(iii) a capital-to-risk ratio of at least 120%.

Coincheck does not currently offer OTC Crypto Asset Derivatives Transactions.

***Prohibitions Against Unfair Acts in Respect of Spot Trading of Crypto Assets or Crypto Asset Derivative***

***Transactions***

The FIEA contains the following prohibitions against unfair acts (the conduct of which is punishable by

penalties) in respect of spot trading of crypto assets and Crypto Asset Derivative Transactions, regardless of the

violating party:

• prohibition against wrongful acts;

• prohibition against dissemination of rumors, usage of fraudulent means, assault or intimidation; and

• prohibition against market manipulation (including, but not limited to, conducting a false purchase and

sale of crypto assets (i.e., wash trading of crypto assets)).

In addition, unfair transactions involving these crypto assets and Crypto Asset Derivative Transactions are

also regulated by the JVCEA SRO Rules entitled "Regulations Concerning Prevention of Unfair Transactions in

Crypto Asset Exchange Business" and "Regulations Concerning Prevention of Unfair Transactions in Crypto Asset

Related Derivative Transaction Business." Specifically, the JVCEA SRO Rules require CAESPs to establish the

following systems and measures to prevent unfair transactions by CAESPs:

• establishment of a "trade monitoring department" independent from an order management department;

• establishment of internal rules to prevent unfair transactions (including, but not limited to, prohibition

of front running); and

• conducting transaction monitoring for unfair transactions based on the relevant internal rules.

These prohibitions and JVCEA SRO Rules are intended to enhance the protection of users and to prevent

unjust enrichment.

Although insider trading of crypto assets and Crypto Asset Derivative Transactions is currently not

regulated under the FIEA, insider trading of crypto assets is regulated under the Regulations Concerning the

Establishment of a Management System for Crypto Asset-Related Information Pertaining to the Crypto Asset

Exchange Business of the JVCEA SRO Rules, and insider trading of Crypto Asset Derivative Transactions is

regulated under the Regulations Concerning the Establishment of a Management System for Crypto Asset-Related

Information Pertaining to the Crypto Asset-Related Derivatives Transaction Business of the JVCEA SRO Rules.

Specifically, the JVCEA SRO Rules define "Crypto Asset-Related Information" as a concept equivalent to insider

information of crypto assets and Crypto Asset Derivative Transactions. The term "Crypto Asset Related

Information" refers to the information regarding the crypto assets handled or to be handled by CAESPs or to the

undisclosed information about such CAESPs, that is considered to influence decisions of their users to purchase or

sell crypto assets with fiat currencies or to exchange them with other crypto assets. The JVCEA SRO Rules require

CAESPs to establish the following systems and measures to prevent insider trading by CAESPs using Crypto Asset-

Related Information:

• establishment of an "information management department" independent from a sales department and

an order management department, which oversees and manages the Crypto Asset-Related Information

acquired by CAESPs;

• establishment of internal rules to prevent inappropriate use of Crypto Assets-Related Information;

• reporting of any acquisition of Crypto Asset-Related Information by officers or employees of CAESPs

to the information management department;

• proper management of Crypto Asset-Related Information;

• prohibition of communication of Crypto Asset-Related Information by officers or employees of

CAESPs to third parties for their own or third parties' benefit;

• prohibition of solicitation of transactions by officers and employees of CAESPs providing Crypto

Asset-Related Information; and

• prohibition of proprietary trading by officers and employees of CAESPs using Crypto Asset-Related

Information.

To stay in compliance with the JVCEA SRO Rules, we have established internal rules with regard to

information management as well as crypto asset trading restrictions, including Rules Concerning the Examination of

Transactions to Prevent Unfair Trading and a Procedures Manual for Trade Screening, and monitor trading activities

by our employees.

***Non-Fungible Tokens***

Under the current financial regulations in Japan, NFTs are not generally regulated and are not deemed

crypto assets under the PSA. Therefore, NFTs are not subject to the custody rules applicable to crypto assets. In

addition, NFTs would not constitute securities or ERTRISs, under the FIEA if their holders do not share in profits or

receive dividends in respect of the NFTs. Our process for approving the listing of NFTs on Coincheck NFT

Marketplace includes confirming that the NFTs are neither crypto assets under the PSA nor ERTRISs under the

FIEA, but our determination is not binding on regulatory authorities or courts in Japan (see also "Risk

Factors — Risks Relating to Our Business, the Crypto Industry, and Crypto Assets — We also operate Coincheck

NFT Marketplace, which may expose us to legal, regulatory, and other risks that could adversely affect our business,

operating results, and financial condition.").

**C.Organizational Structure**

We are a holding company domiciled in the Netherlands, and our only material assets are the capital stock

of our wholly owned subsidiaries, mainly Coincheck. Our operating subsidiaries are listed under Exhibit 8.1 filed

herewith.

We lease office space for our headquarters in Amsterdam, the Netherlands, and we also lease office space

in Tokyo, Japan, for our operating subsidiaries. We believe that our facilities are adequate and suitable to meet our

needs for our business as currently conducted.

**Item 4. AUnresolved Staff Comments**

None.

**Item 5. Operating and Financial Review and Prospects**

*Unless the context otherwise requires, all references in th*is section to the "Company," "we," "us," or "our"

refer to Coinch*eck, Inc. prior to the closing of the Business Combination and Coincheck Group N.V. and* 

*subsidiaries after closing.*

*The following discussion of our financial condition and results of operations should be read in conjunction* 

*with the financial statements and related notes included elsewhere in this report. Our financial statements are* 

*prepared in accordance with IFRS Accounting Standards, which differs in certain significant respects from* 

*accounting principles generally accepted in other jurisdictions, including U.S. GAAP and Japanese GAAP. In* 

*addition to historical financial information, the following discussion contains forward-looking statements that* 

*reflect our plans, estimates, and beliefs that involve risks and uncertainties. Our actual results could differ* 

*materially from those discussed in the forward-looking statements as a result of many factors, including those* 

*factors in this report set forth in the sections titled "CAUTIONARY STATEMENT REGARDING FORWARD-*

*LOOKING STATEMENTS" and "Item 3.D: Risk Factors," which you should review for a discussion of some of the* 

*factors that could cause actual results to differ materially from the results described in or implied by the forward-*

*looking statements contained in the following discussion and analysis and elsewhere in this report.*

**Overview**

We believe we are a leader in the Japanese cryptocurrency industry for providing a crypto asset

marketplace to retail investors. We offer our retail customers a multi-cryptocurrency marketplace, which we

sometimes call our Marketplace platform business, where most of the time upon our platform identifying offsetting

customer orders (or otherwise verifying sufficient liquidity) to manage our risk, we are the seller or buyer against

our customers' executed orders. Our customers may also use our Exchange platform, which is targeted at more

experienced cryptocurrency investors, where we do not act as buyer or seller, but only facilitate order books through

which the buyer and seller transact directly with each other. We sometimes make purchases on the Exchange

platform to support liquidity for our transactions on the Marketplace platform. On both platforms, in the aggregate

(excluding purchases we make on the Exchange platform), we had as of March 31, 2025, according to the JVCEA, a

24.9% market share in Japan by trading volume. We also had, according to the JVCEA, 18.5% of the market share

for retail users by number of verified users in Japan.

As of March 31, 2025, our number of verified users exceeded 2.3 million, with approximately 51.0% of

those accounts held by customers under age 40. Each verified user has one customer account, which we sometimes

call a verified account.

For the years ended March 31, 2025 and 2024, 99.6% and 99.6%, respectively, of our total revenue

consisted of transaction revenue generated from the Marketplace platform. We offer 30 different crypto assets on

our Marketplace platform as of March 31, 2025. As of March 31, 2025, more than 90% of our users utilize our

mobile trading application for our Marketplace platform, while the remaining users utilize our desktop trading

application. We generally do not charge commissions or fees for use of our Exchange platform.

We believe that we are one of the leading innovators in the Japanese crypto markets. In 2021, we

introduced our Coincheck NFT Marketplace platform and also conducted Japan's first approved IEO.

The growth of crypto assets and crypto markets has come in waves, typically aligned with crypto asset

price cycles, which tend to be volatile and draw new customers, investments, and developers into the crypto

ecosystem. For example, according to closing day pricing information from CoinMarketCap, as the price of Bitcoin

surged from approximately ¥432 thousand during March 2020 to all-time highs of more than ¥7,500 thousand in

November 2021, we experienced a corresponding increase in the usage on our Marketplace platform. However, the

price of Bitcoin subsequently declined to approximately ¥5,546 thousand as of March 31, 2022 and further to

approximately ¥3,781 thousand as of March 31, 2023. We believe these price trends, along with broader

uncertainties in the global crypto markets, adversely affected trading volume on our Marketplace platform during the

fiscal year ended March 31, 2023, leading to a sharp decline in total revenue and recognition of a net loss for that

fiscal year. Then, the price of Bitcoin rebounded to approximately ¥10,801 thousand during the fiscal year ended

March 31, 2024, which we believe contributed to our increase in total revenue and return to profitability for that

year. For the fiscal year ended March 31, 2025, the price of Bitcoin reached a new all-time high of ¥17,041 thousand

in January 2025. Although the price of Bitcoin later declined to approximately ¥12,382 thousand as of March 31,

2025, this rise in price earlier in the year appears to have been a factor in our increased revenue for the year.

There have been a number of major crypto asset price cycles over the past decade, and price cycles

continue to be volatile. Due to the highly volatile nature of crypto asset prices and trading activity, historically our

operating results have fluctuated significantly from quarter to quarter in line with market sentiment and trading

activity.

![](cnck-20250331_g8.gif)

<sup>1</sup> *Customer Assets are determined in accordance with Japanese generally accepted accounting principles* 

*(J-GAAP), which are cryptocurrencies deposited by customers + fiat currency deposited by customers. Customer* 

*assets are derived from monthly data prepared for management for purposes of understanding internal performance* 

*metrics, and such figures are not prepared under IFRS Accounting Standards basis. Customer assets do not include* 

*NFTs. We have historically published our KPI presentations for customer assets on this J-GAAP basis; however,* 

*prior to our retroactive adoption of SAB No. 122, which rescinded SAB No. 121, Accounting for Obligations to* 

*Safeguard Crypto-Assets an Entity Holds for Platform Users, discussed later in this report, for our prior* 

*consolidated financial statements safeguard assets were calculated in accordance with IFRS Accounting Standards* 

*and SAB No. 121.*

<sup>2</sup> *Exchange trading volume includes trading between matched sellers and purchasers but does not include* 

*transactions in which we are a party (including our transactions with cover counterparties). Monthly exchange* 

*trading volume data reflects trading volume by sellers and purchasers on a gross basis, and is based on information* 

*that we are required to prepare for purposes of monthly reporting to the JVCEA using the calculation methods they* 

*prescribe.*

As of March 31, 2025 our customer assets<sup>1</sup> were ¥859 billion, and our marketplace trading volume during

the year ended March 31, 2025, was ¥337.5 billion.

For the year ended March 31, 2025, our total revenue was ¥383,330 million; our net loss was ¥14,350

million; EBITDA, a non-IFRS measure, was a loss of ¥12,603 million; and Adjusted EBITDA (which excludes cash

and non-cash expenses related to the Business Combination and Coincheck Parent's listing on Nasdaq), a non-IFRS

measure, was ¥5,718 million. For the year ended March 31, 2024, our total revenue was ¥224,049 million; our net

profit was ¥1,967 million; EBITDA, a non-IFRS measure, was ¥3,525 million; and Adjusted EBITDA, a non-IFRS

measure, was ¥3,773 million. See "— Key Business Metrics and Trends — Non-IFRS Financial Measures" below

for information regarding our use of EBITDA and Adjusted EBITDA and a reconciliation of net profit, the most

directly comparable IFRS measure, for the year to EBITDA and Adjusted EBITDA.

**Monthly KPIs**

The below table shows monthly operating data<sup>2</sup> from April 2022 through June 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  | April | May | June |
|  | | | | 2022 | 2022 | 2022 |
|  |  |  |  | (In millions, except number of verified <br>users) | (In millions, except number of verified <br>users) | (In millions, except number of verified <br>users) |
| Exchange trading volume |  |  |  | ¥247,033 | ¥323,442 | ¥289,704 |
| Marketplace trading volume |  |  |  | ¥18,822 | ¥26,171 | ¥19,007 |
| Customer assets |  |  |  | ¥399,143 | ¥317,567 | ¥233,411 |
| Number of verified users |  |  |  | 1643603 | 1676509 | 1705307 |
|  | July | August | September | October | November | December |
|  | 2022 | 2022 | 2022 | 2022 | 2022 | 2022 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥300,918 | ¥244,844 | ¥210,837 | ¥181,739 | ¥224,326 | ¥86,479 |
| Marketplace trading volume | ¥12,639 | ¥11,335 | ¥11,190 | ¥8,120 | ¥11,917 | ¥7,597 |
| Customer assets | ¥291,546 | ¥265,504 | ¥279,614 | ¥289,276 | ¥231,625 | ¥210,172 |
| Number of verified users | 1718174 | 1730890 | 1749692 | 1758732 | 1770108 | 1775420 |
|  | January | February | March | April | May | June |
|  | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥127,100 | ¥155,880 | ¥246,434 | ¥161,783 | ¥149,721 | ¥180,540 |
| Marketplace trading volume | ¥8,269 | ¥8,208 | ¥13,818 | ¥10,699 | ¥7,872 | ¥11,659 |
| Customer assets | ¥268,980 | ¥292,649 | ¥343,964 | ¥350,923 | ¥339,193 | ¥362,197 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Number of verified users | 1784789 | 1791980 | 1802203 | 1810351 | 1820242 | 1830148 |
|  | July | August | September | October | November | December |
|  | 2023 | 2023 | 2023 | 2023 | 2023 | 2023 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥153,038 | ¥135,467 | ¥107,178 | ¥196,953 | ¥264,854 | ¥291,973 |
| Marketplace trading volume | ¥14,361 | ¥11,060 | ¥9,140 | ¥16,365 | ¥18,190 | ¥24,101 |
| Customer assets | ¥377,832 | ¥345,869 | ¥350,550 | ¥413,291 | ¥440,819 | ¥468,415 |
| Number of verified users | 1844687 | 1855980 | 1864765 | 1872825 | 1884184 | 1898785 |
|  | January | February | March | April | May | June |
|  | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥343,495 | ¥368,271 | ¥625,318 | ¥463,858 | ¥314,753 | ¥271,697 |
| Marketplace trading volume | ¥24,808 | ¥31,101 | ¥55,205 | ¥28,222 | ¥23,112 | ¥21,658 |
| Customer assets | ¥476,125 | ¥669,685 | ¥744,197 | ¥658,149 | ¥736,853 | ¥747,891 |
| Number of verified users | 1915646 | 1935987 | 1981152 | 2014832 | 2040838 | 2060379 |
|  | July | August | September | October | November | December |
|  | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥371,801 | ¥411,847 | ¥278,984 | ¥324,265 | ¥728,270 | ¥621,559 |
| Marketplace trading volume | ¥22,724 | ¥18,992 | ¥13,412 | ¥18,916 | ¥50,404 | ¥48,116 |
| Customer assets | ¥750,366 | ¥635,917 | ¥669,357 | ¥735,675 | ¥1,106,754 | ¥1,142,223 |
| Number of verified users | 2077756 | 2090251 | 2100374 | 2110974 | 2152448 | 2197619 |
|  | January | February | March | April | May | June |
|  | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) | (In millions, except number of verified users) |
| Exchange trading volume | ¥595,094 | ¥410,135 | ¥454,277 | ¥366,050 | ¥375,677 | ¥310,449 |
| Marketplace trading volume | ¥46,700 | ¥25,629 | ¥19,637 | ¥21,673 | ¥21,333 | ¥18,525 |
| Customer assets | ¥1,285,614 | ¥873,795 | ¥859,204 | ¥886,884 | ¥989,365 | ¥1,000,300 |
| Number of verified users | 2258295 | 2278320 | 2291103 | 2302376 | 2325978 | 2351223 |

---

**Key Business Metrics and Trends**

In addition to our financial results, we use these business metrics, and some of the components of them

described below, to evaluate our business, measure our performance, identify trends affecting our business, and

make strategic decisions:

***Verified Users***

Verified users represent users who have fully completed the account-opening application procedures,

including KYC procedures, with us. Accordingly, there should only be one account per user (which we sometimes

refer to as a verified account). The verified user total is adjusted for accounts that are subsequently closed, but not

for those that are inactive. Our verified users increased sequentially for all quarters primarily due, we believe, to

growth in our products and services and the overall increase in interest in BTC, Ethereum, XRP and other crypto

assets in Japan. As of March 31, 2025, our number of verified users was approximately 2.3 million. Verified user

metrics are used as a key performance indicator in our business management process because our current businesses

principally serve retail users. We are able to compare our number of verified users against industry data compiled by

the JVCEA to assess our competitive position. Our definition of verified users may be revised in the future if the

industry data or metric used changes or there are changes in Japanese rules regarding approval of new users or

accounts and how that should be defined.

<u>Verified Users</u>

![CNCK Mar.25 Item 5. Verified users.jpg](cnck-20250331_g9.jpg)

Source: Public information made available by the JVCEA.

***Monthly Users***

Monthly users represent our verified users with at least one transaction (a purchase, sale, deposit or

withdrawal) on either our Marketplace or Exchange platform in the prior calendar month. We view them as the

active users on our cryptocurrency exchanges. Monthly users drive retail trading volume, and growth in our monthly

users has historically been correlated with both the price of Bitcoin, Ethereum, XRP and other crypto assets and

volatility within the crypto asset market. We have aimed to expand our revenue opportunities by, in recent years,

adding new cryptocurrencies to give more investment options and by marketing cryptocurrency trading to retail

investors. Our number of monthly users was on a declining trend since its peak in the first quarter of the fiscal year

ended March 31, 2022 (April - June 2021); however, beginning in the third quarter of the fiscal year ended

March 31, 2024, we have seen an increase in our number of monthly users. Our number of average monthly users

was approximately 146,200 for the fourth quarter of the fiscal year ended March 31, 2025.

![CNCK Mar.25 Item 5. Monthly users.jpg](cnck-20250331_g10.jpg)

Source: Internal data

***Customer Assets (by Currency)***

Customer assets is a measure of the scale of total value held on our cryptocurrency exchanges as of the

period indicated. We believe that customer assets reflect the trusted nature of our cryptocurrency exchanges and

services. The value of our customer assets is driven by the price, quantity, and type of crypto assets held by

customers. Customer assets include cash deposited by customers, which is segregated in a trust account with a trust

bank, and customers' crypto assets that we hold in custody.

Changes in the price and quantity, particularly for Bitcoin, Ethereum and XRP, or in the types and mix of

crypto assets we make available to our customers, can result in growth or decline in customer assets within a

particular period. For example, we could see an increase in the quantity of customer assets we hold — meaning

measured in units of crypto assets — but the value of customer assets could decline if the corresponding price of a

crypto asset declines. Conversely, a decline in the quantity of assets we hold can be offset, or partially offset, by

rising crypto asset prices.

Our ability to protect our customers' crypto assets is also an important factor, since any inability to do so

could result in us compensating our customers for their loss (even if we are not legally required to do so), our

customers losing trust in our services, the withdrawal of customer assets or a reduction in the deposit of customer

assets. We work continuously to comply with applicable security measures to ensure that customer assets are

protected. For more information, see "Risk Factors — Risks Relating to Our Business, the Crypto Industry, and

Crypto Assets" and "Business — Regulatory Environment — Regulations on Crypto Asset Exchange Service." We

provide custody services to our customers for their crypto assets. Customer assets as of March 31, 2025, and

March 31, 2024 were ¥859,204 million and ¥744,201 million, respectively.

Because the amount and value of our customer assets are driven by multiple factors, some of which are

market dependent, this metric has fluctuated in recent periods. For example, according to closing day pricing

information from CoinMarketCap, the prices of Bitcoin and Ethereum reached their lowest levels during the fiscal

year ended March 31, 2023. However, despite those price declines, our customer assets grew that fiscal year

(compared to the prior fiscal year) to ¥344 billion, driven by growth in the price, quantity, or transactions in other

types of crypto assets we support, such as XRP. As of March 31, 2024, our customer assets grew further still, to

¥744 billion, of which ¥57 billion consisted of XRP. As of March 31, 2025, our customer assets grew to ¥859

billion, of which ¥179 billion consisted of XRP.

<u>Customer Assets</u>![CNCK Mar.25 Item 5. Customer assets.jpg](cnck-20250331_g11.jpg)

Source: Coincheck internal data.

***Trading Volume (by Cryptocurrency)***

The trading volume of our Marketplace platform customers is directly correlated with our revenue and is

influenced by both price and volatility of Bitcoin, Ethereum, XRP and other crypto assets. We have experienced

periods of low and high trading volume, and therefore revenue, driven by periods of rising or declining crypto asset

prices and/or lower or higher volatility within the crypto asset market. During periods of rising Bitcoin prices and

higher volatility, we have generally observed higher trading volume on both our Marketplace platform and

Exchange platform.

There are a number of factors that contribute to changes in price and volatility of a given crypto asset,

including, but not limited to: changes in the supply and demand for a particular crypto asset; crypto market

sentiment; macroeconomic factors; utility of a particular crypto asset; and other events, such as exchange outages or

social media commentary. Market participation by well-known investors can also affect consumer sentiment.

Occasionally, planned network events, such as an airdrop, where the network provides holders of a

particular crypto asset with a reward, or a "halving," which is when the reward for validating transactions for a

crypto network is reduced by half, can lead to shifts in customer interest in a specific crypto asset. Event-driven

changes in customer interest may be temporary and, as a result, our financial performance following such events

may not be indicative of future operating performance or financial condition.

The following table shows the trading volume by currency on our Marketplace platform for the fiscal years

ended March 31, 2025, 2024 and 2023:

---

| | | | |
|:---|:---|:---|:---|
|  | For the fiscal year ended March 31, | For the fiscal year ended March 31, | For the fiscal year ended March 31, |
|  | 2025 | 2024 | 2023 |
|  | (In millions) | (In millions) | (In millions) |
| BTC | ¥143,717 | ¥106,976 | ¥66,219 |
| ETH | 78468 | 63711 | 40170 |
| XRP | 55644 | 20729 | 18072 |
| IOST | 3016 | 5450 | 11974 |
| ENJ | 352 | 1642 | 4818 |
| LTC | 2642 | 2529 | 1959 |
| SAND | 2247 | 2056 | 2695 |
| XLM | 5539 | 1545 | 2277 |
| XEM | 607 | 444 | 2684 |
| BCH | 4782 | 3624 | 1494 |
| BAT | 541 | 571 | 1070 |
| OMG |  | 494 | 1349 |
| DOT | 1473 | 1338 | 478 |
| QTUM | 733 | 560 | 709 |
| MONA | 435 | 509 | 370 |
| LSK | 174 | 484 | 657 |
| FCT |  |  | 98 |
| SHIB | 16286 |  |  |
| Others | 20871 | 21903 |  |
| Total | ¥337,527 | ¥234,566 | ¥157,093 |

---

***IEO Revenue***

We launched our IEO platform, Coincheck IEO, in July 2021, which is the first of its kind in Japan, and on

which the first approved IEO in Japan was launched later that year. We charge fees to companies seeking to list on

our exchange using our IEO platform, including a certain proportion of the tokens to be sold on the exchange.

Commissions received from the issuer and customers, which are based on the fair value of the tokens at the time

received, were ¥397 million, ¥nil million and ¥256 million, for the years ended March 31, 2025, 2024 and 2023,

respectively. IEO-related commissions are recorded by us as commissions received.

**Factors Affecting Our Results of Operations**

The success and historical growth of our business as well as our financial condition and operating results

have been and will continue to be affected by a number of factors, as described in more detail below.

***Price and volatility of crypto assets***

For both the years ended March 31, 2025 and 2024, 99.6% of our total revenue consisted of transaction

revenue generated from trades relating to our Marketplace platform business. As a result, our total revenue is highly

correlated with the price and volatility of crypto assets. As earlier mentioned, there are a number of factors that

contribute to changes in crypto asset prices and volatility, including, but not limited to: changes in the supply and

demand for a particular crypto asset; overall crypto market sentiment; macroeconomic factors; the utility of a

particular crypto asset; and other events, such as exchange outages, social media commentary, and government

policies.

***Adoption of crypto assets and offering of new crypto assets***

Our financial performance is dependent on the continued growth in interest for, and adoption of, crypto

assets by investors in Japan. Moreover, our growth strategy depends on our continued ability to add customers,

expand the breadth of crypto assets on our cryptocurrency exchanges, and launch innovative products.

The number of crypto assets that are tradeable on our cryptocurrency exchanges has increased over time,

and we offer 30 different crypto assets on our Marketplace platform as of March 31, 2025. We only offer trading in

crypto assets which have been approved for trading by crypto asset exchange service providers under the guidelines

of the JVCEA. For the years ended March 31, 2025, 2024 and 2023, respectively, Bitcoin and Ethereum trading

volume, as a percentage of total crypto trading volume in Japan (according to the JVCEA data that includes all

types of Japanese exchanges), was approximately (i) 62% and 11%, (ii) 73% and 12%, and (iii) 70% and 16%,

respectively. However, trading volume of Bitcoin and Ethereum on our Marketplace platform for the years ended

March 31, 2025, 2024 and 2023 were, respectively, 43% and 23% (2025), 46% and 27% (for 2024), and 42% and

26% (for 2023). We believe that our higher percentage of trading volume in crypto assets other than Bitcoin and

Ethereum demonstrates the depth and value of our Marketplace platform offering, which helps us attract, engage and

retain customers.

Over time, we have observed an overall positive trend in the total market capitalization of crypto assets,

which indicates increased adoption. However, these historical trends are not indicative of future adoption, and it is

possible that the adoption of crypto assets and blockchain technology may slow, decline, take longer to develop, or

never be as broadly adopted as many anticipate, which would negatively impact our business and operating results.

***Offering leading technology and providing successful products and services***

We believe that the development of new products and services to enhance the value proposition of our

crypto asset offerings to our customers is important to maintain our existing customer base and grow it, as well as to

reach new customer segments. We continually focus on having leading user interface/user experience (UI/UX)

design features for our mobile application to attract and engage retail users as their first access point to trading of

crypto assets.

We also focus on our platforms' ease-of-use and adding new products and services to our offering, such as

additional crypto assets to buy and sell, and our Coincheck NFT Marketplace and IEO platform offerings, which we

believe appeal to our Marketplace platform users. Subject to the effect of acquisitions or strategic joint ventures, if

any, we may do in the future, we believe that our Marketplace platform will continue to be the primary driver of our

revenue.

Substantially all of our customers are retail users, some more sophisticated than others, but we are also

interested in introducing our products and services more to institutional investors who may be interested in crypto

assets, such as through our recently launched "Coincheck Prime" branded offering. However, we may not be able to

introduce attractive products or services to institutional users, or such institutions may choose to do business with

our competitors.

***Ability to competitively price our products and services***

Our operating results also depend on our ability to competitively price our products and services. Similar to

other financial products, as the crypto asset industry matures we anticipate increased pressure on spreads and

commission fees to emerge over time as new, and potentially larger and more established, financial institutions enter

the market.

While we believe that we will be able to maintain our position as a trusted brand in Japan and continue to

enhance our customer-value proposition and grow our scale, including growing our customer base, in order to offset

the effects of any future price pressure on our fees, if we are unable to do so or if such price pressure emerges more

rapidly than we anticipate our operating results may be adversely affected.

***Marketing***

Our primary means of marketing is digital marketing, which allows us to respond flexibly to the impact of

changes in the market price of crypto assets. We use television advertisements only to the extent we believe those

investments can produce a reasonable return within a reasonable period of time based on our estimated conversion

ratio and other factors. Generally, we estimate our return of investment per marketing campaign, which is a primary

factor in our decision as to whether launch the campaign.

Our advertising and promotion expenses are directed towards customer acquisition. They totaled ¥1,874

million and ¥661 million for the years ended March 31, 2025 and 2024, respectively, and the number of new

accounts opened totaled 309,951 and 178,949, respectively. During our fiscal year ended March 31, 2024, in light of

the adverse market environment during that year, we reduced our advertising and promotion expenses, as compared

to our ¥1,294 million expense for the fiscal year ended March 31, 2023. Beginning in May 2024, we resumed the

airing of television advertisements, which caused our advertising costs to increase in the year ended March 31, 2025.

The components of our advertising and promotional expenses are web advertising, affiliate marketing programs,

television advertising, and marketing campaign expenses, which accounted for (i) 18.9%, 51.7%, 18.4% and 10.3%,

respectively, of our advertising and promotional expenses for the fiscal year ended March 31, 2025, (ii) 12.8%,

69.7%, 0.0%, and 16.5%, respectively, for the fiscal year ended March 31, 2024, and (iii) 16.0%, 73.3%, 0.2% and

9.2%, respectively, for the fiscal year ended March 31, 2023.

We monitor our total marketing costs for customer acquisition (MCC), cost per acquisition (CPA) and

customer payback to assess the effectiveness of our marketing. Relevant measures for recent periods are summarized

below:

<u>Revenue and Total MCC (Marketplace platform)</u>

![CNCK Mar.25 Item 5. Revenue and Total MCC.jpg](cnck-20250331_g12.jpg)

____________

<sup>(1)</sup> The table above provides our total MCC, CPA, and customer payback for the periods from April 2022 to March 2025.

The left bar for each quarter details our total marketing costs, whereas the right bar for each quarter details our customer

payback amount for 24 months, including the month in which each customer completed the KYC process (and if 24

months have not passed, from the month in which each customer completed the KYC process to the end of March 2025),

for the cohort of customers that were acquired within the quarter. The line above each set of bars provides our CPA for

each given quarter. This number is derived by taking the MCC in a given period and dividing it by the total incremental

customers that completed our KYC process in that respective quarter.

<sup>(2)</sup> MCC and revenue in the table above also include items that are recognized as deductions from sales for accounting

purposes.

<sup>(3)</sup> For example, for the three months ended June 2022, our total MCC was ¥591 million, which equated to approximately

¥6,927 in CPA for each customer that completed our KYC process in that quarter. This total MCC of ¥591 million should

be viewed in context of the revenue generated from the month each customer completed our KYC process for that cohort

of customers acquired during the three months ended June 2022, which is ¥1,144 million for those customers through to

the 24 months from, and including, the month in which each customer completes the KYC process (and if 24 months have

not passed, from the month in which each customer completed the KYC process to the end of December 2024). The left

bar is static as that represents the total amount of marketing costs that were incurred during the three months ended June

2021. The right bar represents the total of cumulative revenue generated from for the 24 months from, and including, the

month each customer completed the KYC process (and if 24 months have not passed, represents the cumulative revenue

from the month each customer completed the KYC process to the end of March 2025) for the cohort of customers

acquired during the three months ended June 2023. The gray portion of the stacked bar represents revenue generated in

the first to third month for each customer post-acquisition, the light blue represents revenue generated in the fourth to

sixth month for each customer post-acquisition, the purple represents revenue generated in the seventh to ninth month for

each customer post-acquisition, and the light green represents revenue generated 10 to 24 months onwards for each

customer post-acquisition.

Source: Coincheck internal data.

The markets for crypto assets continue to evolve, and the number of new accounts opened in a certain

period is heavily influenced by a variety of external factors, including price trends of the cryptocurrencies supported

on our cryptocurrency exchanges and media coverage regarding crypto asset markets. Because of the volatility in

markets for crypto assets and the highly variable nature of our advertising and promotion expenses, these historical

metrics may be of limited value in predicting future performance. We expect to continue to consider the latest

market trends, our financial condition and other factors, in addition to historical experience of marketing

effectiveness in any given period, in determining appropriate levels of marketing expenditures. In addition, we plan

to continue to invest in the development of and market new products and services.

***Regulation in Japan and international markets***

Our financial prospects and continued growth depend in part on our ability to continue to operate in a

manner compliant with applicable regulations. Our business is subject to the oversight of numerous regulatory and

self-regulatory agencies in Japan, including, but not limited to, JFSA and the JVCEA. We received our license as a

crypto asset exchange service provider from the JFSA in January 2019.

Our strategy is to continue to invest in our finance, legal, compliance, and security functions in order to

remain at the forefront of crypto policy initiatives and regulatory trends in Japan and maintain our reputation and

trust with customers and regulators. Mr. Satoshi Hasuo, our Chief Operating Officer, is also a director of the

JVCEA, and we have a leadership role in the regulatory working group of the JVCEA. As the industry matures, we

may experience fluctuations in our operating results as a result of changes in the law and regulations that are

applicable to our business, which may limit our ability to support new blockchains and crypto assets and offer our

products and services.

We may in the future expand our services into markets outside of Japan. Several regulatory bodies across

the world have enacted or signaled changes to regulatory policy. Given the rapid pace of change in the crypto

exchange industry and the evolving regulatory environment globally, any expansion of our business, through

acquisitions or otherwise, outside of Japan would subject us to additional and differing regulatory regimes and likely

significant compliance costs.

Additionally, as an SEC-registered company that is listed on Nasdaq, we are subject to certain reporting

and regulatory requirements in the United States. In the United States, on January 21, 2025, the SEC announced the

formation of the Crypto Task Force, chaired by SEC Commissioner Hester Peirce. Also in January 2025, the SEC

released SAB No. 122, rescinding SAB No. 121, Accounting for Obligations to Safeguard Crypto-Assets an Entity

Holds for Platform Users, which, until repealed, required an entity to record a liability to reflect its obligation to

safeguard the crypto assets held for its platform users with a corresponding asset and required disclosures related to

the entity's safeguarding obligations. SAB No. 122 is effective for annual periods beginning after December 15,

2024, and is required to be applied on a fully retrospective basis, with early adoption permitted. The Company

adopted SAB No.122 and therefore does not recognize the safeguard liabilities and corresponding safeguard assets

in its consolidated statement of financial position.

See, also, "Business Overview — Regulatory Environment."

**Components of Results of Operations**

***Total revenue***

Total revenue consists of transaction revenue, commission received, and other revenue. Our primary

revenue stream is from our Marketplace platform, where 30 different types of cryptocurrencies can be traded as of

March 31, 2025, including BTC, Ethereum, XRP and other altcoins (altcoins have been an industry term for

cryptocurrencies other than Bitcoin). However, our revenue is susceptible to significant fluctuations as trading

volumes in our Marketplace platform depend on cryptocurrency market volatility and prices, which ultimately

impact how much revenue we earn.

***Transaction revenue***

Our Marketplace platform business is the main source of transaction revenue. Transaction revenue from our

Marketplace platform business is derived from transactions with customers and cover transactions that support

Marketplace platform customer transactions. The table below shows this breakdown of transaction revenue for the

fiscal years indicated:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
|  | **2025** | **2024** | **2023** |
| Transaction revenue from customers | ¥243,696 | ¥158,733 | ¥125,491 |
| Transaction revenue from cover counterparties | 138009 | 64313 | 49446 |
| Transaction revenue (total) | ¥381,705 | ¥223,046 | ¥174,937 |

---

Transaction revenue is recognized at the time the transaction is processed. We have experienced periods of

low and high-trading volume, and therefore transaction revenue, driven primarily by periods of rising or declining

Bitcoin prices and/or lower or higher-cryptocurrency volatility. During periods of rising Bitcoin prices and higher

volatility, we have generally observed higher transaction revenue generated by our Marketplace platform business.

For the years ended March 31, 2025, 2024 and 2023, our average spread (our fee) per transaction was 3.50%, 3.45%

and 3.45%, respectively, a generally flat trend with slight fluctuation due primarily to the change in the mix of

cryptocurrencies being traded. Total Marketplace Platform trading volume for these three years was ¥337.5 billion,

¥234.6 billion, and ¥157.1 billion, respectively.

***Commission received***

Our commission received consist primarily of remittance fees, deposit and withdrawal and transfer fees,

commissions received from the issuer and subscribing customers in the IEO business, commissions that arise from

transactions on the Coincheck NFT Marketplace, commissions that arise from transactions on our Exchange

platform, and other commissions.

***Expenses***

Expenses consist of cost of sales and selling, general, and administrative expenses.

*Cost of sales*

We purchase crypto assets from customers or cover counterparties to complete customer Marketplace

platform orders. Our cost of sales is, mainly, the aggregate price of the crypto assets at the time we purchase them.

*Selling, general, and administrative expenses*

Personnel expenses and advertising and promotion expenses are the largest components of our selling,

general, and administrative expenses. Our personnel expenses are expected to scale if and as our revenues grow.

Systems-related expenses are a mix of fixed and variable costs, with the variable costs correlated to some extent

with user numbers and trading volumes, and incurred in order to support our mobile and desktop web applications.

With respect to advertising and promotional expenses, beginning in May 2024 we resumed television advertising,

which increased our advertising costs in the year ended March 31, 2025. For the years ended March 31, 2025, 2024

and 2023, our advertising and promotion expenses were ¥1,874 million, ¥661 million and ¥1,294 million,

respectively.

Our other costs are relatively fixed in nature, which we believe allows us to target significant operating

leverage through growth of our customer base. We believe that our expense structure enables us to be profitable, or

minimize loss, even in periods with low trading volume.

Selling, general, and administrative expenses consist primarily of the following:

• *Personnel expenses*. Personnel expenses consist of salaries and bonuses of our employees.

• *Advertising and promotion expenses*. Advertising and promotion expenses primarily include

expenses incurred for the advertising of our products in various media, including television, internet

(including social media and online video-sharing platforms) and affiliate marketing programs, and the

press.

• *Professional fees*. Professional fees consist of legal, financial advisory, accounting and other

consulting fees. The advisory fees related to the Business Combination were ¥4,607 million, ¥248

million, and ¥717 million, for the years ended March 31, 2025, 2024 and 2023, respectively.

• *Communication expenses*. Communication expenses include cloud service expenses such as Amazon

Web Services.

• *Subcontract expenses*. Subcontract expenses include outsourcing costs.

Selling, general, and administrative expenses also include depreciation and amortization, business

management service fees, transaction related costs, subcontract labor costs, tax expenses, and other expenses.

***Other Income and Expenses***

*Other income*

There is no significant other income for the year ended March 31, 2025, and other income consists

primarily of gain on sale of business and gain on sale of crypto assets held for the year ended March 31, 2024.

*Other expenses*

Other expenses consist primarily of exchange loss and disposals of intangible assets for the year ended

March 31, 2025, and lease contract cancellation penalty, loss on sales and disposals of intangible assets, and

termination benefits and exchange loss for the year ended March 31, 2024.

***Financial Income and Expenses***

*Financial income*

Financial income consists primarily of change in fair value of warrant liabilities for the year ended

March 31, 2025 and derivative gains for the year ended March 31, 2024.

*Financial expenses*

Financial expenses consist primarily of interest expenses for the year ended March 31, 2025 and

impairment losses of other financial assets (non-current assets) for the year ended March 31, 2024.

**Historical Results of Operations**

***Comparison of the year ended March 31, 2025, with the year ended March 31, 2024***

The following table shows selected consolidated statements of profit or loss data for the years ended March

31, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **For the fiscal year ended** <br>**March 31,** | **For the fiscal year ended** <br>**March 31,** |
| ***(In millions)*** | **2025** | **2024** |
| Revenue: |  |  |
| Revenue | ¥383,205 | ¥223,775 |
| Other revenue | 125 | 274 |
| Total revenue | 383330 | 224049 |
| Expenses: |  |  |
| Cost of sales | 369852 | 214786 |
| Selling, general and administrative expenses | 14458 | 6757 |
| Total expenses | 384310 | 221543 |
| Operating profit (loss) | (980) | 2506 |
| Other income and expenses |  |  |
| Other income | 22 | 437 |
| Other expenses | (105) | (153) |
| Listing expense | (13714) |  |
| Financial income | 1457 | 67 |
| Financial expenses | (39) | (17) |
| Profit (loss) before income taxes | (13359) | 2840 |
| Income tax expense | 991 | 873 |
| Net profit (loss) for the year | (14350) | 1967 |

---

*Revenue*. Revenue was ¥383,205 millionin the year ended March 31, 2025, an increase of ¥159,430

million, or 71%, from ¥223,775 millionin the year ended March 31, 2024. The increase was due mainly to increased

transaction revenue due to the increased Marketplace platform trading volume.

*Other revenue*. Other revenue was ¥125 millionin the year ended March 31, 2025, a decrease of ¥149

million or 54%, from ¥274 millionin the year ended March 31, 2024. The decrease was due mainly to decreased

sales of NFTs.

*Cost of sales*. Cost of sales was ¥369,852 millionin the year ended March 31, 2025, an increase of

¥155,065 million, or 72%, from ¥214,786 millionin the year ended March 31, 2024. This increase was due mainly

to an increase in trading volume on our Marketplace platform.

*Selling, general, and administrative expenses*. Selling, general, and administrative expenses were ¥14,458

millionin the year ended March 31, 2025, an increase of ¥7,701 million, or 114%, from ¥6,757 millionin the year

ended March 31, 2024. The increase was due mainly to an increase in professional fees relating to the Business

Combination and listing of the Company's Ordinary Shares on Nasdaq.

---

| | | |
|:---|:---|:---|
|  | **For the fiscal year ended** <br>**March 31,** | **For the fiscal year ended** <br>**March 31,** |
| ***(In millions)*** | **2025** | **2024** |
| Personnel expenses | ¥2,684 | ¥2,287 |
| Advertising and promotion expenses | 1874 | 661 |
| Professional fees | 6163 | 710 |
| Communication expenses | 786 | 769 |
| Subcontract expenses | 857 | 473 |
| Depreciation and amortization | 727 | 679 |
| Business management fee | 397 | 458 |
| Transaction related costs | 423 | 335 |
| Subcontract labor costs | 142 | 130 |
| Tax expenses | 100 | 116 |
| Others | 305 | 139 |
| Total | ¥14,458 | ¥6,757 |

---

*Operating profit (loss).* Operating loss was ¥980 millionin the year ended March 31, 2025, a decrease of

¥3,486 million, or 139%, from an operating profit of ¥2,506 millionin the year ended March 31, 2024. A large

component of the operating loss in the year ended March 31, 2025 was total professional expenses of ¥4,607 million

related to the Business Combination and listing of the Company's Ordinary Shares on Nasdaq.

*Other income*. Other income was ¥22 millionin the year ended March 31, 2025, a decrease of ¥415

million, or 95%, from ¥437 millionin the year ended March 31, 2024, which included a gain of ¥300 million from

the sale of our Sharely business. We decided to sell Sharely because it was a business not related to the crypto assets

industry.

*Other expenses*. Other expenses were ¥105 millionin the year ended March 31, 2025, a decrease of ¥48

million, or 31%, from ¥153 millionin the year ended March 31, 2024. The decrease primarily relates to a

cancellation penalty of lease contract of ¥44 million that occurred in the year ended March 31, 2024.

*Financial income*. Financial income was ¥1,457 millionin the year ended March 31, 2025, an increase of

¥1,390 million, from ¥67 millionin the year ended March 31, 2024. The change was due mainly to the decrease in

the fair value of our warrant liabilities.

*Listing expense*. Listing expense was ¥13,714 millionin the year ended March 31, 2025 (there was no

listing expense in the prior year). The listing expense relates to the completion of the Business Combination and

listing of our Ordinary Shares on Nasdaq in December 2024. The listing expense represents the excess of fair value

of Coincheck shares deemed to have been issued over the fair value of Thunder Bridge's identifiable net assets

acquired, and represents compensation for the service of a stock exchange listing for its shares that is expensed as

incurred.

*Financial expenses*. Financial expenses were ¥39 millionin the year ended March 31, 2025, an increase

of ¥22 million, or 129%, from ¥17 millionin the year ended March 31, 2024. The change was due mainly to an

increase in interest expenses.

*Income tax expenses*. Income tax expenses were ¥991 millionin the year ended March 31, 2025, an

increase of ¥118 million, or 14%, from ¥873 millionin the year ended March 31, 2024. The increase in income tax

expenses was due mainly to increased taxable income.

***Comparison of the year ended March 31, 2024 with the year ended March 31, 2023***

The following table shows selected statements of profit or loss data for the years ended March 31, 2024 and

2023:

---

| | | |
|:---|:---|:---|
|  | **For the fiscal year ended** <br>**March 31,** | **For the fiscal year ended** <br>**March 31,** |
| *(In millions)* | **2024** | **2023** |
| Revenue: |  |  |
| Revenue | ¥223,775 | ¥175,992 |
| Other revenue | 274 | 932 |
| Total revenue | 224049 | 176924 |
| Expenses: |  |  |
| Cost of sales | 214786 | 169604 |
| Selling, general and administrative expenses | 6757 | 8039 |
| Total expenses | 221543 | 177643 |
| Operating profit (loss) | 2506 | (719) |
| Other income and expenses |  |  |
| Other income | 437 | 45 |
| Other expenses | (153) | (165) |
| Financial income | 67 |  |
| Financial expenses | (17) | (7) |
| Profit (loss) before income taxes | 2840 | (846) |
| Income tax (benefit) expense | 873 | (287) |
| Net profit (loss) for the year | 1967 | (559) |

---

*Revenue*. Revenue was ¥223,775 million in the year ended March 31, 2024, an increase of ¥47,783

million, or 27%, from ¥175,992 million in the year ended March 31, 2023. The increase was due mainly to increased

transaction revenue due to increased Marketplace platform trading volume.

*Other revenue.* Other revenue was ¥274 million in the year ended March 31, 2024, a decrease of ¥658

million, or 71%, from ¥932 million in the year ended March 31, 2023. The decrease was due mainly to a decrease in

sales of NFTs.

*Total revenue*. Total revenue was ¥224,049 million in the year ended March 31, 2024, an increase of

¥47,125 million, or 27%, from ¥176,924 million in the year ended March 31, 2023. The increase was due mainly to

an increase in transaction revenue due to an increase in trading volume on our Marketplace platform.

*Cost of sales*. Cost of sales was ¥214,786 million in the year ended March 31, 2024, an increase of

¥45,182 million, or 27%, from ¥169,604 million in the year ended March 31, 2023. This increase was due mainly to

an increase in trading volume on our Marketplace platform.

*Selling, general and administrative expenses*. Selling, general and administrative expenses were ¥6,757

million in the year ended March 31, 2024, a decrease of ¥1,282 million, or 16%, from ¥8,039 million in the year

ended March 31, 2023. The decrease was due mainly to a decrease in advertising and promotion expenses and a

decrease in professional fees.

---

| | | |
|:---|:---|:---|
|  | **For the fiscal year ended** <br>**March 31,** | **For the fiscal year ended** <br>**March 31,** |
| ***(In millions)*** | **2024** | **2023** |
| Personnel expenses | ¥2,287 | ¥2,020 |
| Advertising and promotion expenses | 661 | 1294 |
| Professional fees | 710 | 1262 |
| Communication expenses | 769 | 873 |
| Subcontract expenses | 473 | 787 |
| Depreciation and amortization | 679 | 483 |
| Business management fee | 458 | 363 |
| Transaction related costs | 335 | 297 |
| Subcontract labor costs | 130 | 280 |
| Tax expenses | 116 | 27 |
| Others | 139 | 353 |
| Total | ¥6,757 | ¥8,039 |

---

*Operating profit (loss)*. Operating profit was ¥2,506 million in the year ended March 31, 2024, an

increase of ¥3,225 million, or 449%, from an operating loss of ¥719 million in the year ended March 31, 2023. The

change was due mainly to an increase in total revenue due in part to a slowly recovering cryptocurrency market.

*Other income*. Other income was ¥437 million in the year ended March 31, 2024, an increase of ¥392

million, or 871%, from ¥45 million in the year ended March 31, 2023. The increase was due mainly to a gain

realized from the sale of our Sharely business.

*Other expenses*. Other expenses were ¥153 million in the year ended March 31, 2024, a decrease of ¥12

million, or 7%, from ¥165 million in the year ended March 31, 2023. The decrease was due mainly to having no

impairment loss of crypto assets held (non-current assets), partially offset by a lease cancellation penalty and

termination benefit costs.

*Financial income*. Financial income was ¥67 million in the year ended March 31, 2024, an increase of

¥67 million from ¥ nil million in the year ended March 31, 2023. The increase was due mainly to an increase in

derivative gains.

*Financial expenses*. Financial expenses were ¥17 million in the year ended March 31, 2024, an increase

of ¥10 million from ¥7 million in the year ended March 31, 2023. The increase was due mainly to an increase in

impairment loss of other financial assets.

*Profit (loss) before income taxes*. Profit before income taxes was ¥2,840 million in the year ended March

31, 2024, an increase of ¥3,686 million from a loss of ¥846 million in the year ended March 31, 2023. The increase

was due mainly to an increase in revenue.

*Income tax (expenses) benefits*. Income tax expenses were ¥873 million in the year ended March 31,

2024, compared to ¥1,160 million from income tax benefits of ¥287 million in the year ended March 31, 2023, due

mainly to a profit of ¥2,840 million in the year ended March 31, 2024 compared to a loss of ¥846 million in the year

ended March 31, 2023.

*Net profit (loss) for the period*. Net profit was ¥1,967 million in the year ended March 31, 2024, an

increase of ¥2,526 million as compared to net loss of ¥559 million in the year ended March 31, 2023. The increase

was due mainly to an increase in revenue.

**Non-IFRS Financial Measures**

In addition to our results determined in accordance with IFRS Accounting Standards, we present EBITDA

and Adjusted EBITDA, both non-IFRS measures, because we believe they are useful in evaluating our operating

performance. EBITDA represents net profit (loss) for the period before the impact of taxes, interest, depreciation,

and amortization of intangible assets, and Adjusted EBITDA is EBITDA, further adjusted for transaction expenses

that are directly attributable to the Reverse Recapitalization (as a result of the Business Combination), as well as

Nasdaq listing expenses.

We use EBITDA and Adjusted EBITDA to evaluate our ongoing operations and for internal planning and

forecasting purposes. We believe that EBITDA and Adjusted EBITDA may be helpful to investors because they

provide consistency and comparability with past financial performance. However, EBITDA and Adjusted EBITDA

are presented for supplemental informational purposes only, have limitations as an analytical tool and should not be

considered in isolation or as a substitute for our financial information presented in accordance with IFRS

Accounting Standards.

A reconciliation is provided below for each non-IFRS financial measure to the most directly comparable

financial measure stated in accordance with IFRS Accounting Standards. Investors are encouraged to review the

related IFRS financial measures and the reconciliation of these non-IFRS financial measures to their most directly

comparable IFRS financial measures, and not to rely on any single financial measure to evaluate our business.

The following tables present reconciliations of our non-IFRS financial measures:

***Reconciliation of EBITDA to Net Profit***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
|  | **2023** | **2024** | **2025** |
| **Reconciliation of EBITDA:** |  |  |  |
| Net profit (loss) for the year or the period | ¥(559) | ¥1,967 | ¥(14350) |
| Add: Income tax expenses (benefits) | (287) | 873 | 991 |
| Profit (loss) before income taxes | (846) | 2840 | (13359) |
| Add: Interest expense | 3 | 6 | 29 |
| Add: Depreciation and amortization | 483 | 679 | 727 |
| EBITDA | ¥(360) | ¥3,525 | ¥(12603) |

---

***Reconciliation of Adjusted EBITDA to Net Profit***

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
|  | **2023** | **2024** | **2025** |
| **Reconciliation of Adjusted EBITDA:** |  |  |  |
| Net profit (loss) for the year or the period | ¥(559) | ¥1,967 | ¥(14350) |
| Add: Income tax expenses (benefits) | (287) | 873 | 991 |
| Profit (loss) before income taxes | (846) | 2840 | (13359) |
| Add: Interest expense | 3 | 6 | 29 |
| Add: Depreciation and amortization | 483 | 679 | 727 |
| Add: Transaction expenses excluding listing expense | 717 | 248 | 4607 |
| Add: Listing expense |  |  | 13714 |
| Adjusted EBITDA | ¥357 | ¥3,773 | ¥5,718 |

---

**Liquidity and Capital Resources**

We finance our operations primarily with our cash flows from operating activities. Our fundamental

principles are to build and maintain a financial base for the purpose of maintaining soundness and efficiency of

operations and achieving sustainable growth. According to these principles, we plan on conducting capital

investment, profit distribution, and repayment of any loans based on our operating cash flows through the

development and rendering of our crypto asset exchange services.

Cash and cash equivalents mainly consist of bank deposits. As of March 31, 2025, we had cash and cash

equivalents of ¥8,584 million. As of March 31, 2025, we also had cash segregated as deposits of ¥51,655 million. In

accordance with Japanese laws and regulations, 100% of the legal tender deposited by customers is protected by

trust companies. Therefore, cash deposited by customers is accounted for under different accounts depending on

whether it is protected by trust companies or not. Additionally, Coincheck entered into a line of credit with our

affiliate, Monex Finance Corporation, with aggregate commitments as of March 31, 2024, and March 31, 2025 of

¥6,000 million and ¥6,000 million, respectively. No amounts were outstanding under this arrangement as of March

31, 2024 or March 31, 2025, after drawing down and subsequently repaying ¥6,000 million in June of 2024.

Coincheck Parent entered into its own commitment line contract of ¥2,400 million as a debtor with Monex Finance

Corporation in December 2024, for the purpose of stable operating capital. As of March 31, 2025, the balance

outstanding under this was ¥751 million.

In addition, Coincheck entered into a committed credit line for ¥200 million with JSF Trust and Banking

Co., Ltd. in June 2021, which was increased to ¥500 million as of March 31, 2025, and has been making short-term

borrowings under this agreement several times a year, however, all of the borrowings were repaid within about a

week of the making of each respective loan and the credit line was unused as of March 31, 2025. We believe our

existing cash and cash equivalents, together with our loan arrangements, are sufficient to meet our immediate

working capital and capital expenditure needs.

We hold crypto assets on our consolidated statements of financial position principally to facilitate customer

transactions on our Marketplace platform. Because most customer crypto assets are held in segregated cold wallets

and are not accessible for settlement purposes, we hold crypto assets in our own wallets (nearly all of which are

crypto assets borrowed from customers under our Coincheck Lending program) to facilitate prompt settlement of

transactions. As of March 31, 2025, we had ¥44,680 million of crypto assets held (current assets). These

cryptocurrencies are held and treated as inventories that are recorded at fair value as of the end of the reporting

period. The fair value is measured by using a midmarket pricing of the principal market or the most advantageous

market. As of March 31, 2025, crypto asset borrowings under our Coincheck Lending program totaled ¥44,479

million. We determine the amount of crypto assets to hold based on the total size of our customer assets and recent

trading levels. Our accounting and finance department is responsible for monitoring and determining the appropriate

amount, and our dealing department is then responsible for managing what amount of crypto assets to hold in hot

wallets and to deposit with cover counterparties in accordance with our internal policies. In the interest of security,

our policy is to hold the majority of borrowed customer crypto assets in cold wallets and to hold in hot wallets only

the amount of crypto assets we deem necessary for expected settlement transactions with cover counterparties and

external transfer requests.

The following table shows the amounts held by crypto asset, as well as in hot wallets and cold wallets, or

deposited with cover counterparties, as of March 31, 2023, March 31, 2024 and March 31, 2025.

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** |
|  | **2023** | **2024** | **2025** |
|  | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** |
| BTC | ¥11.8 | ¥32.6 | ¥33.7 |
| ETH | 3.3 | 6.2 | 2.1 |
| XRP | 2.2 | 2.9 | 7.7 |
| IOST | 0.4 | 0.4 | 0.1 |
| ENJ | 0.1 | 0.1 | 0.0 |
| XEM | 0.1 | 0.1 | 0.0 |
| XLM | 0.1 | 0.1 | 0.2 |
| BCH | 0.1 | 0.4 | 0.2 |
| LTC | 0.2 | 0.2 | 0.1 |
| LSK | 0.1 | 0.1 | 0.0 |
| BAT | 0.1 | 0.1 | 0.0 |
| QTUM | 0.1 | 0.1 | 0.0 |
| OMG | 0.1 | 0.0 | 0.0 |
| MONA | 0.0 | 0.0 | 0.0 |
| Others | 0.4 | 0.9 | 0.4 |
| Total crypto assets held (current assets) | ¥19.0 | ¥44.2 | ¥44.7 |
| Amount held in cold wallets | ¥15.8 | ¥39.7 | ¥41.3 |

---

---

| | | | |
|:---|:---|:---|:---|
| Amount held in hot wallets | ¥2.0 | ¥3.6 | ¥3.0 |
| Amount deposited with counterparties | ¥1.1 | ¥0.8 | ¥0.4 |

---

The following table shows the amount of borrowed crypto assets, by crypto asset, as of March 31, 2023,

2024, and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** |
|  | **2023** | **2024** | **2025** |
|  | **(in billions of yen)** | **(in billions of yen)** | **(in billions of yen)** |
| BTC | ¥11.8 | ¥32.6 | ¥33.7 |
| ETH | 3.3 | 6.2 | 2.1 |
| XRP | 2.2 | 2.9 | 7.7 |
| IOST | 0.4 | 0.4 | 0.1 |
| ENJ | 0.1 | 0.1 | 0.0 |
| XEM | 0.1 | 0.1 | 0.0 |
| XLM | 0.1 | 0.1 | 0.2 |
| BCH | 0.1 | 0.4 | 0.2 |
| ETC | 0.1 | 0.2 | 0.1 |
| LTC | 0.1 | 0.1 | 0.0 |
| LSK | 0.2 | 0.2 | 0.1 |
| BAT | 0.1 | 0.1 | 0.0 |
| QTUM | 0.1 | 0.1 | 0.0 |
| OMG | 0.1 | 0.0 | 0.0 |
| MONA | 0.0 | 0.0 | 0.0 |
| Others | 0.2 | 0.5 | 0.3 |
| Total borrowed crypto assets | ¥18.8 | ¥44.0 | ¥44.5 |

---

We monitor the risk related to crypto assets held in hot wallets or deposited with cover counterparties

closely, and our policy is to restrict such amounts to the level necessary to support our operations. As of March 31,

2025, our crypto assets held (current assets) were ¥44,680 million, of which crypto assets borrowed from customers

accounted for ¥44,479 million. As of March 31, 2025, the aggregate of crypto assets held in hot wallets and crypto

assets deposited with our cover counterparties was ¥3.3 billion, as compared to our cash and cash equivalents of

¥8.6 billion.

Borrowing cryptocurrencies from our customers enables us to facilitate trading on our Marketplace

platform at a lower cost than procuring the cryptocurrencies from alternate sources. The terms of the borrowing

arrangements also limit our exposure to the price risk of the underlying crypto assets because we return such crypto

assets in kind at the end of the borrowing period. Both our crypto assets held in current assets and our crypto asset

borrowings are reported at fair value so the impact of price changes in the underlying crypto assets are offset. We

utilize borrowed crypto assets to facilitate the prompt execution of cover transactions before we subsequently

transfer the subject crypto assets to or from customers' segregated cold wallets. We do not use borrowed crypto

assets for proprietary trading or to enter into unhedged positions. We have not experienced difficulties in borrowing

crypto assets from our customers or in executing cover transactions with our cover counterparties in order to support

the operation of our Marketplace platform. Nevertheless, in the event that borrowing from our customers becomes

limited or unavailable, we would seek to secure the crypto assets necessary to facilitate the operation of our

Marketplace platform by borrowing from third parties. However, there is no guarantee that we would be able to find

third parties to borrow the needed amount of crypto assets, in which case we would seek to purchase such crypto

assets in the market, exposing us to price risk. In our Marketplace platform trading operations, we seek to limit our

net open position at any given time by setting internal policy threshold amounts for each cryptocurrency supported

and executing cover transactions when the relevant threshold is reached.

We have not invested in cryptocurrencies for our own account (apart from inventory we acquire to support

liquidity for transactions on our Marketplace platform), but we may do so in the future.

Under IFRS Accounting Standards, there are no accounting standards specifically related to transactions for

crypto assets. In order to determine the accounting treatment, we follow the requirements of IAS 8 *Accounting* 

*Policies, Changes in Accounting Estimates and Errors*, and refer to the conceptual framework for financial

reporting, and standards related to similar matters. In this context, we consider various factors to evaluate whether

we have control for accounting purposes over crypto assets, and account for these transactions accordingly. See Note

13 to our consolidated financial statements for the year ended March 31, 2025 included in this report for more

information on our accounting treatment for crypto assets held.

Under the Payment Services Act, we are defined as a Crypto Asset Exchange Service Provider (CAESP)

and are subject to certain regulations regarding the management of the crypto assets of our customers. For example,

we must segregate all fiat currency and cryptocurrencies of our customers from our own property, keep

cryptocurrencies we own in separate wallets, and keep at least 95% of our customers' cryptocurrencies in wallets

that are not connected to the internet, or "cold wallets." For more information on the regulations applicable to our

business and our holdings of crypto assets, see "Business — Regulation." Accordingly, we have separate wallets for

our owned cryptocurrencies and those deposited by our customers, and manage them separately.

Because we safeguard customers' cryptocurrencies in accordance with the requirements of the Payment

Services Act, the Cabinet Office Ordinance on Virtual Currency Exchange Service Providers, and other applicable

laws and regulations, we estimate that the possibility of potential loss events is remote. Therefore, we determined

that there are no loss contingencies related to an obligation to safeguard customer crypto assets from loss or theft as

of March 31, 2025. See Note 30 to our consolidated financial statements as of and for the year ended March 31,

2025 included in this report.

Airdrops and forks are events that are unique to cryptocurrency businesses, including ours. As these events

occur independently of our decision-making process, it is challenging for us to comprehensively understand and

value each specific airdrop or fork. We have limited ability to predict whether the sale of cryptocurrencies received

from airdrops or forks will be material to our future earnings, which is dependent on the future market viability and

fair value of such cryptocurrencies. On the other hand, for airdrops and forks that may have a significant impact, we

consider granting such crypto assets to our customers depending on the volume of cryptocurrencies deposited with

us. When considering whether or not to grant such cryptocurrencies to customers, we first confirm that the

cryptocurrencies can be transferred securely, and after such confirmation we recognize the granted cryptocurrencies

based on the market price of such asset. Under our current policy, we do not monetize any cryptocurrencies granted

through airdrops and forks that have not yet been granted to customers.

Our future capital requirements will depend on many factors, including market acceptance of crypto assets

and blockchain technology, our growth, our ability to attract and retain customers on our cryptocurrency exchanges,

the continuing market acceptance of products and services, the introduction of new products and services on our

cryptocurrency exchanges, expansion of sales and marketing activities, and overall economic conditions. While we

believe we have sufficient liquidity and expect to have funds from operations to support our operations and meet our

current business plans, we may be required to seek additional funding to the extent that current and anticipated

future sources of liquidity are insufficient to fund our future business activities. We expect to monitor financial

conditions and from time to time may opportunistically raise additional funds through the offer and sale of equity

securities or debt financing. Any sale of additional equity securities may result in additional dilution to our

shareholders. Any additional debt financing would result in debt service obligations and the instruments governing

such debt could provide for operating and financing covenants that would restrict our operations. In the event that

additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at

all. If we are unable to raise additional capital or debt financing when desired, our business, operating results, and

financial condition could be adversely affected.

**Cash flows**

The following tables show our cash flow data for the years ended March 31, 2023, 2024 and 2025:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended at March 31,** | **For the fiscal year ended at March 31,** | **For the fiscal year ended at March 31,** |
| (In millions) | **2023** | **2024** | **2025** |
| Net cash provided by (used in) operating activities | ¥(3803) | ¥3,902 | ¥(1915) |
| Net cash used in investing activities | (749) | (435) | (903) |
| Net cash provided (used) in financing activities | (5455) | (327) | 565 |
| Effect of exchange rate change on cash and cash equivalents |  |  | 0 |
| Net increase/decrease in cash and cash equivalents | (10007) | 3140 | (2253) |
| Cash and cash equivalents at the beginning of year | 17704 | 7697 | 10837 |
| Cash and cash equivalents at the end of year | ¥7,697 | ¥10,837 | ¥8,584 |

---

***Comparison of the year ended March 31, 2025 with the year ended March 31, 2024***

In the year ended March 31, 2025, we had ¥1,915 million net cash used in operating activities, ¥903 million

net cash used in investing activities, and ¥565 million net cash provided by financing activities. As a result, cash and

cash equivalents at the end of the year ended March 31, 2025 decreased by ¥2,253 million, to ¥8,584 million, from

¥10,837 million at the end of the fiscal year ended March 31, 2024.

Net cash used in operating activities was ¥1,915 million in the year ended March 31, 2025, a change of

¥5,817 million from net cash provided by operating activities of ¥3,902 million in the fiscal year ended March 31,

2024. This change was due to a net loss before tax of ¥13,359 million (compared to a net profit before tax of ¥2,840

million), partially offset by a listing expense of ¥13,714 million, which was non-cash expense. Additionally, there

was a change in fair value of warrant liability of ¥1,435 million and an increase in other current assets of ¥846

million and income tax paid of ¥721 million.

Net cash used in investing activities was ¥903 million in the year ended March 31, 2025, compared to ¥435

million in the fiscal year ended March 31, 2024. Net cash used in investing activities mainly consisted of ¥236

million of net cash paid for the acquisition of Next Finance Tech Co., Ltd, in March 2025, and ¥524 million of

expenditure on internally generated intangible assets (compared to ¥380 million in the prior period).

Net cash provided by financing activities was ¥565 million in the year ended March 31, 2025, compared to

cash used in financing activities of ¥327 million in the fiscal year ended March 31, 2024, which was due primarily to

¥621 million of net increase in borrowings from related parties and proceeds from the Reverse Recapitalization.

***Comparison of the year ended March 31, 2024 with the year ended March 31, 2023***

In the year ended March 31, 2024, we had ¥3,902 million net cash provided by operating activities, ¥435

million net cash used in investing activities and ¥327 million net cash used in financing activities. As a result, cash

and cash equivalents at the end of the year ended March 31, 2024 increased by ¥3,140 million to ¥10,837 million,

from ¥7,697 million at the end of the year ended March 31, 2023.

Net cash provided by operating activities was ¥3,902 million in the year ended March 31, 2024, a change of

¥7,705 million from net cash used in operating activities of ¥3,803 million in the previous year. This change was due

to a profit before income taxes of ¥2,840 million (compared to a loss before income taxes of ¥846 million in the

prior period), an increase in deposits received of ¥18,218 million (compared to a decrease of ¥15,287 million in the

prior period), an increase in crypto asset borrowings of ¥25,264 million (compared to a decrease of ¥15,270 million

in the prior period), partially offset by an increase in cash segregated as deposits of ¥18,320 million (compared to a

decrease of ¥14,552 million in the prior period) and an increase in crypto assets held (current assets) of ¥25,093

million (compared to a decrease of ¥15,115 million in the prior period).

Net cash used in investing activities decreased by ¥314 million to ¥435 million in the year ended March 31,

2024, from ¥749 million in the previous year. This decrease was due in part to proceeds from refund of guarantee

deposits of ¥155 million and the sale of business, net of cash and cash equivalents divested of ¥281 million.

Net cash used in financing activities decreased by ¥5,128 million to ¥327 million in the year ended March

31, 2024, from ¥5,455 million in the previous year. This decrease was due mainly to the absence of cash dividends

paid (compared to ¥5,000 million in the prior period) in the year ended March 31, 2024.

**Contractual Obligations and Commitments**

The following table sets forth our aggregate annual maturities of lease liabilities for the next several years,

as of March 31, 2025:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Carrying** <br>**amount**<br>| **Contractual** <br>**cash flow**<br>| **Within** <br>**1 year**<br>| **Within 1 – 2** <br>**years**<br>| **Within 2 – 3** <br>**years**<br>| **More than** <br>**three years**<br>|
|  | **(in millions of yen)** | **(in millions of yen)** | **(in millions of yen)** | **(in millions of yen)** | **(in millions of yen)** | **(in millions of yen)** |
| Lease liabilities | ¥1,277 | ¥1,293 | ¥384 | ¥356 | ¥356 | ¥197 |
| Total | ¥1,277 | ¥1,293 | ¥384 | ¥356 | ¥356 | ¥197 |

---

**Off-Balance Sheet Arrangements**

During the periods presented, we did not have, and we do not currently have, any off-balance sheet

financing arrangements or any relationships with unconsolidated entities or financial partnerships, including entities

sometimes referred to as structured finance or special purpose entities, that were established for the purpose of

facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

**Critical Accounting Policies and Estimates**

Our consolidated financial statements are prepared in accordance with the IFRS Accounting Standards. The

preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the

reported amounts of assets, liabilities, revenue, expenses and related disclosures. We evaluate our estimates and

assumptions on an ongoing basis. Our estimates are based on historical experience and other assumptions that we

believe to be reasonable under the circumstances. Our actual results could differ from these estimates under different

assumptions or conditions. We believe that the following critical accounting policies reflect the more significant

judgments, estimates and assumptions used in the preparation of our financial statements.

***Crypto assets held***

Our holdings of crypto assets that are considered to be controlled by us for accounting purposes are

presented as a part of assets in our consolidated statements of financial position.

We determined that cryptocurrencies for facilitating customer transactions are accounted for under IAS 2

"Inventories." Under IAS 2, such cryptocurrencies are initially recognized at the acquisition price and subsequently

at fair value less costs to sell as these are held with the purpose of acquiring broker-traders' margin. The changes in

fair value less costs to sell are recognized in profit or loss in the period the change occurs.

We use third-party exchanges to measure the fair value of its cryptocurrency. We select the principal

market, which is the exchange with the highest liquidity and highest volume of trades. If a principal market does not

exist, we select the most advantageous market, one with high liquidity, high volume of trades, the most favorable

spread, maximizing the amount that would be received to sell the asset or minimizing the amount that would be paid

to transfer the liability, net of transaction costs. Judgment is required in determining which exchange serves as the

principal market or the most advantageous market for each type of cryptocurrency. Management reviews each

exchange at period end and subsequently accounts for the crypto assets at fair value less cost to sell. The fair values

of the crypto assets are considered to be Level 1 fair value measurements, which are unadjusted quote prices in

active markets that are accessible at the measurement date for identical, unrestricted assets.

***Crypto Asset Borrowing***

We enter into contracts to borrow cryptocurrencies from our customers under the Coincheck Lending

program. We record "crypto asset borrowings" with respect to our repayment obligation under the contracts. Crypto

asset borrowings include all crypto assets which are deposited with the Company under the program regardless of

whether the Company utilizes them for its borrowing activities. These crypto assets are recognized as inventories in

the consolidated statements of financial position.

Crypto asset borrowings are initially measured at the fair value of the crypto assets borrowed/deposited.

Subsequent to initial recognition, changes in fair value of crypto asset borrowings are recognized in profit or loss in

the corresponding period. In addition, the fee expenses (calculated as in-kind interest on the amount borrowed)

related to crypto asset borrowings are recognized over the borrowing period.

***Revenue recognition***

*Transaction revenue*

Transaction revenue from our Marketplace platform business is derived from transactions with customers

and cover counterparties.

We have a performance obligation to deliver cryptocurrencies for transactions with customers or with cover

counterparties. Revenue is recognized at the point of time when performance obligation is fulfilled in accordance

with IFRS 15 *Revenue from Contracts with Customers*.

Contracts with customers and cover counterparties to purchase or sell cryptocurrencies are usually open-

ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the

transaction level and do not extend beyond the service already provided. When we receive cryptocurrencies as non-

cash consideration, we measure the received cryptocurrencies at fair value at the time of delivery.

We have determined that we act as the principal in such transactions as we have the ability to direct the use

of, and obtain substantially all of the remaining benefits from, the cryptocurrencies we hold as inventory before they

are transferred to the Company's customers. Additionally, we are primarily responsible for fulfilling the promise to

provide cryptocurrencies to customers on our Marketplace platform pursuant to our terms of service, have inventory

risk as we have no right to return unsold cryptocurrencies to the customers or cover counterparties from which we

have purchased such cryptocurrencies, and set the price of the cryptocurrencies sold on our Marketplace platform.

**Changes in Accounting Policies**

On January 30, 2025, the SEC issued Staff Accounting Bulletin ("SAB") No. 122 ("SAB 122"). SAB 122

rescinds the interpretive guidance in SAB No. 121, *Accounting for Obligations to Safeguard Crypto-Assets an Entity* 

*Holds for Platform Users* ("SAB 121"). We have adopted SAB 122 as of March 31, 2025 on a retrospective basis.

As a result of the adoption of SAB 122, and because we do not have control over the crypto assets held on behalf of

customers, we no longer recognize the safeguard liabilities and the corresponding safeguard assets, and related

deferred tax asset and liability, previously recognized in the consolidated statements of financial position. SAB 122

indicates that an entity is to apply IAS 37, *Provisions, Contingent Liabilities and Contingent Assets*, to determine

whether an entity has a liability related to the risk of loss from an obligation to safeguard crypto assets for

customers.

The amendments of IAS 21, *The Effects of Changes in Foreign Exchange Rates* and IFRS 19, *Subsidiaries* 

*without Public Accountability*: Disclosures are not expected to affect the Company's consolidated financial

statements. The Company is evaluating the impact of applying other new or amended accounting standards.

**Research and Development, Patents and Licenses, etc.**

See "Item 4B: Business Overview—Intellectual Property" and "Item 3D: RISK FACTORS—Risks

Relating to Intellectual Property."

**Trend Information**

See "Item 4B: Business Overview—Our Market Opportunity" and "Item 3D: RISK FACTORS—Risks

Relating to Our Business, the Crypto Industry, and Crypto Assets," as well as "Overview," "Monthly KPIs" and

"Key Business Metrics and Trends" near the front of this section.

**Item 6. Directors, Senior Management and Employees**

**A.Directors and Senior Management**

**Board Structure**

We are a Dutch public limited liability company (naamloze vennootschap) and our business and affairs are

managed under the direction of our Board with a one-tier board structure consisting of one or more Executive

Directors and one or more Non-Executive Directors, with the majority being Non-Executive Directors. Directors of

the Board currently serving were nominated by Monex and the Thunder Bridge Sponsor at the closing of the

Business Combination pursuant to the terms of the Business Combination Agreement. Pursuant to the terms of the

Nomination and Voting Agreement (executed in connection with the Business Combination) which is included as an

exhibit to this report, until the third anniversary of the closing date of the Business Combination the Company is

required to use its reasonable best efforts to cause the Board to include a specified number of Directors nominated

by the Thunder Bridge Sponsor.

**Management and Board of Directors**

The following table sets forth the names, ages and positions of our executive officers, Executive Directors

and Non-Executive Directors as of the date of this report.There are no family relationships among any of our

directors or executive officers.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position** |
| Oki Matsumoto | 61 | Executive Director with the title Executive Chairperson |
| Gary A. Simanson | 65 | Executive Director with the titles President and Chief Executive Officer |
| Yo Nakagawa | 60 | Executive Director with the title of Chief Planning Officer |
| Takashi Oyagi | 56 | Non-Executive Director with the title Lead Non-Executive Director |
| Allerd Derk Stikker | 63 | Non-Executive Director |
| David Burg | 55 | Non-Executive Director |
| Toshihiko Katsuya | 59 | Non-Executive Director |
| Yuri Suzuki | 57 | Non-Executive Director |
| Jessica Sinyin Tan | 48 | Non-Executive Director |
| Jason Sandberg | 46 | Chief Financial Officer (executive officer) |
| Satoshi Hasuo | 55 | Chief Operating Officer (executive officer) |
| Marc Stone | 64 | Chief Legal Officer (executive officer) |

---

***Oki Matsumoto*** is an Executive Director, and Executive Chairperson, of Coincheck Parent, and also serves

as a managing director of Coincheck, Inc. He is also the founder and Chairman of the Board of Monex, and holds

directorship positions with several of Monex's subsidiaries. Mr. Matsumoto also currently serves as an outside

director of Mastercard, Incorporated (since 2016) and as a board member emeritus of Human Rights Watch.

Mr. Matsumoto served as an outside director of the Tokyo Stock Exchange from 2008 to 2013 and is a former

member of the Financial Counsel to the Prime Minister of Japan. He began his career at Salomon Brothers, then

joined Goldman, Sachs & Co. (1990-1998), where he held several leadership positions, including General Partner

(1994-1998), before he founded Monex, Inc., a Japanese online brokerage firm (and a predecessor company to

Monex), in 1999. Mr. Matsumoto has a bachelor's degree in law from the University of Tokyo.

***Gary A. Simanson*** is an Executive Director, and President and Chief Executive Officer, of Coincheck

Parent. Mr. Simanson was President and Chief Executive Officer and a director of Thunder Bridge Capital Partners

IV, Inc. (NASDAQ: THCP) from January 2021 until the December 2024 completion of the Business Combination.

Mr. Simanson is founder of Thunder Bridge Capital, LLC, a private investment vehicle, and has served as its Chief

Executive Officer since 2017. He was Chief Executive Officer and a director of Thunder Bridge Capital Partners

III, Inc. (NASDAQ: TBCP) from June 2020 until December 2023, Chief Executive Officer and a director of

Thunder Bridge Acquisition II, Ltd. (NASDAQ: THBR) from February 2019 until completion of its initial business

combination with indie Semiconductor, Inc. (NASDAQ: INDI) in June 2021, and Chief Executive Officer and a

director of Thunder Bridge Acquisition, Ltd. (NASDAQ: TBRG) from 2018 until completion of its initial business

combination with Repay Holdings Corp. (NASDAQ: RPAY), an omnichannel payments technology provider. Mr.

Simanson has also been Managing Director of First Capital Group, L.L.C., an investment banking advisory firm

specializing in the financial services industry, bank mergers and acquisitions, strategic planning, capital raising and

enterprise risk management, since 1997. He was also a Founder, Vice Chairman and Chief Strategic Officer of

Community Bankers Trust Corporation, a $1.2 billion-in-assets bank holding company for Essex Bank (NASDAQ

NMS "ESXB"), also serving as its President, Chief Executive and Chief Financial Officer, and as a director since its

inception in 2005, until 2011, overseeing (i) its public offering in 2006 as a special purpose acquisition company,

Community Bankers Acquisition Corp, (ii) its bank acquisitions and shareholder reformulation in 2008, and (iii) its

acquisitions from the FDIC of failed banks in 2008 and 2009. Mr. Simanson has served in various other roles as an

executive officer, board member and adviser in regulated industries, including commercial banking, investment

banking and financial services. He began his career as an attorney specializing in the securities, bank regulatory and

bank merger and acquisition areas at Milbank, Tweed, Hadley & McCloy, LLP, and also served as in-house counsel

for a publicly-traded bank holding company. Mr. Simanson is licensed (inactive) to practice law in the states of New

York, Colorado and Tennessee. Mr. Simanson received his bachelor's degree, majoring in Economics, from George

Washington University. He earned his MBA, majoring in Finance, from George Washington University, and holds

his JD from Vanderbilt University.

***Yo Nakagawa*** is an Executive Director, and Chief Planning Officer, of Coincheck Parent. He is also a

Senior Executive Director of Monex and an Expert Director of Coincheck, as well as a Director of Monex

International Limited (Hong Kong) (since 2013). Prior to joining Monex, Mr. Nakagawa served as a Director at

Mimura Strategic Partners (2005-2011) and as Chief Operating Officer at Fujimaki Japan (2003-2004).

Mr. Nakagawa began his career at JP Morgan in 1988. He has a bachelor's degree in Economics from Keio

University in Japan.

***Takashi Oyagi*** is a Non-Executive Director, and serves as Lead Non-Executive Director, of Coincheck

Parent. He is a founding member of Monex, currently serving as a member of its board of directors, an Executive

Officer, and Monex's Chief Financial Officer, and is also (i) Executive Chairman of the board of directors of

Monex's subsidiary, TradeStation Group, Inc. (and a board member of TradeStation Group's principal operating

subsidiaries), and (ii) the chair of the board of directors of the Monex subsidiary, 3iQ Digital Holdings Inc. He has,

since April 2025, also served on the board of managers at WMS General Partner LLC, the general partner of

Westfield Capital Management L.P., an asset management company in which Monex acquired a 20% stake in April

2025. Mr. Oyagi served as a Director in the Global Markets Division of Deutsche Bank Securities, Inc. in New York

(2004-2007), and in the Asian Special Situation Group at Goldman Sachs (Japan) Ltd. (1998-1999). He began his

career in finance in 1991 at Bank of Japan. Mr. Oyagi has a bachelor's degree in law from the University of Tokyo

and an MBA degree from the University of Chicago.

***Allerd Derk Stikker*** is a Non-Executive Director of Coincheck Parent. He is currently an advisor of BXR

Group and a director of a number of portfolio companies of BXR Group. Mr. Stikker joined BXR Group in 2008,

initially as Chief Financial Officer of its real estate division, then as BXR Group's Chief Operating Officer

(2011-2014) and Chief Executive Officer (2014-2018). Mr. Stikker, a Dutch citizen, started his career as a banking

consultant in the United States, then served as the Chief Financial Officer of IMC, a Dutch financial institution, after

returning to Europe. He holds an MBA and a bachelor's degree in Business Administration from The George

Washington University.

***David Burg*** is a Non-Executive Director of Coincheck Parent. He is currently Global Group Head, Cyber

and Data Resilience, at Kroll, LLC, having joined Kroll in March 2024. At Kroll he is primarily responsible for

leading a team of professionals with P&L responsibility and overseeing a global team of cybersecurity and

technology professionals who support their clients in their efforts to manage and mitigate risk. Mr. Burg previously

worked at Ernst & Young LLP, from April 2018 to February 2024, as Principal and Americas Cyber Leader. From

1998 to 2018 Mr. Burg served in a variety of positions at PricewaterhouseCoopers LLP (PwC) in the United States,

including Principal and Global Cyber Security Leader and Principal and U.S. and Global Advisory Cyber Leader,

among other positions. Mr. Burg started his career as Project Specialist to Assistance Director of Financial Systems

at the University of Pennsylvania Health System from 1993 to 1998. He holds an MBA from Raymond A. Mason

School of Business, William & Mary, and a bachelor's degree from University of Pennsylvania.

***Toshihiko Katsuya*** is a Non-Executive Director of Coincheck Parent. He served as President & CEO at

Aruhi Corporation (currently SBI Aruhi Corporation), a leading Japanese mortgage bank listed on the Tokyo Stock

Exchange, from April 2022 until June 2024, after joining in 2021. Before that, from 2006 to 2020, Mr. Katsuya

worked for 15 years in various positions at Monex, including as President of Monex FX, Inc. in 2010, President of

Monex Securities in 2015, COO of Monex in 2017, President of Coincheck from 2018 to 2019, and CFO of Monex

in 2019. Before Monex he worked for The Mitsubishi Bank, Ltd. (currently MUFG Bank, Ltd.) for 17 years, from

1989 to 2006, where he held various positions, including senior manager of Corporate Planning Division and VP of

Investment Banking Division for the Americas. Mr. Katsuya also assumed the positions of Director of Financial

Futures Association of Japan in 2017 and Director of Japan Virtual and Crypto Assets Exchange Association in

2019. Mr. Katsuya holds an MBA from the University of California at Berkeley and a bachelor's degree in law from

the University of Tokyo.

***Yuri Suzuki*** is a Non-Executive Director of Coincheck Parent. She is currently a senior partner at the

Tokyo office of the Japanese law firm, Atsumi & Sakai. Ms. Suzuki is also an audit & supervisory board member at

Yayoi Co., Ltd., CAMPFIRE, Inc., and was previously an outside director at Coincheck, where she was a member of

the compensation committee for six months, from June to December 2024. Ms. Suzuki also previously served as a

visiting attorney at Kirkland & Ellis LLP from September 2005 to July 2006, and as a director of the Japan Institute

of Life Insurance from 2015 to 2023, and as an auditor of FinCity.Tokyo from 2019 to 2025. She was admitted to

the bar in Japan in 2001 and to the New York State Bar in 2006. She is a member of the Japan Federation of Bar

Associations and the Daini Tokyo Bar Association. Ms. Suzuki has an LLM in Corporation Law from New York

University School of Law and a bachelor's degree in law from Waseda University.

***Jessica Sinyin Tan*** is a Non-Executive Director of Coincheck Parent. Since September 30, 2024 she has

served as President of life insurance company Sun Life Canada. Prior to Sun Life Canada, Ms. Tan was with PingAn

Group for 11 years, serving as its co-CEO and an Executive Director between 2018-2023 to lead its insurance,

digital banking, healthcare, and technology businesses. She also served on PingAn Group's related party

transactions and consumer protection committees from 2020 until 2024. Before that, Ms. Tan was a global Partner at

McKinsey & Company, working in its U.S. and Asia offices for 13 years. She is currently on several government or

non-profit advisory committees or boards, including the Monetary Authority of Singapore (MAS), the Singapore

Central Provident Fund, and AGE-WELL, Canada's technology and aging network. She also serves as a board

member for Sea Limited (NYSE: SE), a leading global consumer internet company founded in Singapore in 2009.

Ms. Tan graduated from the Massachusetts Institute of Technology (MIT) with a master's degree in Electrical

Engineering & Computer Science, as well as two bachelor's degrees in Electrical Engineering and Economics.

***Jason Sandberg*** is Chief Financial Officer of Coincheck Parent. He has also served as a Managing Director

at Thunder Bridge Capital, LLC since 2021. At Thunder Bridge Capital, LLC, he was primarily responsible, until

completion of the Business Combination, for the evaluation and analysis of equity investment opportunities for the

Thunder Bridge platform, as well as providing transaction support from a regulatory, compliance and due diligence

perspective for merger candidates. Mr. Sandberg previously worked as a partner with Grant Thornton, LLP, from

2013 through 2021. He served as an Audit Partner and was the Atlantic Coast Financial Services Practice leader. He

also spent time as a Partner in the Firm's National Professional Standards Group, focused on risk management for

the firm's high-profile public and private clients. He is a Certified Public Accountant and holds an MBA from

Temple University and a bachelor's degree in Accounting from the University of Delaware.

***Satoshi Hasuo*** is Chief Operating Officer of Coincheck Parent, as well as Chairman, Representative

Director and Executive Director of Coincheck. He started his career at The Long-Term Credit Bank of Japan in

1993. Then, after working at UBS Securities Japan Co., Ltd. and Mitsubishi Securities Co., Ltd., he joined Monex in

May 2005. He was appointed Chief Financial Officer of Monex in October 2017, and served in that position until

2019. In November 2019, Mr. Hasuo joined Coincheck, and was named Chairman, Representative Director &

Executive Officer in June 2024.

***Marc Stone*** has been Chief Legal Officer, General Counsel and Company Secretary of Coincheck Parent

since June 1, 2025, after having performed corporate legal services for the Company from March 1 to May 31, 2025.

Prior to that, from 2001-2024, he served as Chief Legal Officer and a board member (2016-2024) of TradeStation

Group, Inc. (Monex's U.S. subsidiary since June 2011 and, from January 2000 until acquired by Monex in 2011, a

Nasdaq-listed company – Nasdaq: TRAD). TradeStation Group is the parent company of U.S. self-clearing online

brokerage firms that over the years have offered stock, options, futures, forex and cryptocurrency trading platforms

for self-directed traders, and at TradeStation Mr. Stone oversaw the Legal, Compliance, Enterprise Risk, and

Internal Audit departments. From May 1997 until January 2000, Mr. Stone served as General Counsel for Omega

Research, Inc. (Nasdaq: OMGA), a trading analysis software company. Prior to joining Omega Research he was co-

head of the corporate department at Bilzin Sumberg, a leading Miami full-service law firm, working in the corporate

department at that firm from 1985 until May 1997. Mr. Stone has his bachelor's degree from Brown University and

his law degree from University of California, Berkeley, School of Law (Berkeley Law), and is a member of the bar

in New York and Florida.

**B.Compensation**

This compensation report consists of two sections:

• *Remuneration (Compensation) Policy*: This is information related to our Remuneration Policy, adopted

by the general meeting of shareholders on December 10, 2024, and attached as an exhibit to this report

and available on our website www.coincheckgroup.com (the "Remuneration Policy"). This policy

governs the remuneration for Executive Directors and Non-Executive Directors and is designed to

align remuneration of the Board with successful delivery of our long-term strategy and sustainable

long-term value creation and the interests of our stakeholders, including our shareholders.

• *Historical Compensation*: This is information related to the compensation that was earned by the

directors and members of senior management (executive officers) for the fiscal year ended March 31,

2025. It includes details on the compensation features in the past fiscal year and actual compensation

received by, or awarded to, the Executive Directors and Non-Executive Directors, as well as

Coincheck Parent's executive officers who are not directors.

The Remuneration Policy describes all director remuneration (compensation) amounts in USD.

Accordingly, all compensation amounts described in this compensation report are in USD.

**Remuneration Policy (Executive Directors and Non-Executive Directors)**

The form and amount of compensation received by the Board is determined in accordance with the

Remuneration Policy. The Remuneration Policy provides a framework to determine the compensation of the

Executive Directors and the Non-Executive Directors. The Board determines the compensation of an Executive

Director (without the involvement of the Executive Directors), while the Non-Executive Directors determine the

compensation of a Non-Executive Director. The Compensation Committee oversees the Remuneration Policy, the

remuneration plans and practices and recommends changes when appropriate. We may from time to time amend the

Remuneration Policy, subject to the general meeting of shareholders adopting such amendment with the required

majority. The Board plans to propose an amendment to the Remuneration Policy at our next annual general meeting

of shareholders in September 2025 to further ensure that it provides for a competitive remuneration and benefits

framework.

The main objective of the Remuneration Policy is to establish a competitive compensation and benefits

framework that enables us to attract, retain, and motivate Executive Directors and Non-Executive Directors who

possess the essential leadership qualities, skills, and experience to drive exceptional business performance and

promote our sustainable success. The Remuneration Policy promotes the achievement of our strategic short and

long-term performance objectives, contributing to our achievement of sustainable long-term value creation. The

Remuneration Policy establishes a framework that discourages directors from acting in their personal interest or

engaging in risk-taking that is inconsistent with our strategic objectives and corresponding risk appetite.

*Evaluation*

The Compensation Committee evaluates the objectives and structure of the Remuneration Policy at regular

intervals. In its review, the Compensation Committee specifically focuses on our ability to continue to attract and

retain qualified directors who possess the essential leadership qualities, skills, and experience to foster the

achievement of our strategic short and long-term performance objectives and our sustainable long-term value

creation.

*Determining Director Compensation and Benefits*

When determining the compensation of directors, the Board or the Non-Executive Directors and the

Compensation Committee will, to the extent applicable, address the compensation structure, the amount of fixed and

variable compensation components, the relevant performance targets for such variable compensation components,

the scenario analyses that have been conducted, and the relevant pay ratios within the group.

Before submitting a proposal regarding the compensation of individual Executive Directors, the

Compensation Committee will invite each Executive Director to express their views on the amount and structure of

their own compensation, in accordance with the DCGC.

***Compensation of Executive Directors***

On the basis of the Remuneration Policy objectives, the compensation of the Executive Directors consists

of the elements discussed below. The Executive Director compensation is determined by the Board, without

involvement of the Executive Directors.

Generally, the Executive Director compensation will include a fixed base salary and variable components

comprised of short-term incentives and long-term (equity) incentives. The aim is to achieve an appropriate ratio

between fixed and variable compensation components. In addition, an Executive Director may receive certain

perquisites and retirement and health benefits, as well as severance payment and/or change of control protections.

*Base Salary*

The base salary is cash-based compensation and is set at a level that contributes to the objectives of the

Remuneration Policy. The amount may vary depending on the Executive Director's role and responsibilities on the

Board, as well as skills, expertise and professional background of the Executive Director.

*Variable Compensation*

Executive Directors may be granted variable compensation in the form of short-term and long-term (equity)

incentives. Variable compensation aims to promote the achievement of our strategic short and long-term

performance objectives. The variable compensation of Executive Directors is determined annually by the Board, in

accordance with the Remuneration Policy, any applicable (equity) incentive plan or other compensation

arrangement.

*Short-Term Incentives*

The goal of the short-term variable compensation is to promote the achievement of our strategic short-term

performance objectives. A short-term incentive (STI) generally consists of an annual performance-based cash bonus.

STI comprises performance-based compensation that is linked to the attainment of predetermined performance

targets that promote the achievement of our strategic short-term performance objectives and may include both

financial and non-financial performance targets.

*Long-Term Incentives* 

A long-term incentive (LTI) generally consists of a performance-based equity award. LTI generally

comprises performance-based compensation that is linked to the attainment of predetermined performance targets

that promote the achievement of our strategic long-term performance objectives which generally include financial

and non-financial performance targets. The Board retains the discretionary authority to grant LTIs that are solely or

in part subject to service-based vesting criteria.

LTIs are granted under our equity incentive plan as in effect from time to time. To ensure alignment

between the interests of the Executive Directors and our long-term interests and those of our stakeholders, LTIs will,

depending on the applicable instrument, be subject to a vesting period. Additionally, the Board may impose share

ownership guidelines. During any applicable holding period, the Executive Directors will be allowed to sell a

portion of their shares to cover tax obligations.

*Adjustment and Recovery of Variable Compensation*

The Board has the authority to adjust the amount of variable compensation if payment thereof would be

considered unacceptable according to standards of reasonableness and fairness (naar maatstaven van redelijkheid en

billijkheid). The Board also has the authority to recover, in whole or in part, any variable compensation if payment

thereof was based on incorrect information about: (i) the achievement of the financial or non-financial objectives

underlying the variable compensation or (ii) the circumstances on which the variable compensation was contingent.

In addition, we may recover variable compensation pursuant to our clawback policy, as adopted on December 10,

2024 in compliance with Nasdaq rules.

*Other Benefits*

Executive Directors are eligible to receive customary fringe benefits. The provision of fringe benefits aims

to enhance the attractiveness of our compensation and benefits and to align with industry standards and best

practices.

We also have in place appropriate directors and officers (D&O) liability insurance for the benefit of the

Executive Directors (which also covers Non-Executive Directors and officers who are not also directors). The

liability insurance has been obtained from a reputable insurance provider and, in our view, provides adequate

coverage limits and scope of protection in line with industry standards. Additionally, Executive Directors will be

entitled to indemnification by Coincheck Parent, including through customary indemnification agreements.

*Loans and Guarantees*

We do not grant any loans, guarantees or similar benefits to Executive Directors.

*Severance Payment*

Executive Directors may be eligible for a severance payment upon termination of their employment.

Executive Directors will not be eligible for a severance payment in the event of (i) early termination at their own

initiative, (ii) termination for cause, or (iii) due to seriously culpable or negligent behavior on the part of the

Executive Director.

***Compensation of Non-Executive Directors***

On the basis of the Remuneration Policy objectives, the compensation of the Non-Executive Directors

consists of the elements discussed below. Non-Executive Director compensation is determined by the Non-

Executive Directors.

Generally, Non-Executive Directors are awarded a fixed annual fee, which may be payable in cash and/or

equity awards. Non-Executive Director compensation seeks to align with their roles and responsibilities on the

Board and its committees, as well as the time devoted to their duties and responsibilities.

*Annual Cash Retainer*

Each Non-Executive Director may be eligible to receive an annual cash retainer of up to $150,000 (which

may be prorated if the term of service is less than a full year). Any annual cash retainer will be paid in quarterly or

monthly arrears. There are no separate fees for attending meetings of the Board or any committee. The Lead Non-

Executive Director may be eligible for an additional annual cash retainer of up to $30,000.

*Committee Annual Cash Retainer*

Each Non-Executive Director serving on one of the Board committees receives an annual fee (which may

be prorated if the term of service is less than a full year) of up to the following amounts:

• Audit Committee:

-Committee Chair: $30,000

-Other members: $20,000

• Compensation Committee:

-Committee Chair: $20,000

-Other members: $10,000

• Nominating and Corporate Governance Committee:

-Committee Chair: $20,000

-Other members: $10,000

• Risk Committee:

-Committee Chair: $20,000

-Other members: $10,000

*Equity Compensation*

The Non-Executive Directors may be eligible to receive an annual share or share-based award of up to

$250,000, which will not be subject to performance conditions.

To ensure alignment between the interests of the Non-Executive Directors and our sustainable long-term

value creation, the Non-Executive Directors may impose share ownership guidelines for the Non-Executive

Directors, pursuant to which the Non-Executive Directors may in principle not dispose of their shares until they

meet the minimum holding. If share ownership guidelines are imposed, the Non-Executive Directors will be allowed

to sell a portion of their shares to cover tax obligations.

*Other Benefits*

Non-Executive Directors are eligible for reimbursement of expenses and costs reasonably incurred in

connection with the performance of their duties and responsibilities. In addition, our liability insurance covers Non-

Executive Directors and they are entitled to indemnification by the Coincheck Parent, including through customary

indemnification agreements.

Non-Executive Directors are not eligible for additional benefits such as retirement benefits or participation

in a pension plan, or benefits related to a removal from office.

*Loans and Guarantees*

We do not grant any loans, guarantees or similar benefits to Non-Executive Directors.

**Historical Compensation for the Fiscal Year Ended March 31, 2025**

**Executive Directors**

*Base Salary*

The base salary earned by the Executive Directors\* for the fiscal year ended March 31, 2025 amounted to:

• $0 for the Executive Chairperson;

• $240,000 for the Chief Executive Officer; and

• $0 for the Chief Planning Officer.

\*The Executive Chairperson is also Chairman of the Board of Monex, and receives no separate or

additional compensation from the Company. The Chief Executive Officer's service for Coincheck Parent

commenced December 2024, so the dollar amount stated is base salary from December 2024 through March 2025.

The Chief Planning Officer is also an executive of Monex, and has received no separate compensation from the

Company as of March 31, 2025; however, beginning April 1, 2025, Coincheck Parent reimburses Monex 50% of his

base salary paid by Monex to allocate between Coincheck Parent and Monex the base salary expense for the Chief

Planning Officer.

*Short-Term Incentives*

No STI bonus was paid to any Executive Director during Coincheck Parent's fiscal year ended March 31,

2025. The Chief Executive Officer is eligible to receive his first STI bonus during Coincheck Parent's fiscal year

ending March 31, 2026.

*Long-Term Incentives*

On December 10, 2024, the Coincheck Group 2024 Omnibus Incentive Plan (the "Omnibus Incentive

Plan") was adopted in connection with the closing of the Business Combination, following which Coincheck

Parent's Ordinary Shares were listed on Nasdaq (on December 11, 2024). The purpose of the Omnibus Incentive

Plan is to provide a means through which to attract and retain key personnel and to provide a means whereby our

directors, officers, employees, consultants and advisors can acquire and maintain an equity interest in us, or be paid

incentive compensation, including incentive compensation measured by reference to the value of our Ordinary

Shares, thereby strengthening their commitment to our enduring success and aligning their interests with those of

our other stakeholders. The Omnibus Incentive Plan is included as an exhibit to this report.

The Company's equity compensation to date has been in the form of restricted share units (RSUs),

however, no RSU grants were made by the Company to directors (or executive officers) prior to April 1, 2025 (i.e.,

no equity grants were made by the Company during its fiscal year ended March 31, 2025). The earliest partial

vesting date for any grant made after March 31, 2025 (subject to accelerated vesting in the event of a termination

without cause or a change in control) is March 31, 2026.

*Total Compensation*

The total compensation for the Executive Directors for the fiscal year ended March 31, 2025, which

consists solely of base salary and benefits for Coincheck Parent's Chief Executive Officer (as explained earlier),

amounts to $249,073.

**Non-Executive Directors**

The Non-Executive Directors each received, after March 31, 2025, a cash retainer of $70,000 (to cover the

period December 10, 2024 through the date of the annual general meeting to be held in September 2025). Non-

Executive Directors acting as members of Board committees received an additional fee for that period in accordance

with the Remuneration Policy.

No LTI grants had been made to any Non-Executive Director as of March 31, 2025. The vesting date for

grants made after March 31, 2025 is the date of the annual general meeting to be held in September 2025.

The cash retainer amounts for Board and Board committee service, as well as the amounts for the LTI

grants, for the period December 10, 2024 through the date of the annual general meeting to be held in September

2025, were set forth in Non-Executive Director engagement agreements dated December 10, 2024.

**Summary Board Compensation** 

The total compensation received by all of the members of the Board for the fiscal year ended March 31,

2025 amounts to $249,073, which is the same as the total compensation paid to the Executive Directors (and which

is what was paid to our Chief Executive Officer). This is because during this period: (i) as noted earlier, the Chief

Executive Officer was the only Executive Director who received compensation; (ii) no fees for Board or Board

committee service had been paid as of March 31, 2025 (these fees are paid on a quarterly basis, and the first

installment was paid in April 2025 and the second in July 2025); (iii) even though the Chief Executive Officer is

awarded variable cash compensation (target annual cash bonus compensation), as of March 31, 2025 no

determination was made as to the amount of cash bonus compensation, if any, he will be awarded for his first year of

employment with Coincheck Parent; and (iv) no share-based compensation was awarded to any director prior to

April 1, 2025.

**Senior Management (Executive Officers of Coincheck Parent Who are not Directors)**

The compensation received by members of senior management who do not also serve as directors

(executive officers) was determined based on principles aimed to ensure talent retention and align the compensation

with our strategy, our performance and each individual's contribution to such performance. As of the date of this

report, Coincheck Parent's executive officers (who are not directors) are the Chief Financial Officer, Chief

Operating Officer (who is also the Chairman of Coincheck) and the Chief Legal Officer.

Coincheck Parent, including through its subsidiaries, has entered into, and may in the future enter into,

compensatory arrangements with certain of its executive officers in consideration for the services provided to the

Company, which may include cash and equity components and customary benefits. Coincheck Parent entered into

an employment agreement with its Chief Financial Officer on December 10, 2024, and with its Chief Legal Officer

effective as of June 1, 2025.

No LTI grants had been made to any executive officer as of March 31, 2025. The earliest partial vesting

date for any grant made after March 31, 2025 (subject to accelerated vesting in the event of a termination without

cause or a change in control) is March 31, 2026.

**Total Compensation Paid to All Directors and Officers of Coincheck Parent as a Group**

For the fiscal year ended March 31, 2025, the total compensation paid to all directors and officers as a

group, including executive officers who are not directors, was $997,794.

**Pay Ratio**

The internal pay ratio for the fiscal quarter ended March 31, 2025 (the Company's first full fiscal quarter

following the completion of the Business Combination and Coincheck Parent's listing on Nasdaq) is set out in the

table below.

---

| | |
|:---|:---|
|  | For Three <br>Months Ended <br>March 31, 2025<br>|
| Total wage costs | 4199763 |
| Chief Executive Officer labor cost | 186805 |
| Total labor cost (Net of Chief Executive Officer) | 4012958 |
| Full time equivalent | 236 |
| Average cost | 17004 |
| Pay Ratio | 11.0:1 |

---

This internal pay ratio, based on the Dutch Corporate Governance Code, is calculated as the ratio between

(i) the total annual compensation of the Chief Executive Officer and (ii) the average annual compensation of the

employees of Coincheck Parent and the group companies whose financial data Coincheck Parent consolidates,

where:

• the total annual compensation of the Chief Executive Officer includes all compensation components, as

included in the consolidated financial statements;

• the average annual compensation of the employees is determined by dividing the total wage costs in

the financial year (as included in the consolidated financial statements) by the average number of full

time equivalent during the fiscal year; and

• the value of the share-based compensation is determined at the time of assignment, in line with the

applicable rules under the applied reporting requirements.

**C.Board Practices**

Please refer to "Item 6.A—Directors and Senior Management" and "Item 6.B—Compensation" for

additional information concerning the Directors required by this item.

**Board Committees**

Our Board has established the following standing committees: an audit committee (the "Audit Committee"), a

compensation committee (the "Compensation Committee"), a nominating and corporate governance committee (the

"Nominating and Corporate Governance Committee"), and a risk committee (the "Risk Committee"). The

composition and responsibilities of each committee are described below. Our Board may also establish from time to

time any other committees that it deems necessary or desirable. Members serve on these committees until their

resignation or until otherwise determined by the Board. Jessica Sinyin Tan, Allerd Derk Stikker, Toshihiko Katsuya,

Yuri Suzuki, David Burg and Takashi Oyagi qualify as independent directors under the Nasdaq listing standards and

the independence standards of Rule 10A-3 of the Exchange Act. The chair of each committee is referred to as its

"Committee Chair."

***Audit Committee***

Our Audit Committee consists of Allerd Derk Stikker, Toshihiko Katsuya and Yuri Suzuki, with Allerd Derk

Stikker serving as Committee Chair and as the audit committee financial expert. Our Audit Committee is responsible

for, among other things:

• selecting and preparing the nomination of our independent auditors, and determining the audit and non-

audit services to be performed by our independent auditors;

• assisting the Board in evaluating the qualifications, performance and independence of and the relation

with our independent auditors;

• assisting the Board in monitoring the quality and integrity of our financial statements and our

accounting and financial reporting, including any published interim reports, related press releases and

other related corporate communications;

• assisting the Board in monitoring our compliance with legal and regulatory requirements;

• assisting the Board with its compliance with recommendations and observations of our internal and

independent auditors;

• reviewing the adequacy and effectiveness of our internal control over financial reporting processes;

• assisting the Board in monitoring the performance of our internal audit function;

• monitoring the performance of our internal audit function;

• reviewing with management and our independent auditors our annual and quarterly financial

statements;

• assisting the Board with the Company's financing;

• assisting the Board with respect to risk management and risk assessment guidelines and policies,

including major financial risk exposure, strategic, operational, compliance and reporting risks and the

steps taken to monitor and control such risks;

• assisting the Board with the Company's policy on tax planning adopted by management;

• assisting the Board with the Company's policy on reservations and dividends; and

• establishing procedures for the receipt, retention and treatment of complaints received by us regarding

accounting, internal accounting controls or auditing matters and the confidential, anonymous

submission by our employees of concerns regarding questionable accounting or auditing matters.

***Compensation Committee***

Our Compensation Committee consists of Takashi Oyagi, Allerd Derk Stikker and Jessica Sinyin Tan, with

Takashi Oyagi serving as Committee Chair. The Compensation Committee is responsible for, among other things:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;submitting clear and understandable proposals to the Board concerning the Remuneration Policy to be

pursued with regard to the Board;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and proposing corporate goals and objectives relevant to the compensation of our CEO,

evaluating our CEO's performance in light of those goals and objectives, and, either as a committee or

together with the other Non-Executive Directors, proposing our CEO's compensation level based on

such evaluation to the Board;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;proposing to the Board any amendments to the Remuneration Policy to be pursued by the Company as

the Compensation Committee deems necessary or appropriate;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and approving, and recommending to the Board, the compensation of our other executive

officers, including annual base salary, bonus and equity-based incentives and other benefits;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and recommending the compensation of the Board;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;submitting a proposal concerning the compensation of individual Executive Directors;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;preparing the remuneration report in accordance with Section 3.4.1 of the Dutch Corporate Governance

Code;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing compensation disclosure included in our annual report on Form 20-F and other filings with the

SEC; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and making recommendations with respect to our equity compensation plans.

***Nominating and Corporate Governance Committee***

Our Nominating and Corporate Governance Committee consists of Toshihiko Katsuya, Takashi Oyagi and

Jessica Sinyin Tan, with Toshihiko Katsuya serving as Committee Chair. The Nominating and Corporate

Governance Committee is responsible for, among other things:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;drawing up the selection criteria and appointment procedures for directors of the Company;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assisting the Board in identifying prospective director nominees and making proposals to the Non-

Executive Directors for the nomination and re-nomination of directors, as applicable, to be appointed by

the general meeting of the Board, taking into account the profile of Non-Executive Directors;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;overseeing the evaluation of the Board and management;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the periodic assessment of the size and composition of the Board and as appropriate, making proposals

for a composition profile of the Board;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the periodic assessment of the performance of individual directors, and reporting on this to the Board;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;drawing up a plan for the succession of directors;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;supervision of the policy on the selection and appointment criteria for senior management;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing developments in corporate governance practices and developing and recommending a set of

corporate governance guidelines; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;recommending members for each committee of the Board.

***Risk Committee***

Our Risk Committee consists of David Burg, Toshihiko Katsuya and Yuri Suzuki, with David Burg serving as

Committee Chair. The Risk Committee is responsible for, among other things:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and making recommendations to the Board, and/or Audit Committee, as applicable, with

respect to the enterprise risk management framework of the Company, including, but not limited to:

(a) the risk governance structure; (b) the risk competencies of the Company; (c) the Company's risk

tolerance; (d) the risk management strategy and associated risk management initiatives and how both

support the business strategy and business model of the Company; and (e) the risk management elements

of the Company's strategy;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and making recommendations to the Board with respect to the Company's risk exposure;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and making recommendations to the Board with respect to the Company's compliance with

risk policies covering all known material risks of the Company and related control requirements; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;reviewing and making recommendations to the Board with respect to the application by the Company of

information and communication technology, including risks relating to cybersecurity.

**Code of Business Conduct and Ethics**

We have adopted a Code of Business Conduct and Ethics that applies to our all directors, officers (including

our principal executive officer, principal financial officer, principal accounting officer or controller or persons

performing similar functions) and employees of our corporate group, and to anyone to whom we have made the code

applicable by contract or otherwise. Our Code of Business Conduct and Ethics is posted on our website and is a

"code of ethics," as defined in Item 406(b) of Regulation S-K. We will make any legally required disclosures

regarding amendments to, or waivers of, provisions of our Code of Business Conduct and Ethics on our website.

**D.Employees**

As of March 31, 2025, we had 191 full-time employees (excluding directors, executive officers, audit and

supervisory board members, contract employees, temporary employees, and temporary staff), 36.6% of which were

engineers and product development. We include engineers and product developers as a large component of our

employee base to enable our abilities to innovate rapidly to maintain a competitive edge. We work to identify,

attract, and retain employees who are aligned with and will help us progress our mission.

**E.Share Ownership**

Information regarding the ownership of Ordinary Shares and Warrants by our Directors and members of

our senior management team is set forth in *Item 7.A* of this report.

**F.Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation**

Not applicable.

**Item 7. Major Shareholders and Related Party Transactions**

**A.Major Shareholders**

The table below in this section sets forth information regarding the beneficial ownership of Ordinary Shares

as of the date hereof by:

• each person known by us to be the beneficial owner of more than 5% of Ordinary Shares;

• each of our directors and executive officers; and

• all our directors and executive officers as a group.

Beneficial ownership is determined according to the rules of the SEC, which generally provide that a

person has beneficial ownership of a security if that person possesses sole or shared voting or investment power over

that security. A person is also deemed to be a beneficial owner of securities that such person has a right to acquire

within 60 days including, without limitation, through the exercise of any option, warrant or other right or the

conversion of any other security. Such securities are deemed to be outstanding only for the purpose of computing the

percentage beneficial ownership of that person, and are not deemed to be outstanding for the purpose of computing

the percentage beneficial ownership of any other person. Under these rules, more than one person may be deemed to

be a beneficial owner of the same securities.

Percentage of beneficial ownership is based on 130,814,526 Ordinary Shares issued and outstanding and

2,365,278 Ordinary Shares held in treasury as of the date of this report. As of the date of this report, our total issued

share capital is 133,179,804 Ordinary Shares.

Unless otherwise indicated in the footnotes under the table below, we believe that all persons named in the

table below have sole voting and investment power with respect to all Ordinary Shares beneficially owned by them.

---

| | | |
|:---|:---|:---|
|  | **Number of** <br>**Ordinary**<br>**Shares**<br>| **% of Total** <br>**Ordinary** <br>**Shares**<sup>(1)</sup>**/Voting** <br>**Power** |
| **Directors and Executive Officers** |  |  |
| Oki Matsumoto<sup>(2)</sup> |  |  |
| Gary A. Simanson<sup>(3)</sup> | 4325584 | 3.3% |
| Yo Nakagawa |  |  |
| Takashi Oyagi |  |  |
| Allerd Derk Stikker |  |  |
| David Burg |  |  |
| Toshihiko Katsuya |  |  |
| Yuri Suzuki |  |  |
| Jessica Sinyin Tan |  |  |
| Jason Sandberg |  |  |
| Satoshi Hasuo |  |  |
| Marc Stone |  |  |
| All executive officers and directors as a group (twelve individuals) | 4325584 | 3.3% |
| **Principal Shareholders** |  |  |
| Monex Group, Inc. | 109097910 | 83.4% |
| Koichiro Wada | 9700464 | 7.4% |

---

____________

<sup>(1)</sup> Excludes Ordinary Shares held in treasury.

<sup>(2)</sup> As of March 31, 2025, Mr. Matsumoto held a total of 23,190,700 shares, or approximately 9.14%, of Monex, 1,110,500

shares directly and 22,080,200 shares indirectly through Matsumoto Co., Ltd (MOMO & Co.). Notwithstanding his

ownership in Monex (a publicly traded company on the Tokyo Stock Exchange) and his role as Chairman of the Board of

Monex, Mr. Matsumoto disclaims the beneficial ownership of Ordinary Shares held by Monex as he does not exercise

voting and investment discretion for Monex with respect to such shares.

<sup>(3)</sup> Includes 129,611 Ordinary Shares issuable upon the exercise of Private Warrants held by TBCP IV, LLC (Thunder

Bridge Sponsor). Mr. Simanson may be deemed to beneficially own Ordinary Shares held by TBCP IV, LLC, which are

reported in the table above by virtue of his control over TBCP IV, LLC as its managing member. Mr. Simanson disclaims

beneficial ownership of Ordinary Shares held by TBCP IV, LLC other than to the extent of his pecuniary interest in such

shares.

**B.Related Party Transactions**

We from time to time engage in transactions with related parties, including intra-group transactions. These

related parties include entities and individuals that may be capable of exercising control or significant influence over

our company, including Monex and companies controlled by Monex. In addition, members of our Board and our

audit and supervisory board and their respective families may also be considered related parties. Transactions with

related parties for the most part are commercial transactions undertaken in the ordinary course of business and on

commercial terms that are normal in the respective markets, considering the characteristics of the goods or services

involved. Please see Note 29 to our consolidated financial statements as of and for the year ended March 31, 2025

included elsewhere in this report for further details on our related party transactions.

**Certain Financing and Commercial Contracts**

Transactions with our related companies (which include transactions with Thunder Bridge or its affiliate

between the date of entering into the Business Combination Agreement in March 2022 and completing the Business

Combination in December 2024, to help support completing the Business Combination) include or have included:

• a currently unused subordinated line of credit for Coincheck, for a total of up to ¥6,000 million, with

Monex Finance Corporation, a subsidiary of Monex;

• currency forward transactions with Monex's brokerage subsidiary to purchase $1.2 million in exchange

for Japanese yen, which was settled on July 31, 2024;

• certain cross-selling transactions with Monex's brokerage firm subsidiary related to the buying and

selling of held crypto assets;

• a loan agreement for a line of credit (in USD) with Monex Finance Corporation, as lender, and

Coincheck Parent, as borrower, originally dated December 11, 2024, as amended and restated as of

March 31, 2025, for the purpose of operating capital, with a maximum borrowing amount of $16

million (¥2,400 million), with $5 million (¥751 million) outstanding as of March 31, 2025 (and $12.5

million outstanding as of the date of this report), and interest that accrues on the unpaid amount at a

rate of 135 basis points above the Secured Overnight Financing Rate as published by the Federal

Reserve Bank of New York;

• a business management services agreement with Monex that was terminated prior to completing the

Business Combination, which covered services such as guidance, consulting and support for general

management functions; the consideration payable was calculated as 5% of Coincheck's total revenue

net of cost of sales (variable fees), and for the fiscal years ended March 31, 2023, 2024 and 2025,

Coincheck paid a total of ¥363 million, ¥458 million and ¥397 million, respectively;

• in connection with supporting the Business Combination, a $100,000 line of credit (in USD) from

Monex to Coincheck Parent, dated September 22, 2022, and terminated on March 31, 2025, under

which the remaining balance of $10,733 was repaid in February 2025;

• in connection with supporting the Business Combination, a promissory note (in USD) for a total of up

to $1,500,000 with Thunder Bridge Sponsor, as borrower, and Thunder Bridge (now a subsidiary of

Coincheck Parent, renamed CCG Administrative Services, Inc.), as lender, of which $300,791 was

outstanding as of December 31, 2024 and was repaid in full on January 15, 2025;

• in connection with supporting the Business Combination, loans (in USD) by Monex to an affiliate of

Thunder Bridge in September 2023 and October 2024 of $1.2 million and $600,000, respectively, each

bearing interest at a rate of 8.0%, both fully repaid on December 16, 2024; and

• a reimbursement arrangement for shared executive expense, effective April 1, 2025, under which

Coincheck Parent and Monex share equally the base salary compensation expense of Executive

Director Yo Nakagawa, who is also an executive of Monex.

**Certain Other Agreements**

***Sponsor Support Agreement***

Contemporaneously with the execution of the Business Combination Agreement, Thunder Bridge Sponsor

entered into the Sponsor Support Agreement, pursuant to which, among other things, Thunder Bridge Sponsor

agreed (i) to vote in favor of the Business Combination; and (ii) to the lock-up restrictions set forth in such Sponsor

Support Agreement.

***Monex Support Agreement***

Contemporaneously with the execution of the Business Combination Agreement, Thunder Bridge,

Coincheck Parent and Monex entered into the Monex Support Agreement, pursuant to which, among other things,

Monex agreed (i) to vote in favor of the Coincheck Parent restructuring and Coincheck Parent reorganization (the

conversion of the Company's legal form, without ceasing to exist, from a Dutch private limited liability company

(B.V.) to a Dutch public limited liability company (N.V.)), in each case as contemplated by the Business

Combination Agreement, and (ii) the lock-up restrictions set forth in such Monex Support Agreement.

***Lock-Up Agreements***

Contemporaneously with the execution of the Business Combination Agreement, Coincheck, Coincheck

Parent and equity holders of Coincheck entered into lock-up agreements, pursuant to which, among other things,

each equity holder agreed to lock-up restrictions.The lock-up periods for Ordinary Shares expire on December 10,

2025, subject to earlier expiration, in whole or in part, if the Ordinary Shares trade at a price per share, for at least 30

consecutive trading days, of at least $15.00 (one-third), $17.50 (two-thirds) or $20.00 (all). The lock-up periods on

Private Warrants expired March 10, 2025.

***Registration Rights Agreements***

Pursuant to the Business Combination Agreement certain Thunder Bridge stockholders who received our

Ordinary Shares, the Thunder Bridge Sponsor, Monex and other shareholders of Coincheck (collectively, the

"Holders") entered into a Registration Rights Agreement with Coincheck Parent pursuant to which, among other

things, Coincheck Parent agreed to use its reasonable best efforts to file, and cause to be declared effective as soon

as practicable after filing, a registration statement to permit the public resale under the Securities Act of all the

securities held by the Holders from time to time as permitted by Rule 415 under the Securities Act on the terms and

conditions specified in the Registration Rights Agreement. This has been completed. This Registration Rights

Agreement also permits underwritten takedowns and provides for customary "piggy-back" registration rights. In

connection with the Next Finance acquisition, we agreed to register the Ordinary Shares acquired by Next Finance's

shareholders for resale under the Securities Act (which was completed in the same registration statement that

covered the above-described registration pursuant to the Business Combination Agreement).

**C.Interests of Experts and Counsel**

Not applicable.

**Item 8. Financial Information**

**A.Consolidated Statements and Other Financial Information**

**Consolidated Financial Statements**

The audited Consolidated Financial Statements and the report of our independent registered public

accounting firm are appended at the end of this report, starting on page F-1, which is attached as Exhibit 99.1 hereto.

**Legal Proceedings**

We are involved in litigation and other legal proceedings from time to time in connection with the ordinary

course of our business. We do not believe any current litigation or other legal proceedings that we are a party to, if

determined adversely to us, could potentially, individually or in the aggregate have a material adverse impact on our

business, financial condition or results of operations.

**Dividend Policy**

We have not paid any cash dividends on our Ordinary Shares to date and have no current plans to pay cash

dividends on Ordinary Shares for the foreseeable future. The payment of cash dividends in the future will be

dependent upon our revenue and earnings, if any, capital requirements, general financial condition, and plans and

strategies for the use of our available cash. The payment of annual dividends may be resolved upon by the general

meeting of shareholders and any interim cash dividends will be within the discretion of our Board, or the general

meeting of shareholders at the proposal by our Board, at such time. The ability of the general meeting of

shareholders and the Board to declare dividends (including interim dividends) is limited to requirements (including

capital requirements) specified in our Articles of Association and Dutch law and may also be limited by restrictive

covenants pursuant to any debt financing agreements. See, also, "Material Dutch Tax Considerations of Acquiring,

Owning or Disposing of Ordinary Shares — Withholding Tax" in this report for a summary of the Dutch dividend

withholding tax regime applicable to dividends distributed by us.

**B.Significant Changes**

Except as otherwise disclosed within this report, no significant changes have occurred since the date of the

Consolidated Financial Statements.

**Item 9. The Offer and Listing**

**A.Offer and Listing Details**

Ordinary Shares and Public Warrants are listed on Nasdaq under the symbols "CNCK" and "CNCKW,"

respectively.

**B.Plan of Distribution**

Not applicable.

**C.Markets**

See "—*Offer and Listing Details*" above.

**D.Selling Shareholders**

Not applicable.

**E.Dilution**

Not applicable.

**F.Expenses of the Issue**

Not applicable.

**Item 10. Additional Information**

**A.Share Capital**

As of the date of this report, there were 130,814,526 Ordinary Shares issued and outstanding. There are

2,365,278 Ordinary Shares held in treasury. There are also 4,860,148 warrants outstanding, each exercisable at

$11.50 per one Ordinary Share, of which 4,730,537 are Public Warrants listed on Nasdaq and 129,611 are Private

Warrants held by TBCP IV, LLC.

**B.Memorandum and Articles of Association**

*Set forth below is a description of the material terms of our Articles of Association and certain related* 

*applicable provisions of Dutch law. The following description is intended as a summary only and does not constitute* 

*legal advice regarding those matters and should not be regarded as such. The description is qualified in its entirety* 

*by reference to the full text of our Articles of Association, which are filed as an exhibit to this report. We urge you to* 

*read the full text of the Articles of Association.*

**Coincheck Parent Overview**

Coincheck Group B.V. was incorporated on February 18, 2022, as a private limited liability company

(*besloten vennootschap met beperkte aansprakelijkheid*) governed by Dutch law and, on December 10, 2024,

changed its legal form to a Dutch public limited liability company (*naamloze vennootschap*) governed by Dutch law

and was renamed Coincheck Group N.V. Coincheck Parent has its corporate seat in Amsterdam, the Netherlands,

and its registered office is at Nieuwezijds Voorburgwal 162, 1012 SJ Amsterdam. Coincheck Parent is registered in

the Trade Register of the Chamber of Commerce (*Kamer van Koophandel*) in the Netherlands under number

85546283. **Share Capital**

*Authorized Share Capital*

Under Dutch law, the authorized share capital of a public limited liability company is the maximum capital

that the company may issue without amending the Articles of Association. At least one fifth of the authorized share

capital must at all times be issued. Pursuant to the Articles of Association, Coincheck Parent's authorized share

capital amounts to €4,000,000, divided into 400,000,000 ordinary shares with a nominal value of €0.01 each.

*Issued Share Capital*

As of the date of this report, (i) the total issued share capital of Coincheck Parent is comprised of 133,179,804

Ordinary Shares, (ii) there are 130,814,526 Ordinary Shares issued and outstanding, (iii) there are 2,365,278

Ordinary Shares held in treasury and (iv) there are also 4,860,148 warrants outstanding, each exercisable at $11.50

per one Ordinary Share, of which 4,730,537 are Public Warrants listed on Nasdaq and 129,611 are Private Warrants

held by the Thunder Bridge Sponsor.

*Form of Ordinary Shares*

All Ordinary Shares are held in registered form. No share certificates are issued.

*Issuance of Shares*

The Articles of Association provide that Ordinary Shares may be issued and rights to subscribe for such shares

may be granted pursuant to a resolution adopted by (i) Coincheck Parent's general meeting at the proposal of the

Board, or (ii) if so authorized by Coincheck Parent's general meeting, by the Board. For as long as, and to the extent

that the authorization referred to under (ii) is effective, Coincheck Parent's general meeting will not have the power

to resolve to issue Ordinary Shares or grant rights to subscribe for such shares. Pursuant to Dutch law, the

authorization referred to under (ii) may be granted, and subsequently extended, in each case for a period not

exceeding five years. The authorization cannot be withdrawn, unless determined otherwise at the time of the

authorization. The resolution to authorize the Board as corporate body authorized to issue Ordinary Shares and grant

rights to subscribe for shares must state the maximum number of shares that may be issued under the authorization.

No general meeting resolution or resolution of the Board is required for the issuance of shares pursuant to the

exercise of previously granted rights to subscribe for shares.

*Preemptive Rights*

Pursuant to Dutch law and the Articles of Association, each shareholder has a preemptive right in proportion

to the aggregate amount of its Ordinary Shares upon the issuance of new Ordinary Shares or the grant of rights to

subscribe for such shares, except in cases where Ordinary Shares are issued or rights thereto are granted: (i) to

employees of the Coincheck Parent, (ii) against payment other than in cash, or (iii) to persons exercising a

previously granted right to subscribe for Ordinary Shares.

Pursuant to the Articles of Association, the preemptive rights in respect of newly issued Ordinary Shares or

rights to subscribe for such shares, may be restricted or excluded by a resolution of the Board if and insofar as it has

been designated as corporate body authorized for that purpose by Coincheck Parent's general meeting. The Board

may only be designated in accordance with the preceding sentence to the extent that it is also designated as corporate

body authorized to resolve upon the issuance of Ordinary Shares and grant of rights to subscribe for such shares. The

designation may be granted, and subsequently extended, in each case for a period not exceeding five years, and

cannot be withdrawn, unless determined otherwise at the time of designation. If the Board is not designated as

described above, Coincheck Parent's general meeting may resolve to limit or exclude the preemptive rights in

respect of issuances of Ordinary Shares and grant rights to subscribe for shares, but only at the proposal of the

Board.

*Purchase and Repurchase of Ordinary Shares*

Pursuant to Dutch law, neither Coincheck Parent nor its subsidiaries may subscribe for Ordinary Shares to be

issued. Coincheck Parent and its subsidiaries may acquire (repurchase) Ordinary Shares, subject to the applicable

provisions and restrictions of Dutch law and the Articles of Association, to the extent that: (i) the Ordinary Shares

are fully paid-up, (ii) if the Ordinary Shares are repurchased for valuable consideration, such repurchase would not

cause Coincheck Parent's shareholders' equity (*eigen vermogen*) to fall below an amount equal to the sum of the

paid-up and called-up part of the issued share capital and the reserves that Coincheck Parent must maintain pursuant

to Dutch law and the Articles of Association, and (iii) immediately after the acquisition of such Ordinary Shares,

Coincheck Parent, together with its subsidiaries, would not hold, as shareholders or pledgees, shares having an

aggregate nominal value that exceeds 50% of Coincheck Parent's issued share capital. In addition, neither

Coincheck Parent nor its subsidiaries may hold more than one-tenth of its issued share capital for more than

three years after it was converted into a public limited liability company (*naamloze vennootschap*) or after it

acquired its own shares (i) for no consideration or (ii) under universal succession of title (*algemene titel*).

Coincheck Parent may only acquire Ordinary Shares if Coincheck Parent's general meeting has authorized the

Board to do so. Such an authorization may be granted for a maximum period of 18 months and must specify the

number of Ordinary Shares that may be acquired, the manner in which they may be acquired and the relevant price

range. No authorization is required for the acquisition of Ordinary Shares for no valuable consideration or under

universal succession of title, or if the Ordinary Shares are acquired by Coincheck Parent with the intention of

transferring them to Coincheck Parent's employees or employees within Coincheck Parent pursuant to an applicable

arrangement.

In line with market practice for Dutch listed companies, the Board has been irrevocably authorized, for a

period of 18 months following the Closing Date, to have Coincheck Parent acquire fully paid-up Ordinary Shares up

to the maximum number of 10% of Coincheck Parent's issued share capital in the aggregate.

Coincheck Parent cannot derive any right to any distribution or any voting rights from any repurchased

Ordinary Shares. Coincheck Parent's subsidiaries that have acquired Ordinary Shares will not be entitled to exercise

their voting rights or to receive any dividends on such shares.

*Capital Reduction*

Coincheck Parent's general meeting may resolve to reduce Coincheck Parent's issued share capital by

(i) cancelling Ordinary Shares, or (ii) reducing the nominal value of the Ordinary Shares through an amendment of

the Articles of Association (provided that the nominal value of an Ordinary Share cannot be less than EUR 0.01

under Dutch law). In either case, the reduction would be subject to applicable statutory provisions, including the

observance of a two-month creditor opposition period.

A resolution to cancel Ordinary Shares may only relate to Ordinary Shares held by Coincheck Parent itself or

in respect of which Coincheck Parent holds the depositary receipts. A resolution to reduce Coincheck Parent's

issued share capital requires a majority of at least two/thirds of the votes cast at Coincheck Parent's general meeting

if less than half of the issued share capital is represented at the meeting concerned. If half of the issued share capital

or more is represented at the general meeting, the resolution may be adopted with a simple majority of votes cast.

*Transfer of Shares*

Pursuant to Dutch law and the Articles of Association, the Ordinary Shares are freely transferable. Under

Dutch law and the Articles of Association, the transfer of Ordinary Shares (other than in book-entry form) or the

creation of a right *in rem* on such shares will require a written deed for that purpose and, unless Coincheck Parent is

a party to the deed, written acknowledgement by or proper service upon Coincheck Parent to be effective.

Pursuant to the Articles of Association, for as long as one or more Ordinary Shares are listed and admitted to

trading on a regulated foreign stock exchange, the Board may resolve, in accordance with applicable Dutch law, that

the laws of the State of New York, United States of America, rather than Dutch law shall apply to the property law

aspects of the Ordinary Shares included in the part of the shareholders' register kept outside the Netherlands by the

relevant transfer agent appointed by the Board for that purpose.

*Discriminating Provisions*

There are no provisions in the Articles of Association that discriminate against a shareholder because of its

ownership of a certain number of Ordinary Shares. There are no particular limitations on the rights to own Ordinary

Shares, including on the rights of non-resident or foreign shareholders to hold or exercise voting rights imposed by

foreign law or governing documents.

**Distributions**

Coincheck Parent may only make distributions (whether interim or annual) on the Ordinary Shares if its equity

exceeds the sum of its paid-up and called-up capital and the reserves it must maintain pursuant to Dutch law and the

Articles of Association. Coincheck Parent does not anticipate making any distributions on Ordinary Shares in the

foreseeable future.

*Distribution of Dividends*

Pursuant to Dutch law and the Articles of Association, the distribution of dividends may only take place after

the adoption of Coincheck Parent's annual accounts which show that the distribution is permitted. The Board may

resolve to reserve all or part of Coincheck Parent's profits. Any profits remaining after the reservation referred to in

the previous sentence shall be at the disposal of the general meeting. Coincheck Parent's general meeting may

resolve to distribute the remaining profits to Coincheck Parent's shareholders. Coincheck Parent's general meeting,

at the proposal of the Board, may resolve that part of the distribution is made in kind, including in the form of

Ordinary Shares, or in a currency other than the Euro.

*Interim Distributions*

Subject to the provisions of Dutch law and the Articles of Association, the Board, or Coincheck Parent's

general meeting at the proposal of the Board, may resolve upon interim distributions on the Ordinary Shares to be

charged to Coincheck Parent's freely distributable reserves. For this purpose, the Board must prepare an interim

statement of assets and liabilities, reflecting that (i) the capital requirements set out above are met, and

(ii) Coincheck Parent has sufficient funds available for distribution. Interim distribution may be made in cash or in

kind, including in the form of Ordinary Shares.

**General Meetings**

*Location*

Coincheck Parent general meetings are held in Amsterdam, Haarlemmermeer (which includes Schiphol

Airport), The Hague or Rotterdam, the Netherlands. In deviation from the foregoing and to the extent permitted by

law, the Board may decide that a general meeting is only accessible by electronic means in accordance with the

applicable legal provisions.

*Annual General Meeting*

Coincheck Parent must hold at least one general meeting per year. This annual general meeting must be held

within six months after the end of Coincheck Parent's fiscal year.

*Other General Meetings*

In addition to the annual general meeting, a general meeting must also be held within three months after the

Board has determined it to be likely that Coincheck Parent's equity has decreased to an amount equal to or lower

than half of its paid-up and called-up capital, in order to discuss the measures to be taken if so required. If the Board

fails to hold such general meeting in a timely manner, each shareholder or other person entitled to attend the general

meeting may be authorized by the Dutch court to convene a general meeting.

Additional general meetings are also held whenever required under Dutch law or considered appropriate by

the Board. Pursuant to Dutch law and the Articles of Association, one or more shareholders solely or jointly

representing at least 10% of the issued share capital of Coincheck Parent may request the Board to convene a

general meeting. If the Board does not take the steps necessary to ensure that the requested general meeting is to be

held within six weeks after the request, the requesting shareholder(s) may, at their request, be authorized by the

Dutch court to convene a general meeting, subject to the fulfillment of certain requirements.

*Convocation*

Coincheck Parent's general meetings shall be convened by a notice, which includes the location, day and time

of the meeting as well as an agenda stating the items to be discussed, which in case of the annual general meeting

must include the adoption of Coincheck Parent's annual accounts, the appropriation of profits and losses and

proposals relating to the Board, including the appointment and reappointment of directors and filling of any

vacancies. In addition, the agenda for a general meeting must contain such items as the Board or the

person(s) convening the meeting determine.

Pursuant to Dutch law and the Articles of Association, one or more shareholders solely or jointly representing

at least 3% of the issued share capital of Coincheck Parent have the right to request the inclusion of additional items

on the agenda of a general meeting. Such requests must be made in writing, substantiated and received no later than

the 60<sup>th</sup> before the day of the relevant general meeting. No resolutions shall be adopted on items other than those that

have been included in the agenda. Under the Articles of Association, certain agenda items can only be put on the

agenda as a voting item by the Board. However, shareholders that meet the relevant requirements set out above may

still request the inclusion of such items on the agenda as a discussion item.

*Notice*

Coincheck Parent will give notice of each general meeting by publication on its website and, to the extent

required by applicable law, in a Dutch daily nationally distributed newspaper, and in any other manner that may be

required to follow in order to comply with Dutch law and applicable Nasdaq and SEC requirements. The Articles of

Association and Dutch law provide that general meetings of Coincheck Parent will be convened by the Board, no

later than on the 15<sup>th</sup> day prior to the day of the meeting.

*Record Date*

Pursuant to Dutch law and the Articles of Association, the Board may determine a record date

(*registratiedatum*) of 28 calendar days prior to the day of the general meeting to establish which shareholders and

persons with meeting rights are entitled to attend and, if applicable, vote at the general meeting. The record date, if

any, and the manner in which shareholders can register and exercise their rights will be set out in the notice of the

general meeting. The Articles of Association provide that a shareholder must notify Coincheck Parent in writing of

his or her identity and his or her intention to attend (or be represented at) the general meeting, such notice to be

received by Coincheck Parent on the date set by the Board in accordance with the Articles of Association and as set

forth in the convening notice.

*Chair*

Pursuant to the Articles of Association, general meetings will be presided over by the Executive Chairperson.

If the Executive Chairperson is absent or unable to preside over the general meeting, the Lead Non-Executive

Director, or in case of his or her absence or inability, the Vice-Chairperson, if any, will preside. If all of the

aforementioned are absent or unable to act, the general meeting will be presided by any other person designated for

that purpose by the Board. The chair of the general meeting appoints a secretary of the general meeting.

**Shareholder Decision-Making**

*Voting Rights*

Pursuant to the Articles of Association, each Ordinary Share confers the right to cast one vote at the general

meeting. The voting rights attached to any Ordinary Shares held by Coincheck Parent or its direct or indirect

subsidiaries are suspended. Nonetheless, the holders of a right of usufruct or a pledge on Ordinary Shares in favor of

a party other than Coincheck Parent or a direct or indirect subsidiary are not excluded from the right to vote such

shares if the right of usufruct or right of pledge was created prior to the time the shares concerned were acquired by

Coincheck Parent or any of its subsidiaries. Coincheck Parent may not exercise voting rights for Ordinary Shares in

respect of which it or any of its subsidiaries has a right of usufruct or pledge. The holder of a usufruct or pledge on

shares shall have the voting rights attached thereto if so provided for when the usufruct or pledge was created.

Ordinary Shares which are not entitled to be voted on pursuant to the foregoing will not be taken into account for the

purpose of determining the number of shares on which votes may be cast or the amount of share capital that is

present or represented at a general meeting.

Under the Articles of Association, blank votes (votes where no choice has been made), abstentions and invalid

votes shall not be counted as votes cast. However, shares in respect of which a blank vote or invalid vote has been

cast, and shares in respect of which the person with meeting rights who is present or represented at the meeting has

abstained from voting, are counted when determining the part of the issued share capital that is present or

represented at a general meeting.

*Majority Requirements*

Unless Dutch law or Coincheck Parent provide otherwise, all resolutions adopted at a general meeting will be

adopted by a simple majority of votes cast. In the event of a tied vote, the proposal concerned will be rejected.

*Quorum Requirements*

The Articles of Association do not provide for quorum requirements generally applicable to general meetings

of Coincheck Parent. Resolutions of the general meeting of Coincheck Parent may be adopted irrespective of the

issued share capital present or represented at such general meeting, unless Dutch law or the Articles of Association

stipulate otherwise.

*Major Transactions*

Pursuant to Dutch law and the Articles of Association, resolutions of the Board concerning a material change

in Coincheck Parent's identity, character or business are subject to the approval of the general meeting.

Aforementioned changes include: (i) a transfer of all or virtually all of Coincheck Parent's business to a third party,

(ii) the entry into or termination of a long-term cooperation of Coincheck Parent or of a subsidiary with another

entity or company, or as a fully liable partner of a limited partnership or partnership, if this cooperation or

termination thereof is of significant importance to Coincheck Parent, and (iii) the acquisition or disposal of an

interest in the capital of a company by Coincheck Parent or by a subsidiary with a value of at least one/third of the

value of Coincheck Parent's assets, according to the balance sheet with explanatory notes or, if Coincheck Parent

prepares a consolidated balance sheet, according to the consolidated balance sheet with explanatory notes as

reflected in Coincheck Parent's most recently adopted annual accounts.

*Amendment of Articles of Association, Legal Merger and Demerger*

The general meeting may only resolve upon (i) an amendment of the Articles of Association, and (ii) a legal

merger or legal demerger to which Coincheck Parent is a party, at the proposal of the Board. A resolution to amend

the Articles of Association or to effect a legal merger or legal demerger requires a simple majority of the votes cast

in the general meeting.

*Dissolution and Liquidation*

The general meeting may only resolve upon the dissolution of Coincheck Parent at the proposal of the Board.

A resolution to dissolve Coincheck Parent requires a simple majority of the votes cast in the general meeting. If

Coincheck Parent is dissolved, its liquidation will be carried out by the Board, unless the general meeting decides

otherwise at the proposal of the Board.

If Coincheck Parent is dissolved and its assets are liquidated, any assets remaining after all Coincheck Parent's

debts have been settled will be for the benefit of Coincheck Parent's shareholders in proportion to the aggregate

nominal value of the Ordinary Shares held by each of them.

***Board of Directors***

*Board Structure and Composition*

Pursuant to the Articles of Association, Coincheck Parent has a one-tier board comprised of one or more

executive directors and one or more non-executive directors. Subject to the approval of the general meeting, the

Board will determine the number of executive and non-executive directors serving on the Board, provided that the

majority will consist of Non-Executive Directors. The Board currently is currently composed of nine members.

*Independence*

At least three directors on the Board shall qualify as independent under the listing rules of Nasdaq, and the

majority of the Non-Executive Directors shall qualify as independent within the meaning of the DCGC.

*Nomination and Appointment*

Pursuant to the Articles of Association, the directors will be appointed by Coincheck Parent's general meeting

upon a non-binding (non-exclusive) nomination by the Board. In accordance with Dutch law, Executive Directors

may not participate in the Board's deliberations and decision-making process regarding such nomination. A

resolution to appoint a director will require a majority of votes cast at the general meeting.

*Term of Appointment*

Unless resolved otherwise by Coincheck Parent's general meeting at the proposal of the Board, directors will

be subject to annual re-election and will be appointed for a term ending at the close of the first annual general

meeting of Coincheck Parent held following their appointment.

*Suspension and Dismissal*

Coincheck Parent's general meeting may at all times suspend or dismiss a director of Coincheck Parent.

Pursuant to the Articles of Association, a resolution to suspend or dismiss a director will require a majority of the

votes cast in a general meeting. The Board may at all times resolve to suspend an Executive Director.

*Vacancies and Inability to Act*

Pursuant to the Articles of Association, in case of any vacancy on the Board or the inability to act of a director,

a temporary director may be designated by the Board. The temporary replacement will hold office until the earlier of

(i) his death, disability, retirement, resignation, disqualification or dismissal from the Board, (ii) the end of the next

annual general meeting (or such general meeting convened earlier to fill the vacancy) and (iii) such time as the

vacancy, or inability of the director, in respect of which he or she was designated as temporary replacement is

resolved.

*Board Duties*

The Executive Directors serving on the Board will primarily be responsible for all day-to-day management

and operations of Coincheck Parent. The Non-Executive Directors will, among other things, supervise the Executive

Directors' performance of duties and Coincheck Parent's general affairs and its business, and will render their

advice and direction to the Executive Directors. The Non-Executive Directors will furthermore perform any duties

allocated to them under or pursuant to Dutch law or the Articles of Association. The Executive Directors will timely

provide the Non-Executive Directors with all information they need in order to properly carry out their duties.

The Board may allocate its duties and powers among its members and the committees of the Board in or in

accordance with the board regulations or otherwise in writing.

*Titles and Roles*

The Board may in its discretion grant its members titles.

*Board Committees*

The Board is to have the following standing committees: (i) Audit Committee, (ii) Compensation Committee,

(iii) Nominating and Corporate Governance Committee, and (iv) Risk Committee. The Board may from time to time

by resolution establish and maintain other committees (whether standing or *ad hoc*). The regulations applicable to

the committees of the Board are in committee charters.

*Liability of Directors*

Pursuant to Dutch law, each member of the Board may be held jointly and severally liable to Coincheck Parent

for damages in the event of improper or negligent performance of his or her duties. Furthermore, directors may be

held liable to third parties based on tort pursuant to certain provisions of the Dutch Civil Code ("DCC"). All

members of the Board will be jointly and severally liable for failure of one or more co-directors. An individual

director will only be exempt from liability if he or she proves that he or she cannot be held culpable for the

mismanagement and that he or she has not been negligent in seeking to prevent the consequences of the

mismanagement. In this regard, a member of the Board may, however, refer to the allocation of tasks among the

directors.

*Board Regulations*

Pursuant to the Articles of Association, the Board has adopted regulations dealing with its internal

organization, the manner in which decisions are taken, the place and manner in which meetings are held, the

composition, duties and organization of its committees and any other matters concerning the Board, its members and

its committees.

*Board Decision-Making*

Pursuant to the Articles of Association, unless the board regulations provide otherwise, the Board may only

adopt resolutions at a meeting if the majority of the members entitled to vote is present or represented, and

resolutions will be adopted by a majority of the votes cast. Each member of the Board shall have one vote in the

Board's decision-making. In case of a tied vote, the Executive Chairperson shall have a casting vote.

*Conflict of Interest*

A member of the Board will not participate in the Board's deliberations and decision-making process if such

director has a direct or indirect personal conflict of interest with Coincheck Parent and its associated business

enterprise. If the Board is unable to adopt a resolution as a result of all directors being unable to participate in the

deliberations and decision-making process due to a conflict of interest, the resolution may nevertheless by adopted

by the Board.

*Representation*

The Board as a whole and the Executive Chairperson individually are authorized to represent Coincheck

Parent. The Board may authorize one or more persons, whether or not employees by Coincheck Parent, to represent

Coincheck Parent, whether or not on a continuing basis.

**Listing of Securities**

Ordinary Shares and Public Warrants are listed on Nasdaq under the symbols "CNCK" and "CNCKW,"

respectively. Holders of Ordinary Shares and Public Warrants should obtain current market quotations for their

securities.

**Transfer Agent and Registrar**

Coincheck Parent has listed the Ordinary Shares in registered form and such Ordinary Shares, through the

transfer agent, are uncertificated. Coincheck Parent has appointed Continental Stock Transfer & Trust Company as

its agent in New York to maintain Coincheck Parent's shareholders' register on behalf of the Board, and to act as

transfer agent and registrar for the Ordinary Shares. The Ordinary Shares are traded on Nasdaq in book-entry form.

The warrant agent for the Warrants is also Continental Stock Transfer & Trust Company.

**Certain Anti-Takeover Provisions of Dutch Law**

*No Arrangement of Protective Measures in the Articles of Association*

Under Dutch law, various protective measures for a Dutch company against takeovers are possible and

permissible within the boundaries set by Dutch statutory law and Dutch case law. It is not anticipated that Coincheck

Parent will adopt any protective measures.

*Response Times Based on the DCGC and DCC*

In accordance with the DCGC, a shareholder may only request the inclusion of an item on the agenda after

consulting the Board in that respect. If one or more shareholders intend to request that an item be put on the agenda

for a general meeting that may result in a change in Coincheck Parent's strategy, pursuant to the DCGC the Board

may invoke a response time of a maximum of 180 days until the day of the general meeting.

Furthermore, under Dutch law, a statutory response time of 250 days applies. If the shareholder(s') request

entails a proposal for a change to the composition of the Board or of corresponding provisions in the Articles of

Association, the Board may invoke a 250-day response time. During this time, the general meeting cannot vote on

the requested proposals; the proposals may however be discussed during the general meeting at the request of the

relevant shareholder(s). The Board must use the 250-day response time to collect the information it needs in order to

come to a prudent decision regarding the shareholder(s') request(s). The Board must prepare a report on the policy

and course of action pursued, and this report must be placed on Coincheck Parent's website. The report must also

(as a discussion item) be placed on the agenda of the first general meeting held after the response time has ended.

**Limitation on Liability and Indemnification of Directors and Officers**

The general meeting of Coincheck Parent may resolve to annually discharge the directors, to release them

from any loss, damage or right to compensate arising out of or in connection with the exercise of their duties and

which appear from the annual report and annual accounts of Coincheck Parent or as otherwise disclosed to the

general meeting.

The Articles of Association also include a provision on indemnification. Pursuant to the Articles of

Association and unless Dutch law provides otherwise, Coincheck Parent is required to indemnify any and all of the

directors, officers, former directors, former officers and any person who may have served at its request as a director

or officer of a subsidiary of Coincheck Parent, who were or are made a party or are threatened to be made a party or

are involved in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal,

administrative, arbitrative or investigative, or any appeal in that regard or any inquiry or investigation that could lead

to such an action, suit or proceeding (a "Proceeding"), against any and all liabilities, damages, documented expenses

(including attorney's fees), financial effects of judgments, fines, penalties (including excise and similar taxes and

punitive damages) and amounts paid in settlement in connection with such Proceeding by any of them.

Notwithstanding Coincheck Parent's obligation to indemnify and hold harmless as referred to above, no

indemnification will be made (i) in respect of any claim, issue or matter as to which any of the above-mentioned

indemnified persons will be adjudged in a final and non-appealable decision to be liable for gross negligence or

willful misconduct in the performance of such person's duty to Coincheck Parent or (ii) to the extent that the costs or

the capital losses of the above-mentioned indemnified persons are paid by another party or are covered by an

insurance policy and the insurer has paid out these costs or capital losses.

The indemnification described above will not be exclusive of any other rights to which those indemnified may

be entitled.

Pursuant to the Articles of Association, the indemnification described above may be further implemented in

indemnification agreements or otherwise.

Coincheck Parent also maintains an insurance policy which insures directors and officers against certain

liabilities which might be incurred in connection with the performance of their duties.

The description of indemnity herein is merely a summary of the provisions in the Articles of Association

described above, and such description shall not limit or alter the mentioned provisions in the Articles of Association

or other indemnification agreements entered into.

**C.Material Contracts** 

The Business Combination was completed on December 10, 2024. Please see "NOTE ON

PRESENTATION—Accounting Treatment of Business Combination," "*Item 3.D: Risk Factors—Risks Relating to* 

*our Ordinary Shares*," "*Item 4.A: Information on the Company—History and Development of the Company—*

*Business Combination and Current Organizational Structure*," "*Item 6: Directors, Senior Management and* 

*Employees—Board Structure*," and "I*tem 12.B: Description of Securities other than Equity Securities—Warrants* 

*and Rights*." Also, see descriptions of our financing and commercial contracts with Monex or its subsidiaries in

"*Item 7.B: Major Shareholders and Related Party Transactions—Related Party Transactions*."

**D.Exchange Controls**

There are no governmental laws, decrees, regulations or other legislation in the Netherlands that may affect

the import or export of capital, including the availability of cash and cash equivalents for use by Coincheck Parent,

or that may affect the remittance of dividends, interest, or other payments by Coincheck Parent to non-resident

holders of its ordinary shares, other than potential withholding taxes. There is no limitation imposed by Dutch laws

or in Coincheck Parent's Articles of Association on the right of non-residents to hold or vote shares.

**E.Taxation**

**Certain U.S. Federal Income Tax Consequences to U.S. Holders**

The following discussion describes certain U.S. federal income tax consequences of the ownership and

disposition of Ordinary Shares and Warrants. This discussion deals only with Ordinary Shares and Warrants, in each

case, that are held as capital assets by a U.S. Holder (as defined below).

As used herein, the term "U.S. Holder" means a beneficial owner of Ordinary Shares or Warrants that is, for

U.S. federal income tax purposes, any of the following:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an individual who is a citizen or resident of the United States;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or

organized in or under the laws of the United States, any state thereof or the District of Columbia;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a trust if it (1) is subject to the primary supervision of a court within the United States and one or more

United States persons have the authority to control all substantial decisions of the trust or (2) has a valid

election in effect under applicable United States Treasury regulations to be treated as a United States

person.

This discussion is based upon provisions of the Internal Revenue Code of 1986, as amended (the "Code"), and

regulations, rulings and judicial decisions thereunder, as well as the Convention Between the United States of

America and the Kingdom of the Netherlands for the Avoidance of Double Taxation and the Prevention of Fiscal

Evasion with respect to Taxes on Income (the "Treaty"), all as of the date hereof. Those authorities may be changed,

perhaps retroactively, so as to result in U.S. federal income tax consequences different from those summarized

below.

This discussion does not represent a detailed description of the U.S. federal income tax consequences

applicable to you if you are subject to special treatment under the U.S. federal income tax laws, including if you are:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a dealer or broker in securities or currencies;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a financial institution;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a regulated investment company;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a real estate investment trust;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;an insurance company;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a tax-exempt organization;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a person holding Ordinary Shares or Warrants as part of a hedging, integrated or conversion transaction,

a constructive sale or a straddle;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a trader in securities that has elected the mark-to-market method of accounting for your securities;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a person liable for alternative minimum tax;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a person who owns or is deemed to own 10% or more of our stock (by vote or value);

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a person required to accelerate the recognition of any item of gross income with respect to Ordinary

Shares or Warrants as a result of such income being recognized on an applicable financial statement; or

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a person whose "functional currency" is not the U.S. dollar.

If a partnership (or other entity or arrangement treated as a partnership for U.S. federal income tax purposes)

holds Ordinary Shares or Warrants, the tax treatment of a partner will generally depend upon the status of the partner

and the activities of the partnership. If you are a partnership or a partner of a partnership holding Ordinary Shares,

you should consult your tax advisors.

This discussion does not contain a detailed description of all the U.S. federal income tax consequences to you

in light of your particular circumstances and does not address the Medicare tax on net investment income,

U.S. federal estate and gift taxes or the effects of any state, local or non-U.S. tax laws.

**If you are considering the purchase of Ordinary Shares or Warrants, you should consult your own tax** 

**advisors concerning the particular U.S. federal income tax consequences to you of the ownership and** 

**disposition of Ordinary Shares or Warrants, as applicable, as well as the consequences to you arising under** 

**other U.S. federal tax laws and the laws of any other taxing jurisdiction.**

***Taxation of Dividends***

Subject to the discussion under "— Passive Foreign Investment Company" below, the gross amount of

distributions on the Ordinary Shares (including any amounts withheld to reflect Dutch withholding taxes)will be

taxable as dividends to the extent paid out of our current or accumulated earnings and profits, as determined under

U.S. federal income tax principles. To the extent that the amount of any distribution exceeds our current and

accumulated earnings and profits for a taxable year, the distribution will first be treated as a tax-free return of

capital, causing a reduction in your tax basis in your Ordinary Shares, and to the extent the amount of the

distribution exceeds your tax basis, the excess will be taxed as capital gain recognized on a sale or exchange. We do

not, however, expect to determine earnings and profits in accordance with U.S. federal income tax principles.

Therefore, you should expect that a distribution will generally be reported as a dividend.

Any dividends that you receive (including any withheld taxes) will be includable in your gross income as

ordinary income on the day actually or constructively received by you. Such dividends will not be eligible for the

dividends received deduction generally allowed to corporations under the Code.

Subject to applicable limitations (including a minimum holding period requirement), dividends received by

non-corporate U.S. Holders from a qualified foreign corporation may be treated as "qualified dividend income" that

is subject to reduced rates of taxation. A qualified foreign corporation includes a foreign corporation that is eligible

for the benefits of a comprehensive income tax treaty with the United States which the United States Treasury

Department determines to be satisfactory for these purposes and which includes an exchange of information

provision. The United States Treasury Department has determined that the Treaty meets these requirements. A

foreign corporation is also treated as a qualified foreign corporation with respect to dividends paid by that

corporation on shares that are readily tradable on an established securities market in the United States. U.S. Treasury

Department guidance indicates that Ordinary Shares, which are listed on the NASDAQ, are readily tradable on an

established securities market in the United States. There can be no assurance, however, that Ordinary Shares will be

considered readily tradable on an established securities market in the United States in later years. You should consult

your own tax advisors regarding the application of these rules to your particular circumstances.

Notwithstanding the foregoing, we will not be treated as a qualified foreign corporation, and non-corporate

U.S. Holders will not be eligible for reduced rates of taxation on any dividends received from us, if we are a passive

foreign investment company in the taxable year in which such dividends are paid or in the preceding taxable year

(see "— Passive Foreign Investment Company" below).

The amount of any dividend paid in euros will equal the U.S. dollar value of theeuros received calculated by

reference to the exchange rate in effect on the date the dividend is actually or constructively received by you,

regardless of whether the euros are converted into U.S. dollars. If the euros received as a dividend are converted into

U.S. dollars on the date they are received, you generally will not be required to recognize foreign currency gain or

loss in respect of the dividend income. If the euros received as a dividend are not converted into U.S. dollars on the

date of receipt, you will have a basis in the euros equal to their U.S. dollar value on the date of receipt. Any gain or

loss realized on a subsequent conversion or other disposition of the euroswill be treated as United States source

ordinary income or loss.

Subject to certain conditions and limitations (including a minimum holding period requirement), Dutch

withholding taxes on dividends may be treated as foreign taxes eligible for credit against your U.S. federal income

tax liability. For purposes of calculating the foreign tax credit, dividends paid on the Ordinary Shares will be treated

as income from sources outside the United States and will generally constitute passive category income. However,

Treasury regulations addressing foreign tax credits (the "Foreign Tax Credit Regulations") impose additional

requirements for foreign taxes to be eligible for a foreign tax credit if the relevant taxpayer does not elect to apply

the benefits of an applicable income tax treaty, and there can be no assurance that those requirements will be

satisfied if you do not elect to apply the benefits of the Treaty. The Department of the Treasury and the Internal

Revenue Service (the "IRS") are considering proposing amendments to the Foreign Tax Credit Regulations. In

addition, recent notices from the IRS provide temporary relief by allowing taxpayers that comply with applicable

requirements to apply many aspects of the foreign tax credit regulations as they previously existed (before the

release of the current Foreign Tax Credit Regulations) for taxable years ending before the date that a notice or other

guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other

guidance).Instead of claiming a foreign tax credit, you may be able to deduct Dutch withholding taxes on dividends

in computing your taxable income, subject to generally applicable limitations under United States law (including

that a U.S. Holder is not eligible for a deduction for otherwise creditable foreign income taxes paid or accrued in a

taxable year if such U.S. Holder claims a foreign tax credit for any foreign income taxes paid or accrued in the same

taxable year). The rules governing the foreign tax credit and deductions for foreign taxes are complex. You are

urged to consult your tax advisors regarding the Foreign Tax Credit Regulations (and the related temporary relief in

the IRS notices) and the availability of a foreign tax credit or a deduction under your particular circumstances.

Distributions of Ordinary Shares or rights to subscribe for Ordinary Shares that are received as part of a pro

rata distribution to all of our shareholders generally will not be subject to U.S. federal income tax. Consequently,

such distributions generally will not give rise to foreign source income, and you generally will not be able to use a

foreign tax credit for any Dutch withholding tax imposed on such distributions unless such credit can be applied

(subject to applicable limitations) against U.S. federal income tax due on other income derived from foreign sources.

***Possible Constructive Distributions***

The terms of each Warrant provide for an adjustment to the number of Ordinary Shares for which the Warrant

may be exercised or to the exercise price of the Warrant in certain events. An adjustment that has the effect of

preventing dilution is generally not treated as a constructive distribution. Nevertheless, a U.S. Holder of a Warrant

will generally be treated as receiving a constructive distribution from us if, for example, the adjustment increases the

holder's proportionate interest in our assets or earnings and profits (e.g., through an increase in the number of

Ordinary Shares that would be obtained upon exercise of such warrant) as a result of a distribution of cash to the

holders of Ordinary Shares. Any such constructive distribution will generally be subject to tax as described above

under "–*Taxation of Dividends*" in the same manner as if the U.S. Holder of such Warrant had received a cash

distribution from us in an amount equal to the fair market value of such increased interest.

***Passive Foreign Investment Company***

Based on the past and projected composition of our income and assets, and the valuation of our assets,

including goodwill, we do not believe we were a PFIC for our most recent taxable year, and we do not expect to

become a PFIC in the current taxable year or the foreseeable future, although there can be no assurance in this

regard.

In general, we will be a PFIC for any taxable year in which:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at least 75% of our gross income is passive income, or

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;at least 50% of the value (generally determined based on a quarterly average) of our assets is attributable

to assets that produce or are held for the production of passive income.

For this purpose, passive income generally includes dividends, interest, royalties and rents (other than royalties

and rents derived in the active conduct of a trade or business and not derived from a related person). In addition,

cash and other assets readily convertible into cash are generally considered passive assets. If we own at least 25%

(by value) of the stock of another corporation, for purposes of determining whether we are a PFIC, we will be

treated as owning our proportionate share of the other corporation's assets and receiving our proportionate share of

the other corporation's income.

The determination of whether we are a PFIC is made annually. Accordingly, it is possible that we may become

a PFIC in the current or any future taxable year due to changes in our asset or income composition or in the value of

our assets. There can be no assurance that Coincheck Parent will not be treated as a PFIC for any taxable year. If we

are a PFIC for any taxable year in which you hold Ordinary Shares, you will generally be subject to certain adverse

U.S. federal income tax consequences described below for that year and for each subsequent year in which you hold

the Ordinary Shares (even if we do not qualify as a PFIC in such subsequent years). However, if we cease to be a

PFIC, you can avoid the continuing impact of the PFIC rules by making a special election to recognize gain as if

your Ordinary Shares had been sold on the last day of the last taxable year during which we were a PFIC (such

election, the "Deemed Sale Election"). You are urged to consult your own tax advisor about this election.

If we are a PFIC for any taxable year during which you hold Ordinary Shares and you do not make a timely

mark-to-market election or "qualified electing fund" election, each as described below, you will be subject to certain

adverse U.S. federal income tax consequences with respect to gain realized from a sale or other taxable disposition

of such Ordinary Shares (or shares of any of Coincheck Parent's subsidiaries that are lower-tier PFICs, as discussed

below) and certain distributions received on such Ordinary Shares (or shares of any of the Company's subsidiaries

that are lower-tier PFICs). U.S. Holders should consult their tax advisors regarding the application of the PFIC rules

to their investment in the Company.

If we are a PFIC for any taxable year during which you hold Ordinary Shares and any of our non-

U.S. subsidiaries is also a PFIC, you will be treated as owning a proportionate amount (by value) of the shares of the

lower-tier PFIC for purposes of the application of the PFIC rules. You are urged to consult your tax advisors about

the application of the PFIC rules to any of our subsidiaries.

In lieu of being subject to the adverse U.S. federal income tax consequences discussed above, you may make a

mark-to-market election with respect to Ordinary Shares provided such Ordinary Shares are treated as "marketable

stock." The Ordinary Shares generally will be treated as marketable stock if they are regularly traded on a "qualified

exchange or other market" (within the meaning of the applicable Treasury regulations).

If you make an effective mark-to-market election, for each taxable year that we are a PFIC you will include as

ordinary income the excess of the fair market value of your Ordinary Shares at the end of the year over your

adjusted tax basis in your Ordinary Shares. You will be entitled to deduct as an ordinary loss in each such year the

excess of your adjusted tax basis in the Ordinary Shares over their fair market value at the end of the year, but only

to the extent of the net amount previously included in income as a result of the mark-to-market election. Your

adjusted tax basis in your Ordinary Shares will be increased by the amount of any income inclusion and decreased

by the amount of any deductions under the mark-to-market rules. In addition, upon the sale or other disposition of

Ordinary Shares in a year that we are a PFIC, any gain will be treated as ordinary income and any loss will be

treated as ordinary loss to the extent of the net amount previously included in income as a result of the mark-to-

market election, and thereafter as capital loss.

If you make a mark-to-market election, it will be effective for the taxable year for which the election is made

and all subsequent taxable years unless the Ordinary Shares are no longer regularly traded on a qualified exchange

or other market, or the IRS consents to the revocation of the election. However, because a mark-to-market election

cannot be made for any lower-tier PFICs that we may own, you will generally continue to be subject to the adverse

U.S. federal income tax consequences discussed above with respect to your indirect interest in any such lower-tier

PFIC. You are urged to consult your tax advisor about the availability of the mark-to-market election, and whether

making the election would be advisable in your particular circumstances. Currently, a mark-to-market election may

not be made with respect to the Warrants.

Alternatively, you can sometimes avoid the adverse U.S. federal income tax consequences in respect of PFIC

shares, described above, by electing to treat a PFIC as a "qualified electing fund" under Section 1295 of the Code. A

"qualified electing fund" election (a "QEF election") requires you to include currently in income each year your pro

rata share of a PFIC's ordinary earnings and net capital gains (as ordinary income and long-term capital gain,

respectively), regardless of whether or not such earnings and gains are actually distributed. Thus, you could have a

tax liability with respect to such earnings or gains without a corresponding receipt of cash. Your basis in the shares

of a qualified electing fund will be increased to reflect the amount of the taxed but undistributed income.

Distributions of income that had previously been taxed will result in a corresponding reduction of basis in the shares

and will not be taxed again as a distribution to you. You must make a QEF election if you wish to have this

treatment. To make a QEF election, you will need to have an annual information statement from the PFIC setting

forth the earnings and capital gains for the year. If we determine that Coincheck Parent (or a lower-tier PFIC

subsidiary, if applicable) is a PFIC for any taxable year, we will endeavor to provide a PFIC annual information

statement with respect to Coincheck Parent (or the lower-tier PFIC subsidiary, if applicable) for such taxable year.

However, there can be no assurance that we will know whether Coincheck Parent is a PFIC or that it will provide the

PFIC annual information statement.

You should consult your own tax advisors as to the consequences of the QEF election (including the

consequences of making a retroactive election, which may be permitted in particular circumstances, such as if you

had a reasonable belief that we were not a PFIC and filed a protective election).

The application of the PFIC rules to Warrants is unclear. Proposed Treasury regulations issued under the PFIC

rules generally treat an "option" (which would include a Warrant) to acquire the stock of a PFIC as stock of the

PFIC, while final Treasury regulations issued under the PFIC rules provide that the QEF election does not apply to

options and no mark-to-market election (discussed above) is currently available with respect to options. Therefore, if

the proposed Treasury regulations are finalized in their current form, U.S. Holders of Warrants would be subject to

the PFIC rules described above, but would not be able to make any PFIC elections with respect to Warrants.

However, a U.S. Holder may make a QEF election with respect to an Ordinary Share acquired upon the

exercise of a Warrant and a QEF election previously made with respect to Ordinary Shares will apply to Ordinary

Shares newly acquired upon exercise of a Warrant. Notwithstanding such QEF election, the adverse tax

consequences relating to PFIC shares, adjusted to take into account the current income inclusions resulting from the

QEF election, will continue to apply with respect to such newly acquired Ordinary Shares (which under proposed

regulations will be deemed to have a holding period for purposes of the PFIC rules that includes the period the

U.S. Holder held Warrants), unless the U.S. Holder makes a purging election under the PFIC rules (such as the

Deemed Sale Election discussed above). U.S. Holders should consult with their own tax advisors regarding the

application of the PFIC rules to Warrants.

You will generally be required to file IRS Form 8621 if you hold Ordinary Shares in any year in which we are

classified as a PFIC. You are urged to consult your tax advisors concerning the U.S. federal income tax

consequences of holding Ordinary Shares if we are considered a PFIC in any taxable year.

***Taxation of Gains or Losses***

For U.S. federal income tax purposes, you will recognize taxable gain or loss on any sale, exchange or other

taxable disposition of Ordinary Shares or Warrants in an amount equal to the difference between the amount realized

for the Ordinary Shares or Warrants, as applicable, and your tax basis in your Ordinary Shares or Warrants, as

applicable, in each case determined in U.S. dollars. Subject to the discussion under "— Passive Foreign Investment

Company" above, such gain or loss will generally be capital gain or loss and will generally be long-term capital gain

or loss if you have held the Ordinary Shares or Warrants for more than one year. Long-term capital gains of non-

corporate U.S. Holders (including individuals) are eligible for reduced rates of taxation. The deductibility of capital

losses is subject to limitations. Any gain or loss recognized by you will generally be treated as U.S. source gain or

loss.

***Acquisition of Ordinary Shares pursuant to Warrants***

Subject to the PFIC rules discussed above, a U.S. Holder will generally not recognize gain or loss upon the

exercise of a Warrant for cash. An Ordinary Share acquired pursuant to the exercise of a Warrant for cash will

generally have a tax basis equal to the U.S. Holder's tax basis in the Warrant increased by the amount paid to

exercise the Warrant.

It is unclear whether a U.S. Holder's holding period for the Ordinary Share will commence on the date of

exercise of the Warrant or the day following the date of exercise of the Warrant; in either case, the holding period

will not include the period during which the U.S. Holder held the Warrant.

If a Warrant is allowed to lapse unexercised, a U.S. Holder will generally recognize a capital loss equal to such

holder's tax basis in the Warrant, as applicable.

The tax consequences of a cashless exercise of a Warrant are not clear under current U.S. federal income tax

law. A cashless exercise may be tax-free, either because the exercise is not a realization event or because the

exercise is treated as a recapitalization for U.S. federal income tax purposes. In either case, a U.S. Holder's tax basis

in the Ordinary Share received will generally equal the U.S. Holder's tax basis in the Warrant. If a cashless exercise

is not a realization event, it is unclear whether a U.S. Holder's holding period for the Ordinary Share received on

exercise would be treated as commencing on the date of exercise of the Warrant or the following day. If a cashless

exercise is treated as a recapitalization, the holding period of the Ordinary Share received will include the holding

period of the Warrant.

It is also possible that a cashless exercise of a Warrant could be treated as a taxable exchange in which gain or

loss is recognized. In such an event, a U.S. Holder will be deemed to have surrendered Warrants with an aggregate

fair market value equal to the exercise price for the total number of Warrants to be exercised. The U.S. Holder will

recognize capital gain or loss in an amount equal to the difference between the fair market value of the Warrants

deemed surrendered and the U.S. Holder's tax basis in the applicable warrants. In this case, a U.S. Holder's tax basis

in the Ordinary Shares received will equal the sum of the U.S. Holder's tax basis in the Warrants exercised and the

exercise price of the applicable warrants. It is unclear whether a U.S. Holder's holding period for the Ordinary

Shares would commence on the date of exercise of the Warrants or the day following the date of exercise of the

Warrants.

There can be no assurance regarding which, if any, of the alternative tax characterizations and holding periods

described above would be adopted by the IRS or a court of law. Accordingly, U.S. Holders should consult their tax

advisors regarding the tax consequences of a cashless exercise of Warrants.

If we redeem the Warrants for cash pursuant to the redemption provisions of the Warrants or if we purchase

Warrants in an open market transaction, such redemption or purchase will generally be treated as a taxable

disposition of the applicable Warrants by the U.S. Holder, which will generally be subject to tax as described above

under "— *Taxation of Gains or Losses.*"

***Information Reporting and Backup Withholding***

In general, information reporting will apply to dividends in respect of Ordinary Shares and the proceeds from

the sale, exchange or other disposition of Ordinary Shares or Warrants that are paid to you within the United States

(and in certain cases, outside the United States), unless you establish that you are an exempt recipient. A backup

withholding tax may apply to such payments if you fail to provide a taxpayer identification number and a

certification that you are not subject to backup withholding or if you fail to report in full dividend and interest

income.

Backup withholding is not an additional tax and any amounts withheld under the backup withholding rules

will be allowed as a refund or a credit against your U.S. federal income tax liability provided the required

information is timely furnished to the IRS.

**Material Japanese Tax Considerations of Acquiring, Owning or Disposing of Ordinary Shares**

***Ordinary Shares***

The following discussion addresses certain Japanese tax consequences of acquiring, owning or disposing, as

the case may be, of the Ordinary Shares by Japanese and non-Japanese Holders.

This section is intended as general information only. Prospective holders of Ordinary Shares should consult

their own tax adviser regarding the Japanese tax consequences of any acquisition, holding or disposal of Ordinary

Shares.

*Non-Japanese Holders*

No particular tax consequences are expected to arise in Japan as a result of the acquiring, owning or disposing

of the Ordinary Shares for a holder that is not a resident of Japan.

*Japanese Holders*

The following tax consequences are expected to arise in Japan for a holder that is a resident of Japan.

If a shareholder is an individual, dividends paid to the shareholder are taxable in Japan. As the dividends are

paid by a foreign corporation, deduction for dividend cannot be claimed. When Ordinary Shares are transferred to

third parties, shareholders will be taxed on the capital gains on transfer as they would be if they were investing in

shares of a Japanese corporation, but they will also be taxed on foreign exchange gains. By filing a tax return, such

shareholders may claim a foreign tax credit within certain credit limits for Dutch withholding tax.

If a shareholder is a corporation, and the Ordinary Shares held by the corporation are treated as "trading

securities," the valuation gain or loss at the end of the fiscal year is included in the amount of gain or loss for the

purpose of calculating the Japanese corporate income tax for the fiscal year. When Ordinary Shares are transferred

to third parties, Japanese corporate income tax will be imposed on gains on the transfer. The sale of Ordinary Shares

in the U.S. public market does not affect the "taxable sales ratio" for Japanese consumption tax purposes since the

transfer price is not taxable. If a share purchase agreement of Ordinary Shares is physically executed in Japan and

the agreement specifies the price to be paid, then stamp tax may be imposed.

**Material Dutch Tax Considerations of Acquiring, Owing or Disposing of Ordinary Shares**

***Taxation in the Netherlands***

This section outlines the principal Dutch tax consequences of the acquisition, holding, settlement, redemption

and disposal of the Ordinary Shares. It does not present a comprehensive or complete description of all aspects of

Dutch tax law which could be relevant to a holder of Ordinary Shares. For Dutch tax purposes, a holder of Ordinary

Shares may include an individual or entity not holding the legal title to the Ordinary Shares, but to whom, or to

which, the Ordinary Shares are, or the income from the Ordinary Shares is, nevertheless attributed based either on

this individual or entity owning a beneficial interest in the Ordinary Shares or on specific statutory provisions. These

include statutory provisions attributing Ordinary Shares to an individual who is, or who has directly or indirectly

inherited from a person who was, the settlor, grantor or similar originator of a trust, foundation or similar entity that

holds the Ordinary Shares.

This section is intended as general information only. Prospective holders of Ordinary Shares should consult

their own tax adviser regarding the tax consequences of any acquisition, holding or disposal of Ordinary Shares.

This section is based on Dutch tax law as applied and interpreted by Dutch tax courts and as published and in

effect on the date of this report, including the tax rates applicable on that date, without prejudice to any amendments

introduced at a later date and implemented with or without retroactive effect.

Any reference in this section made to Dutch taxes, Dutch tax or Dutch tax law should be construed as a

reference to any taxes of any nature levied by or on behalf of the Netherlands or any of its subdivisions or taxing

authorities or to the law governing such taxes, respectively. The Netherlands means the part of the Kingdom of the

Netherlands located in Europe.

Any reference made to a treaty for the avoidance of double taxation concluded by the Netherlands includes the

Tax Regulation for the Kingdom of the Netherlands (*Belastingregeling voor het Koninkrijk*), the Tax Regulation for

the State of the Netherlands (*Belastingregeling voor het land Nederland*), the Tax Regulations for the Netherlands

and Curaçao (*Belastingregeling Nederland Curaçao*), the Tax Regulations for the Netherlands and St. Maarten

(*Belastingregeling Nederland Sint Maarten*) and the Agreement between the Taipei Representative Office in the

Netherlands and the Netherlands Trade and Investment Office in Taipei for the avoidance of double taxation.

This section does not describe any Dutch tax considerations or consequences that may be relevant where a

holder of Ordinary Shares:

(i)&nbsp;&nbsp;&nbsp;&nbsp; is an individual and the income or capital gains derived by a holder of Ordinary Shares from the

Ordinary Shares are attributable to employment activities, the income from which is taxable in the

Netherlands;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;has a substantial interest (*aanmerkelijk belang*) or a fictitious substantial interest (*fictief aanmerkelijk* 

*belang*) in Coincheck Parent within the meaning of chapter 4 of the Dutch Income Tax Act 2001 (*Wet* 

*inkomstenbelasting 2001*) (the "ITA"). Generally, a holder of Ordinary Shares has a substantial interest

in Coincheck Parent if the holder of Ordinary Shares, alone or — in case of an individual — together

with a partner for Dutch tax purposes, or any relative by blood or by marriage in the ascending or

descending line (including foster-children) of the holder of Ordinary Shares or the partner, owns or

holds, or is deemed to own or hold shares or certain rights to shares, including rights to directly or

indirectly acquire shares, directly or indirectly representing 5% or more of Coincheck Parent's issued

capital as a whole or of any class of Ordinary Shares or profit participating certificates (*winstbewijzen*)

relating to 5% or more of Coincheck Parent's annual profits or 5% or more of Coincheck Parent's

liquidation proceeds;

(iii) is an entity that, although it is in principle subject to Dutch corporate income tax under the Dutch

Corporate Income Tax Act 1969 (*Wet op de vennootschapsbelasting 1969*) (the "CITA"), is not subject

to Dutch corporate income tax or is fully or partly exempt from Dutch corporate income tax (such as a

qualifying pension fund as described in Section 5 CITA and a tax exempt investment fund (*vrijgestelde* 

*beleggingsinstelling*) as described in Section 6a CITA), or is an entity that is not tax resident in the

Netherlands and that has a function comparable to a tax exempt investment fund (*vrijgestelde* 

*beleggingsinstelling*) as described in Section 6a CITA;

(iv) is an investment institution (*beleggingsinstelling*) as described in Section 28 CITA, or is an entity that is

not tax resident in the Netherlands and that has a function comparable to an investment institution

(*beleggingsinstelling*) as described in Section 28 CITA;

(v)&nbsp;&nbsp;&nbsp;&nbsp;is required to apply the participation exemption (*deelnemingsvrijstelling*) with respect to the Ordinary

Shares (as described in Section 13 CITA). Generally, a holder of Ordinary Shares is required to apply

the participation exemption if it is subject to Dutch corporate income tax and it, or a related entity, holds

an interest of 5% or more of the nominal paid-up share capital in Coincheck Parent;

(vi) is an entity in respect of which the dividend withholding tax exemption (*inhoudingsvrijstelling*) can or

must be applied with respect to any profits derived from the Ordinary Shares (pursuant to Section 4 or

Section 4a of the Dutch Dividend Withholding Tax Act 1965 (*Wet op de dividendbelasting 1965*) (the

"DWTA")).Pursuant to Section 4 DWTA, a dividend withholding tax exemption may apply if a holder

of Ordinary Shares holds an interest of 5% or more of the nominal paid-up share capital in Coincheck

Parent. Pursuant to Section 4a DWTA, a dividend withholding tax exemption may generally be applied

if a holder of Ordinary Shares (x) is an entity that is tax resident in the Netherlands that is not subject to

Dutch corporate income tax, or (y) is an entity which (a) is a resident in a member state of the European

Union ("EU"), or a state that is a party to the Agreement on the European Economic Area ("EEA";

Iceland, Liechtenstein or Norway) or, to the extent that it concerns shares that are held as a portfolio

investment, another state that has been designated by means of a ministerial decree as a state with which

the Netherlands can exchange information in line with the international standard on exchange of

information, (b) is not subject to a profit tax levied by that state and (c) would not have been subject to

Dutch corporate income tax had that entity been resident in the Netherlands, and such holder of Ordinary

Shares has obtained a formal decision from the Dutch tax authorities stating that these requirements are

met (kwalificatiebeschikking);

(vii) is an entity that is related (*gelieerd*) to Coincheck Parent within the meaning of the Withholding Tax

Act 2021 (*Wet bronbelasting 2021*). An entity is considered related if (i) it holds, directly or indirectly, a

Qualifying Interest in Coincheck Parent, (ii) Coincheck Parent, directly or indirectly, holds a Qualifying

Interest in the holder of Ordinary Shares, or (iii) a third party holds, directly or indirectly, a Qualifying

Interest in both Coincheck Parent and the holder of Ordinary Shares. An entity is also considered related

to Coincheck Parent if the entity is part of a qualifying unity (*kwalificerende eenheid*) of entities that

jointly directly or indirectly holds a Qualifying Interest in Coincheck Parent.The term Qualifying

Interest means a directly or indirectly held interest — either by an entity individually or jointly if an

entity is part of a Qualifying Unity — that enables such entity or such Qualifying Unity to exercise a

definite influence over another entities' decisions, such as Coincheck Parent or the holder of Ordinary

Shares as the case may be, and allows it to determine the other entities' activities. The term Qualifying

Unity means a cooperation between entities that has as the main purpose or one of the main purposes the

avoidance of Dutch withholding tax levied pursuant to the Withholding Tax Act 2021;

(viii) is an entity which is a resident of Aruba, Curaçao or Sint Maarten and fully or partly conducts a business

through a permanent establishment (*vaste inrichting*) or a permanent representative (*vaste* 

*vertegenwoordiger*) in Bonaire, Sint Eustatius or Saba to which the Ordinary Shares are attributable; and

(ix) is not considered the beneficial owner (*uiteindelijk gerechtigde*) of these Ordinary Shares or the benefits

derived from or realized in respect of these Ordinary Shares.

This section also does not describe any Dutch tax considerations or consequences arising from the Dutch

Minimum Tax Act 2024 (*Wet minimumbelasting 2024*; the Dutch implementation of Directive (EU) 2022/2523 of

14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-

scale domestic groups in the European Union). Generally, such Dutch tax considerations or consequences may arise

for a holder of Ordinary Shares that is part of a multinational enterprise group which has at least one Dutch resident

constituent entity (including permanent establishments situated in the Netherlands) or a large-scale domestic group,

both within the meaning of the Dutch Minimum Tax Act 2024, provided that such a group has an annual revenue of

at least €750,000,000 in its (consolidated) financial statements in at least two of the four reporting years immediately

preceding the relevant (reporting) year. If a holder of Ordinary Shares is part of such a multinational enterprise

group or a large-scale domestic group, any benefits derived or deemed to be derived from the Ordinary Shares,

including any capital gains realized on any transfer of the Ordinary Shares, may be subject to a (top-up) tax of up to

15% in the Netherlands.

***Withholding Tax***

Based on Dutch domestic law, Coincheck Parent is generally required to withhold Dutch dividend withholding

tax at a rate of 15% from dividends distributed by it pursuant to the DWTA. Generally, Coincheck Parent is

responsible for the withholding of such dividend withholding tax at source.

Dividends distributed by Coincheck Parent include, but are not limited to:

(i)&nbsp;&nbsp;&nbsp;&nbsp; distributions of profits in cash or in kind, whatever they be named or in whatever form;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;proceeds from the liquidation of Coincheck Parent or proceeds from the repurchase of Ordinary Shares

by Coincheck Parent, other than as a temporary portfolio investment (*tijdelijke belegging*), in excess of

the average paid-in capital recognized for the purposes of the DWTA;

(iii) the par value of the Ordinary Shares issued to a holder of Ordinary Shares or an increase in the par value

of the Ordinary Shares, to the extent that no related contribution, recognized for the purposes of the

DWTA, has been made or will be made; and

(iv) partial repayment of paid-in capital, that is,

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;not recognized for DWTA purposes, or

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;recognized for DWTA purposes, to the extent that Coincheck Parent has "net profits" (*zuivere* 

*winst*), unless (a) the general meeting of shareholders has resolved in advance to make this

repayment, and (b) the par value of the Ordinary Shares concerned has been reduced by an equal

amount by way of an amendment to the Articles of Association of Coincheck Parent. The term

"net profits" includes anticipated profits that have yet to be realized.

If a holder of Ordinary Shares is an individual that is resident or deemed to be resident in the Netherlands or is

an individual that is not resident or deemed to be resident in the Netherlands, but for whom dividends distributed by

Coincheck Parent or income deemed to be derived from the Ordinary Shares is subject to income tax under the ITA,

such holder of Ordinary Shares is generally entitled to a credit for any Dutch dividend withholding tax against his

Dutch tax liability and to a refund of any residual Dutch dividend withholding tax. Entities that are resident or

deemed to be resident in the Netherlands and entities that are not resident or deemed resident in the Netherlands, but

for which dividends distributed by Coincheck Parent are subject to corporate income tax under the CITA, can only

credit Dutch dividend withholding tax up to the total amount of their Dutch corporate income tax liability without

taking into account any credit for Dutch dividend withholding tax and gaming tax (*kansspelbelasting*). To the extent

the aggregate of the Dutch dividend withholding tax and gaming tax exceeds the aggregate Dutch corporate income

tax liability in respect of the relevant year, the excess is not refunded, but carried forward to future years subject to

certain restrictions and conditions.

Depending on specific circumstances, a holder of Ordinary Shares resident in a country other than the

Netherlands and for whom dividends distributed by Coincheck Parent or income deemed to be derived from the

Ordinary Shares is not subject to tax under the ITA or the CITA may be entitled to exemptions from, reduction of, or

full or partial refund of, Dutch dividend withholding tax under Dutch law, EU law, or treaties for the avoidance of

double taxation.

A holder of Ordinary Shares that is resident (i) in an EU member state, (ii) in a state that is a party to the

Agreement on the European Economic Area ("EEA;" Iceland, Liechtenstein or Norway), or (iii) in a designated

third state with which the Netherlands has agreed to an arrangement for the exchange of information on tax matters

and for whom dividends distributed by Coincheck Parent or income deemed to be derived from the Ordinary Shares

is not subject to tax under the ITA or the CITA, may be entitled to a full or partial refund of Dutch dividend

withholding tax incurred in respect of the Ordinary Shares if the final tax burden in respect of the dividends

distributed by Coincheck Parent of a comparable Dutch resident holder of Ordinary Shares is lower than the

withholding tax incurred by the non-Dutch resident holder of Ordinary Shares. The refund is granted upon request,

and is subject to conditions and limitations. No entitlement to a refund exists if the disadvantage for the non-

Dutch resident holder of Ordinary Shares is entirely compensated in his state of residence under the provisions of a

treaty for the avoidance of double taxation concluded between his state of residence and the Netherlands.

A holder of Ordinary Shares who is resident in the United States for purposes of the 1992 treaty for the

avoidance of double taxation between the United States and the Netherlands, as amended most recently by the

Protocol signed March 8, 2004 (the "US Treaty") and who is entitled to the benefits of the US Treaty, will be

entitled to an exemption from or a reduction of Dutch dividend withholding tax as follows:

(i)&nbsp;&nbsp;&nbsp;&nbsp; if the US holder of Ordinary Shares is an exempt pension trust as described in Article 35 of the US

Treaty or an exempt organization as described in Article 36 of the US Treaty, the US holder of Ordinary

Shares is entitled to an exemption from Dutch dividend withholding tax; and

(ii)&nbsp;&nbsp;&nbsp;&nbsp;if the US holder of Ordinary Shares is a company that directly holds at least 10%, but less than 80% of

the voting power in Coincheck Parent, the US holder of Ordinary Shares will be entitled to a reduction

of Dutch withholding tax to a rate of 5%.

A US holder of Ordinary Shares that qualifies for an exemption from, or a reduction of, Dutch dividend

withholding tax may generally claim (i) an exemption or reduction at source, or (ii) a refund, by making the requisite

filings within three years after the end of the calendar year in which the Dutch dividend withholding tax was levied.

A holder of Ordinary Shares who is resident in Japan for purposes of the treaty for the avoidance of double

taxation between Japan and the Netherlands, signed on August 25, 2010 (the "Japan Treaty") and who is entitled to

the benefits of the Japan Treaty, will be entitled to an exemption from or a reduction of Dutch dividend withholding

tax as follows:

(i)&nbsp;&nbsp;&nbsp;&nbsp; all Japanese holders of Ordinary Shares will be entitled to a reduction of Dutch dividend withholding tax

to a rate of 10%; and

(ii)&nbsp;&nbsp;&nbsp;&nbsp;if the Japanese holder of Ordinary Shares is a qualifying pension fund as described in Article 3,

paragraph 1, under (m), of the Japan Treaty, the Japanese holder of Ordinary Shares is entitled to an

exemption from Dutch dividend withholding tax, provided that such dividends are not derived from the

carrying on of a business, directly or indirectly, by such qualifying pension fund.

A Japanese holder of Ordinary Shares that qualifies for an exemption from, or a reduction of, Dutch dividend

withholding tax may generally claim (i) an exemption or reduction at source, or (ii) a refund, by making the requisite

filings within five years after the end of the calendar year in which the Dutch dividend withholding tax was levied.

According to Dutch domestic anti-dividend stripping rules, no credit against Dutch tax, exemption from,

reduction, or refund of Dutch dividend withholding tax will be granted if the recipient of the dividends paid by

Coincheck Parent is not considered to be the beneficial owner (*uiteindelijk gerechtigde*) of those dividends.

The DWTA provides for a non-exhaustive negative description of a beneficial owner. According to the

DWTA, a holder of Ordinary Shares will not be considered the beneficial owner of the dividends if as a consequence

of a combination of transactions:

(i)&nbsp;&nbsp;&nbsp;&nbsp; a person other than the holder of Ordinary Shares wholly or partly, directly or indirectly, benefits from

the dividends;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;whereby this other person retains or acquires, directly or indirectly, an interest similar to that in the

Ordinary Shares on which the dividends were paid; and

(iii) that other person is entitled to a credit, reduction or refund of Dutch dividend withholding tax that is less

than that of the holder of Ordinary Shares.

In general terms,the burden of proof with respect to beneficial ownership of dividends distributed by

Coincheck Parent for an exemption from or a reduction of Dutch dividend withholding tax rests with the holder of

Ordinary Shares. For a credit against Dutch taxes or a refund of Dutch dividend withholding taxes, the burden of

proof rests with the Dutch tax authorities unless the holder of Ordinary Shares would receive dividends, including

dividends on the Ordinary Shares, in a calendar or financial year in respect of which an aggregate amount of more

than EUR 1,000 in Dutch dividend withholding tax would be due based on the rate of 15%.

***Taxes on Income and Capital Gains***

*Residents of the Netherlands*

The description of certain Dutch tax consequences in this section is only intended for the following holder of

Ordinary Shares:

(i)&nbsp;&nbsp;&nbsp;&nbsp; individuals who are resident or deemed to be resident in the Netherlands ("Dutch Resident Individuals");

and

(ii)&nbsp;&nbsp;&nbsp;&nbsp;entities or enterprises that are subject to the CITA and are resident or deemed to be resident in the

Netherlands ("Dutch Resident Corporate Entities").

*Dutch Resident Individuals engaged or deemed to be engaged in an enterprise or in miscellaneous activities*

Dutch Resident Individuals engaged or deemed to be engaged in an enterprise or in miscellaneous activities

(*resultaat uit overige werkzaamheden*) are generally subject to income tax at statutory progressive rates with a

maximum of 49.50% on any benefits derived or deemed to be derived from the Ordinary Shares, including any

capital gains realized on any disposal of the Ordinary Shares, where those benefits are attributable to:

(i)&nbsp;&nbsp;&nbsp;&nbsp; an enterprise from which a Dutch Resident Individual derives profits, whether as an entrepreneur

(*ondernemer*) or by being co-entitled (*medegerechtigde*) to the net worth of this enterprise other than as

an entrepreneur or shareholder; or

(ii)&nbsp;&nbsp;&nbsp;&nbsp;miscellaneous activities, including activities which are beyond the scope of active portfolio investment

activities (*meer dan normaal vermogensbeheer*).

*Dutch Resident Individuals not engaged or deemed to be engaged in an enterprise or in miscellaneous activities*

Generally, Ordinary Shares held by a Dutch Resident Individual who is not engaged or deemed to be engaged

in an enterprise or in miscellaneous activities, or who is so engaged or deemed to be engaged but the Ordinary

Shares are not attributable to that enterprise or miscellaneous activities, will be subject to an annual income tax

imposed on a fictitious yield on the fair market value of the Ordinary Shares on 1 January of each calendar year

under the regime for savings and investments (*inkomen uit sparen en beleggen*). Irrespective of the actual income or

capital gains realized, the annual taxable benefit from a Dutch Resident Individual's assets and liabilities taxed under

this regime, including the Ordinary Shares, is based on fictitious percentages applied to the fair market value of

(i) bank savings, (ii) other assets, including the Ordinary Shares, and (iii) liabilities.

Taxation only occurs if and to the extent the sum of the fair market value of bank savings and other assets

minus the fair market value of the liabilities exceeds a certain threshold (*heffingvrij vermogen*). The tax rate under

the regime for savings and investments is a flat rate of 36%.

For the calendar year 2025, the definitive fictitious percentages applicable to the first and third categories

mentioned above (bank savings and liabilities) have not yet been determined. The definitive fictitious yield

percentage applicable to the second category mentioned above (other assets, including the Ordinary Shares)

is 5.88% for the calendar year 2025.

Transactions in the three months periods before and after 1 January will for this purpose be ignored unless the

holder of Ordinary Shares can demonstrate that such transactions are implemented for other reasons than arbitration

between fictitious yield percentages.

Based on decisions by the Dutch Supreme Court of 6 June 2024, taxation under the regime for savings and

investments in its current form, as described in the above paragraphs, may under specific circumstances be

incompatible with the European Convention on Human Rights. It is expected that the regime for taxation of savings

and investments as in effect on the date of this report will be amended to comply with the decisions of the Dutch

Supreme Court mentioned above. Holders of Ordinary Shares are advised to consult their own tax advisor to ensure

that tax is levied in accordance with the decisions of the Dutch Supreme Court.

*Dutch Resident Corporate Entities*

Dutch Resident Corporate Entities are generally subject to corporate income tax at statutory rates up to 25.8%

on any benefits derived or deemed to be derived from the Ordinary Shares, including any capital gains realized on

their disposal.

***Non-Residents of the Netherlands***

The description of certain Dutch tax consequences in this section is only intended for the following holders of

Ordinary Shares:

(i)&nbsp;&nbsp;&nbsp;&nbsp; individuals who are not resident and not deemed to be resident in the Netherlands ("Non-Dutch Resident

Individuals"); and

(ii)&nbsp;&nbsp;&nbsp;&nbsp;entities that are not resident and not deemed to be resident in the Netherlands ("Non-Dutch Resident

Corporate Entities").

*Non-Dutch Resident Individuals*

A Non-Dutch Resident Individual will not be subject to any Dutch taxes on income or capital gains derived

from the purchase, ownership and disposal or transfer of the Ordinary Shares, other than withholding tax as

described above, unless:

(i)&nbsp;&nbsp;&nbsp;&nbsp; the Non-Dutch Resident Individual derives profits from an enterprise, whether as entrepreneur or by

being co-entitled to the net worth of this enterprise other than as an entrepreneur or shareholder and this

enterprise is fully or partly carried on through a permanent establishment (*vaste inrichting*) or a

permanent representative (*vaste vertegenwoordiger*) in the Netherlands, to which the Ordinary Shares

are attributable;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Non-Dutch Resident Individual derives benefits from miscellaneous activities carried on in the

Netherlands in respect of the Ordinary Shares, including activities which are beyond the scope of active

portfolio investment activities; or

(iii) the Non-Dutch Resident Individual is entitled to a share — other than by way of securities — in the

profits of an enterprise, which is effectively managed in the Netherlands and to which the Ordinary

Shares are attributable.

*Non-Dutch Resident Corporate Entities*

A Non-Dutch Resident Corporate Entity will not be subject to any Dutch taxes on income or capital gains

derived from the purchase, ownership and disposal or transfer of the Ordinary Shares, other than withholding tax as

described above, unless:

(i)&nbsp;&nbsp;&nbsp;&nbsp; the Non-Dutch Resident Corporate Entity derives profits from an enterprise, which is fully or partly

carried on through a permanent establishment or a permanent representative in the Netherlands to which

the Ordinary Shares are attributable; or

(ii)&nbsp;&nbsp;&nbsp;&nbsp;the Non-Dutch Resident Corporate Entity is entitled to a share — other than by way of securities — in

the profits of an enterprise or a co-entitlement to the net worth of an enterprise, which is effectively

managed in the Netherlands and to which the Ordinary Shares are attributable.

Under certain specific circumstances, treaties for the avoidance of double taxation may restrict the extent to

which Non-Dutch Resident Individuals and Non-Dutch Resident Corporate are subject to Dutch taxes in connection

with the acquisition, holding, settlement, redemption, and transfer of the Ordinary Shares.

***Dutch Gift Tax or Inheritance Tax***

No Dutch gift tax or inheritance tax is due in respect of any gift of the Ordinary Shares by, or inheritance of

the Ordinary Shares on the death of, a holder of Ordinary Shares, unless:

(i)&nbsp;&nbsp;&nbsp;&nbsp; the holder of Ordinary Shares is resident, or is deemed to be resident, in the Netherlands at the time of

the gift or death of the holder of Ordinary Shares;

(ii)&nbsp;&nbsp;&nbsp;&nbsp;the holder of Ordinary Shares dies within 180 days after the date of the gift of the Ordinary Shares and

was, or was deemed to be, resident in the Netherlands at the time of the holder of Ordinary Shares' death

but not at the time of the gift; or

(iii) the gift of the Ordinary Shares is made under a condition precedent and the holder of Ordinary Shares is

resident, or is deemed to be resident, in the Netherlands at the time the condition is fulfilled.

***Other Taxes and Duties***

No other Dutch taxes, including taxes of a documentary nature, such as capital tax, stamp or registration tax or

duty, are payable by, or on behalf of, the holder of Ordinary Shares by reason only of the purchase, ownership and

disposal of the Ordinary Shares.

***Residency***

A holder of Ordinary Shares will not become a resident or deemed resident of the Netherlands solely as a

result of holding the Ordinary Shares.

**F.Dividends and Paying Agents**

Not applicable.

**G.Statement by Experts**

Not applicable.

**H.Documents on Display**

We are subject to the periodic reporting and other information requirements of the Exchange Act as applicable

to a foreign private issuer, and we will file annual reports and other information from time to time with the SEC in

accordance with such requirements. Our SEC filings will be available to the public on the internet at a website

maintained by the SEC located at *www.sec.gov*.

We use our website (https://www.coincheckgroup.com/) to distribute company information and make

available free of charge a variety of information for investors, including our filings with the SEC, as soon as

reasonably practicable after electronically filing that material with, or furnishing it to, the SEC. The information that

we post on our website may be deemed material. Accordingly, investors should monitor our website, in addition to

following our press releases, filings with the SEC, and public conference calls and webcasts. In addition, investors

may opt in to automatically receive email alerts and other information about Coincheck Parent when enrolling their

email address by visiting the "Email Alerts" section of our website. We do not incorporate the information contained

on, or accessible through, our website, Coincheck's (or any other subsidiary's) website, or related social media

channels into this report.

As a foreign private issuer, we are exempt under the Exchange Act from, among other things, the rules

prescribing the furnishing and content of proxy statements, and our officers, directors and principal shareholders are

exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act.

In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the

SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

**I.Subsidiary Information**

Not applicable.

**J.Annual Report to Security Holders**

We intend to submit and publish any annual report to shareholders as required by applicable Dutch law.

**Item 11. Quantitative and Qualitative Disclosure About Markets Risks**

Market risk is the risk to our consolidated financial statements associated with the effect of changes in

market factors, including risks associated with interest rates, foreign currency, derivatives and crypto assets. These

assets and liabilities are held for purposes other than trading.

**Interest Rate Risk**

Our exposure to changes in interest rates primarily relates to interest earned on our cash and cash

equivalents and customer custodial funds.

Our investment policy and strategy related to our cash and cash equivalents and customer custodial funds is

to preserve capital and meet liquidity requirements without increasing risk. These funds consist mainly of cash

deposits, and therefore the fair value of our cash and cash equivalents and customer custodial funds would not be

significantly affected by either an increase or a decrease in interest rates. Also, in Japan, interest rates are set by the

Bank of Japan's Policy Board in its Monetary Policy Meetings. The Bank of Japan's official interest rate is the

discount rate. The Bank of Japan kept its key short-term interest rate unchanged at 0.5% during its June meeting,

maintaining the highest level since 2008. (In the late 1990s, the Bank of Japan employed a zero interest rate policy

(ZIRP), and the official interest rate in Japan has not exceeded 0.5% since then, and at times has been negative.

More specifically, the official interest rate was 0.1% from 2014-2016, then -0.1% from 2016-2023, before gradually

rising to 0.25% and then 0.5%.)

**Foreign Currency Translation Risk**

The Company has exposure to changes in currency rates as a result of operations by subsidiaries in non-

Japanese jurisdictions. Revenue and income/loss generated by international operations will increase or decrease

compared to prior periods as a result of changes in foreign currency exchange rates. The operations impacted by

foreign currency risk are not significant relative to the operations of the Company and, as a result, our exposure to

foreign currency risk is not material. Currently, we do not hedge our foreign exchange exposure but may consider

doing so in the future.

**Market Risk of Crypto Assets**

Accordingly, crypto asset price risk could adversely affect our operating results. In particular, our future

profitability may depend upon the market price and overall price volatility of Bitcoin, Ethereum, and XRP, as well

as other crypto assets. Crypto asset prices, along with our operating results, have fluctuated significantly from

quarter to quarter. There is no assurance that crypto asset prices will reflect historical trends. A decline in the market

price of Bitcoin, Ethereum, XRP, and other crypto assets has in the past had and could in the future have an adverse

effect on our earnings and our future cash flows. This may also affect our liquidity and ability to meet ongoing

obligations.

In addition to the exposures described above, we hold crypto assets borrowed from customers (crypto assets

held) to facilitate customer transactions. As of March 31, 2025, we had 44,680 million yen of crypto assets held,

with a related crypto asset borrowings balance of 44,479 million yen. See Note 3. Summary of Material Accounting

Policies of the Notes to our consolidated financial statements included in this report for further information about

these different categories of assets and liabilities.

Our market risk exposure for our crypto assets held and crypto asset borrowings is limited due to their

short-term nature or offsetting positions. A hypothetical 10% increase or decrease in crypto asset prices applied to

the value of our crypto assets held and crypto asset borrowings as of March 31, 2025 and 2024 would not have had a

material impact on our consolidated financial statements.

**Market Risk of Derivatives**

We have exposure to derivatives measured and recorded at fair value. Market risk on derivatives is the

derivative product, the volume of transactions, the tenor and terms of the agreement, and the underlying volatility.

**Warrant Liabilities**

We have issued liability-classified warrants whose fair value is sensitive to changes in the underlying share

price and volatility. The fair value is measured at each reporting date with changes recognized in earnings. A

hypothetical 10% increase in the Ordinary Share price as of the reporting date would not have a material adverse

impact on our warrant liabilities.

**Item 12. Description of Securities other than Equity Securities**

**A.Debt Securities**

Not applicable.

**B.Warrants and Rights**

Upon the completion of the Business Combination, there were 4,730,537 Public Warrants outstanding. The

Public Warrants, which each entitle the holder to purchase one Ordinary Share at an exercise price of $11.50 per

share, became exercisable on April 8, 2025, the date that the issuance of the underlying Ordinary Shares was

registered on an effective registration statement of Coincheck Parent. The Public Warrants will terminate at

5:00 p.m., Eastern Time on the earlier to occur of: (i) the date that is five (5) years after the date on which the

Business Combination was completed, (ii) the liquidation of Coincheck Parent, or (iii) the redemption date as

provided in the warrant agreement dated June 29, 2021 by and between Thunder Bridge and Continental Stock

Transfer & Trust Company, as warrant agent (as amended).

Upon the completion of the Business Combination, there were also 129,611 Private Warrants held by the

Thunder Bridge Sponsor. The Private Warrants are identical to the Public Warrants in all material respects. The

Private Warrants may be exercised by the holders on a cashless basis and will not be redeemable (subject to certain

limited exceptions) as long as they are held by the Thunder Bridge Sponsor or its permitted transferees. If the Private

Warrants are held by someone other than the Thunder Bridge Sponsor or its permitted transferees, such warrants will

be redeemable and exercisable by such holders on the same basis as the Public Warrants.

***Redemption of Public Warrants when the price per Ordinary Share equals or exceeds $18.00***

Pursuant to the warrant agreement, with amendments thereto, if any, once the Public Warrants become

exercisable they may be redeemed (i) in whole and not in part, (ii) at a price of $0.01 per warrant, (iii) upon not less

than 30 days' prior written notice of redemption to each warrant holder, (iv) if, and only if, the last reported sale

price of Ordinary Shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends,

reorganizations, recapitalizations and the like) for any 20 trading days within a 30-day trading period ending three

days before sending the notice of redemption to each warrant holder, and (v) if, and only if, there is an effective

registration statement covering the shares issuable upon exercise of the warrants and a current prospectus relating

thereto is available throughout the 30-day period after the written notice of redemption is given. When the Public

Warrants become redeemable, Coincheck Parent will be able to exercise its redemption right even if it is unable to

register or qualify the underlying securities for sale under all applicable state securities laws.

***Redemption of Warrants when the Price per Ordinary Share Equals or Exceeds $10.00***

Once the Public Warrants become exercisable, they may be redeemed (i) in whole and not in part, (ii) at a

price of $0.10 per warrant upon a minimum of 30 days' prior written notice of redemption provided that warrant

holders will be able to exercise their warrants on a cashless basis prior to redemption and receive a specified number

of Ordinary Shares based on the redemption date and the "fair market value" of the Ordinary Shares, (iii) if, and

only if, the last reported sale price of Ordinary Shares equals or exceeds $10.00 per share (as adjusted for share

splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading

day period ending three days before sending the notice of redemption to each warrant holder, and (iv) if the last

reported sale price of the Ordinary Shares is less than $18.00 per share (as adjusted for share splits, share dividends,

reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three

days before sending the notice of redemption to each warrant holder, the Private Warrants must also be concurrently

called for redemption on the same terms as the outstanding Public Warrants.

For purposes of the foregoing, "fair market value" of the Ordinary Shares means the volume weighted average

price of Ordinary Shares during the 10 trading days immediately following the date on which the notice of

redemption is sent to the holders of warrants. Coincheck Parent will provide the warrant holders with the final fair

market value no later than one business day after the 10-trading day period described above ends.

**C.Other Securities**

Not applicable.

**D.American Depositary Shares**

Not applicable

**Part II.**

**Item 13. Defaults, Dividend Arrearages and Delinquencies**

None.

**Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds**

None.

**Item 15. Controls and Procedures**

**Disclosure Controls and Procedures**

We maintain disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e)

under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) that are designed to ensure that the

information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act, including

this report, is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and

forms and such information is accumulated and communicated to management, including the Chief Executive

Officer (principal executive officer) and the Chief Financial Officer (principal financial officer), as appropriate, to

allow timely decisions regarding required disclosure. Any controls and procedures, no matter how well designed and

operated, can provide only reasonable assurances of achieving the desired control objectives.

We carried out an evaluation, under the supervision and with the participation of our management,

including the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of the design and

operation of our disclosure controls and procedures as of March 31, 2025. Based upon that evaluation, our Chief

Executive Officer and Chief Financial Officer have concluded that, as of March 31, 2025, due solely to the material

weakness in internal control over financial reporting described below in "Changes in Internal Control over Financial

Reporting," our disclosure controls and procedures were not effective.

**Management's Report on Internal Control over Financial Reporting**

This report does not include a report of management's assessment regarding internal control over financial

reporting or an attestation report of the Company's registered public accounting firm due to a transition period

during which they are not required as established by rules of the SEC for newly public companies.

**Changes in Internal Control over Financial Reporting**

In connection with the preparation of our consolidated financial statements for the year ended March 31,

2023, we identified a material error related to the accounting for Marketplace transaction revenue recognition and

therefore restated our financial statements for the years ended March 31, 2021 and 2022. We had reconsidered

during our fiscal year ended March 31, 2023 our accounting policy for Marketplace platform transactions, and

reconsideration of the policy for revenue recognition was determined appropriate based upon the development of

interpretive guidance across the blockchain and digital asset industry, as well as information obtained from

conversations with our auditors, third-party consultants, and other relevant parties. Based on this reconsideration, we

determined that the use of the former accounting policy had resulted in a material misstatement of Coincheck's

marketplace transaction revenue and costs of sales for the years ended March 31, 2021 and 2022, which required our

restatement. We applied the corrected accounting policy for transaction revenue recognition in our audited financial

statements for the year ended March 31, 2023, and have continued to do so thereafter, including for this report.

Management has concluded that, even though the corrected accounting policy for transaction revenue recognition

has been applied beginning with our year-end financial statements for the year ended March 31, 2023, the material

weakness has not been completely remediated. Management's remediation program, which includes actively

monitoring and staying informed of the latest accounting practices related to crypto assets among SEC registrants,

has not been completed and operating for a sufficient period of time while we have been a publicly traded company

(i.e., since December 11, 2024), and therefore our internal control over financial reporting was not effective in this

regard as of March 31, 2025.

Except for the pending remediation described above, no changes in our internal control over financial

reporting (as such term is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) occurred during the period

covered by this report that materially affected, or are reasonably likely to materially affect, our internal control over

financial reporting.

**Item 16.**

**Item 16. AAudit Committee Financial Expert**

The Board has determined that Allerd Derk Stikker (the Committee Chair of the Audit Committee)

qualifies as an "audit committee financial expert" as such term is defined in the rules of the SEC. Our Board has

determined that each member of the Audit Committee, including the Committee Chair, is an independent director

under the applicable Nasdaq rules, Rule 10A-3 under the Exchange Act and the Dutch Corporate Governance Code.

**Item 16. BCode of Ethics**

We have adopted a Code of Business Conduct and Ethics that applies to our all directors, officers

(including our principal executive officer, principal financial officer, principal accounting officer or controller or

persons performing similar functions) and employees of our corporate group, and to anyone to whom we have made

the code applicable by contract or otherwise. Our Code of Business Conduct and Ethics is posted to our website

(https://www.coincheckgroup.com/corporate-governance) and is a "code of ethics" as defined in Item 16.B of Form

20-F. We will make any legally required disclosures regarding amendments to, or waivers of, provisions of our Code

of Business Conduct and Ethics on our website.

**Item 16. CPrincipal Accountant Fees and Services**

KPMG AZSA LLC, Tokyo, Japan (together with affiliates, including overseas affiliates, "KPMG") has

served as our independent registered public accounting firm for the years ended March 31, 2025 and 2024. We

incurred the following fees from KPMG for professional services for the years ended March 31, 2025 and 2024,

respectively:

---

| | | |
|:---|:---|:---|
| (*¥ millions*) | **For the fiscal years ended March** <br>**31,** | **For the fiscal years ended March** <br>**31,** |
| (*¥ millions*) | **2025** | **2024** |
| Audit fees........................................................................................ | 1348 | 204 |
| Audit-related fees.............................................................................. | 2 | 2 |
| Tax fees........................................................................................... | 1 | 0 |
| All other fees.................................................................................... | 0 | 0 |
| Total............................................................................................... | 1351 | 206 |

---

• Audit fees are the aggregate fees charged by KPMG for the audit of our annual consolidated financial

statements, the review of our interim consolidated financial statements and attestation services that are

provided in connection with statutory and regulatory filings or engagements.

• Audit-related fees are the aggregate fees charged by KPMG for assurance and related services that are

reasonably related to the performance of the audit or review of our financial statements and are not

reported under "Audit Fees." This category comprises fees for agreed upon procedures engagements

and other attestation services subject to regulatory requirements.

• Tax fees are the aggregate fees charged by KPMG for services related to tax compliance, tax advice

and tax planning.

• All other fees are the aggregate fees charged by KPMG for non-audit services rendered which are not

listed above.

***Pre-Approval Policies and Procedures***

The Audit Committee has adopted policies and procedures relating to the approval of all audit and non-

audit services that are to be performed by our independent registered public accounting firm. These policies

generally provide that we will not engage our independent registered public accounting firm to render audit or non-

audit services unless the service is specifically approved in advance by the Audit Committee or the engagement is

entered into pursuant to the pre-approval procedure described below.

From time to time, the Audit Committee may pre-approve specified types of services that are expected to

be provided to us by our independent registered public accounting firm during the next 12 months. Any such pre-

approval is detailed as to the particular service or type of services to be provided and is also generally subject to a

maximum dollar amount. For the fiscal year ended March 31, 2025, our Audit Committee approved all of the

services provided by KPMG. It is also noted that for the fiscal year ended March 31, 2025, our Audit Committee

was not created until December 2024, after the Business Combination closed.

**Item 16. DExemptions from the Listing Standards for Audit Committees**

None.

**Item 16. EPurchases of Equity Securities by the Issuer and Affiliated Purchasers**

None.

**Item 16. FChange In Registrant's Certifying Accountant**

Not Applicable.

**Item 16. GCorporate Governance**

Please see "*Item 10.B: Memorandum and Articles of Association*" for a description of the material terms of

our Articles of Association and certain applicable related Dutch law.

**We are a Private Foreign Issuer and a Controlled Company**

We are a "foreign private issuer" (as such term is defined in Rule 3b-4 under the Exchange Act), and our

Ordinary Shares are listed on Nasdaq. Under the Nasdaq rules, foreign private issuers are permitted to follow home

country practice in lieu of the corporate governance provisions specified by Nasdaq, with limited exceptions, and we

are exempt from certain provisions of the Exchange Act that are applicable to U.S. domestic public companies.

Under Rule 405 of the Securities Act, the determination of foreign private issuer status is made annually on the last

business day of an issuer's most recently completed second fiscal quarter, so our next determination will be made

based on our relevant facts as of September 30, 2025. We do not expect our foreign private issuer status to change

when we make such determination as of that date.

We are also a "controlled company" within the meaning of the Nasdaq corporate governance standards

because Monex holds a majority of the voting power of our Ordinary Shares eligible to vote in the election of our

directors. Under the Nasdaq corporate governance standards, a company of which more than 50% of the voting

power is held by an individual, group or another company is a "controlled company."

***Implications of Being a Foreign Private Issuer***

The discussion below summarizes the significant differences between our corporate governance practices

and the Nasdaq listing standards applicable to U.S. companies. The DCGC is based on a "comply or explain"

principle, and as set below, we also discuss certain ways in which our governance practices deviate from those

suggested in the DCGC.

Under the Nasdaq rules, U.S. domestic listed companies are required to have a majority independent board,

which is not required under the Dutch Corporate Governance Code of the Netherlands, our home country. In

addition, the Nasdaq rules require U.S. domestic listed companies to have an independent compensation committee

and that our director nominations be made, or recommended to our full board of directors, by our independent

directors or by a nominations committee that is comprised entirely of independent directors, which are not required

under our home country laws. Currently, we have a majority independent board and all of our board committees

consist solely of independent directors, but, other than always maintaining an audit committee with only

independent directors, that could change in the future.

Further, for as long as we qualify as a foreign private issuer, we will be exempt from certain provisions of

the Exchange Act that are applicable to U.S. domestic public companies, including:

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the sections of the Exchange Act regulating the solicitation of proxies, consents or authorizations in

respect of a security registered under the Exchange Act;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the sections of the Exchange Act requiring insiders to file public reports of their stock ownership and

trading activities and imposing liability for insiders who profit from trades made within a short period of

time;

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the rules under the Exchange Act requiring the filing with the SEC of an annual report on Form 10-K

(although we will file annual reports on a corresponding form, i.e., this annual report on Form 20-F, for

foreign private issuers), quarterly reports on Form 10-Q containing unaudited financial and other

specified information (although we have furnished, and intend to furnish, quarterly financial results

reports, typically in the form of an earnings press release, on a current reporting form for foreign private

issuers), or current reports on Form 8-K, upon the occurrence of specified significant events; and

• &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Regulation Fair Disclosure or Regulation FD, which regulates selective disclosure of material non-public

information by issuers.

Accordingly, there may be less publicly available information concerning our business than there would be

if we were a U.S. public company.

Also, in lieu of Nasdaq's quorum requirement of at least 33 1/3 percent of outstanding shares for general

(i.e., shareholder) meetings, we follow home country practice, which has no quorum requirements, and our Articles

of Association do not require a quorum at general meetings, meaning resolutions may be adopted at Coincheck

Parent's general meetings irrespective of the issued share capital issued or represented. Additionally, to the extent we

rely on Dutch law with respect to issuance of shares, our practice varies from the requirements of the corporate

governance standards of Nasdaq, which generally require an issuer to obtain shareholder approval for the issuance of

securities in connection with such events.

Thus, due to our status as a foreign private issuer and our intent to follow certain home country corporate

governance practices, our shareholders do not have the same protections afforded to shareholders of companies that

are subject to all of the Nasdaq corporate governance standards.

***Implications of Being a Controlled Company***

As a "controlled company," we may elect not to comply with certain corporate governance standards,

including the requirements that (1) a majority of our Board consist of independent directors, (2) our Board have a

compensation committee that is comprised entirely of independent directors with a written charter addressing the

committee's purpose and responsibilities, and (3) our Board have a nominating and corporate governance committee

that is comprised entirely of independent directors with a written charter addressing the committee's purpose and

responsibilities. Although we are not currently relying on these exemptions, if we do rely on them in the future our

shareholders will not have the same protections afforded to shareholders of companies that are subject to all of the

Nasdaq corporate governance standards. In the event that we do rely on them in the future and we cease to be a

"controlled company" and our Ordinary Shares continue to be listed on Nasdaq, we will be required to comply with

these corporate governance standards within the applicable transition periods or may rely on an alternate exemption,

including those available to a foreign private issuer.

For more information on our corporate governance practices, please refer to *Item 6, "Directors, Senior* 

*Management, and Employees*."

**Item 16. HMine Safety Disclosure**

Not applicable.

**Item 16. IDisclosure Regarding Foreign Jurisdictions that Prevent Inspections**

Not applicable.

**Item 16. JInsider Trading Policies**

We have adopted a Securities Trading Policy (the "Insider Trading Policy"), which, among other things,

governs the purchase, sale and other dispositions of our securities by our directors, senior management and

employees. Our Insider Trading Policy aims to promote compliance with applicable insider trading laws, rules and

regulations and the Nasdaq listing standards. A copy of our Insider Trading Policy is filed as Exhibit 11.1 to this

report.

**Item 16. KCybersecurity**

**Risk Management and Strategy** 

We have developed and implemented cybersecurity risk management processes intended to protect the

confidentiality, integrity, and availability of our critical systems and information. While everyone at our company

plays a part in managing cybersecurity risks, primary cybersecurity oversight responsibility is shared by our board of

directors, the Risk Committee, and senior management. Our cybersecurity risk management program is a part of our

overall enterprise risk management program.

Our cybersecurity risk management program includes:

• physical, technological, and administrative controls intended to support our cybersecurity and data

governance framework, including protections designed to protect the confidentiality, integrity, and

availability of our key information systems and customer, employee, partner, and other third-party

information stored on those systems, such as access controls, encryption, data handling requirements,

and other cybersecurity safeguards, and internal policies that govern our cybersecurity risk

management and data protection practices;

• a defined procedure for timely incident detection, containment, response, and remediation, including a

written security incident response plan that includes procedures for responding to cybersecurity

incidents;

• cybersecurity risk assessment processes designed to help identify material cybersecurity risks to our

critical systems, information, products, services, and broader enterprise IT environment;

• a security team responsible for managing our cybersecurity risk assessment processes and security

controls;

• the use of external consultants or other third-party experts and service providers, where considered

appropriate, to assess, test, or otherwise assist with aspects of our cybersecurity controls;

• annual cybersecurity and privacy training of employees, including incident response personnel and

senior management, and specialized training for certain teams depending on their role and/or access to

certain types of information, such as consumer information; and

• a third-party risk management process that includes internal vetting of certain third-party vendors and

service providers with whom we may share data.

Over the past fiscal year, while we have had two cybersecurity incidents, we have not identified risks from

known cybersecurity threats (including as a result of those two cybersecurity incidents) which have materially

affected or are reasonably likely to materially affect us, including our operations, business strategy, operating

results, or financial condition. 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. We will continue to monitor and assess our cybersecurity risk management program

as well as invest in and seek to improve such systems and processes as appropriate. If we were to experience a

material cybersecurity incident in the future, such incident may have a material effect, including on our operations,

business strategy, operating results, or financial condition. For more information regarding cybersecurity risks that

we face and their potential impacts on our business related, see the section titled "Risk Factors" in Part I, Item 3.D,

of this report.

**Governance**

With oversight from our Board, the Risk Committee and Audit Committee have collective primary

responsibility to assist the Board fulfill its ultimate oversight responsibilities relating to risk assessment and

management, including relating to cybersecurity and other information technology risks.The Risk Committee

oversees our enterprise risk management as a whole, with its primary focus being system and operational risk,

information and cybersecurity risk, reputational risk, and business continuity risk, while the risks relating to

financial matters, such as financial reporting and internal controls, liquidity, credit and market risk, and legal and

compliance, are the priorities of the Audit Committee with respect to its oversight role for enterprise risk

management. The Committee Chair of the Risk Committee has an ongoing dialogue with the Committee Chair of

the Audit Committee to coordinate these priorities and allocations regarding each committee's responsibilities. The

Risk Committee oversees management's implementation of our cybersecurity risk management program, including

processes and policies for determining risk tolerance, and reviews management's strategies for adequately mitigating

and managing identified risks, including risks relating to cybersecurity threats.The Risk Committee currently meets

monthly, and reports to our Board regarding its activities, including those related to key cybersecurity risks, on a

quarterly basis or more frequently as needed.The cybersecurity experience of the Committee Chair of the Risk

Committee includes having served (i) in a variety of positions at PricewaterhouseCoopers LLP (PwC) in the United

States from 1998 to 2018, including Principal and Global Cyber Security Leader and Principal and U.S. and Global

Advisory Cyber Leader, and (ii) as Principal and Americas Cyber Leader at Ernst & Young LLP from April 2018 to

February 2024, and he currently serves, since March 2024, as Global Group Head, Cyber and Data Resilience, at

Kroll, LLC.

Coincheck, as our principal operating subsidiary, has its own comprehensive risk management structure,

including for cybersecurity, and its own risk committee, chaired by Coincheck's Chairman, as well as a dedicated

chief risk officer (sometimes also referred to internally as chief risk management officer) who is in charge of day-to-

day oversight of risk management, including cybersecurity and information technology risk, and who reports to

Coincheck's risk committee chair. In addition to his experience since 2017 at various Monex companies and

Coincheck, which has included acting as a corporate auditor, executive officer and director, and day-to-day

oversight of risk management, with a focus on technology, this chief risk officer has experience and degrees in both

law and trading, including as a trading manager at Goldman Sachs and Deutsche Bank, which included

responsibility for implementation of regulations of the Bank of International Settlements. Coincheck Parent also has

a dedicated employee who focuses on controls and risks related to cybersecurity and information technology,

including attendance and participation in relevant meetings and discussions. Her experience includes conducting

assessments regarding general information technology (IT) and automated controls under JICPA and PCAOB

standards, implementing computer-assisted audit techniques (CAATs) for risk assessment, sampling and fraud

detection, and vendor security assessments for six years at Deloitte Touche Tohmatsu LLC in Japan, and over six

years of similar experience at Deloitte Touche LLP in New York, including leading a nine-person team conducting

IT control assessment under PCAOB regarding 300 automated controls in a complex IT environment with over 200

application systems, and supervising an eight-person team to deliver internal audit support services for general IT

and automated controls. The Risk Committee receives updates from members of management, including the chair of

Coincheck's risk committee, on our cybersecurity risks on a monthly basis, and management updates, as necessary,

regarding any material cybersecurity threats or incidents, as well as any incidents with lesser impact potential.

Our management team is responsible for assessing and managing our material risks from cybersecurity

threats and for our overall cybersecurity risk management program on a day-to-day basis, and supervises both our

internal cybersecurity personnel and the relationship with our retained external cybersecurity consultants, including

our efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various means. Our

management team includes individuals with years of working experience in the cybersecurity field.

**Part III.**

**Item 17. Financial Statements**

We have provided consolidated financial statements pursuant to Item 18.

**Item 18. Financial Statements**

The audited Consolidated Financial Statements as required under Item 18 are attached hereto starting on

page F-1 of this report, which is attached as Exhibit 99.1 hereto.

**Item 19. Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 1.1 | <u>[Unofficial Translation of Deed of Conversion and Amendment of the Articles of Association of](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex1-1_coincheck.htm)</u><br><u>[Coincheck Group B.V. (after conversion and amendment named, Coincheck Group N.V.)](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex1-1_coincheck.htm)</u><br><u>[(incorporated by reference to Exhibit 1.1 of Form 20-F filed by the Registrant with the SEC on](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex1-1_coincheck.htm)</u><br><u>[December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex1-1_coincheck.htm)</u><br>|
| 2.1 | <u>[Description of Securities Registered under Section 12 of the Securities Exchange Act of 1934.](ex21_cnckdescriptionofsecu.htm)</u> |
| 2.2 | <u>[Warrant Agreement, dated June 29, 2021, between Thunder Bridge Capital Partners IV, Inc. and](https://www.sec.gov/Archives/edgar/data/1843993/000121390021035624/ea143591ex4-1_thunder4.htm)</u><br><u>[Continental Stock Transfer & Trust Company (including form of warrant certificates as Annex A](https://www.sec.gov/Archives/edgar/data/1843993/000121390021035624/ea143591ex4-1_thunder4.htm)</u><br><u>[thereto) (incorporated by reference to Exhibit 4.1 of Form 8-K, filed by Thunder Bridge with the](https://www.sec.gov/Archives/edgar/data/1843993/000121390021035624/ea143591ex4-1_thunder4.htm)</u><br><u>[SEC on July 2, 2021).](https://www.sec.gov/Archives/edgar/data/1843993/000121390021035624/ea143591ex4-1_thunder4.htm)</u><br>|
| 2.3 | <u>[Warrant Assumption and Amendment Agreement, dated December 10, 2024, by and among Thunder](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex2-3_coincheck.htm)</u><br><u>[Bridge Capital Partners IV, Inc., Coincheck Group N.V. and Continental Stock Transfer & Trust](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex2-3_coincheck.htm)</u><br><u>[Company (incorporated by reference to Exhibit 2.3 of Form 20-F filed by the Registrant with the](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex2-3_coincheck.htm)</u><br><u>[SEC on December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex2-3_coincheck.htm)</u><br>|
| 4.1 | <u>[Business Combination Agreement, dated as of March 22, 2022, by and among Thunder Bridge](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex2-1_thunder4.htm)</u><br><u>[Capital Partners IV, Inc., Coincheck Group B.V., M1 Co G.K., Coincheck Merger Sub, Inc., and](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex2-1_thunder4.htm)</u><br><u>[Coincheck, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K filed by Thunder Bridge with](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex2-1_thunder4.htm)</u><br><u>[the SEC on March 22, 2022).](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex2-1_thunder4.htm)</u><br>|
| 4.2 | <u>[Amendment to Business Combination Agreement, dated as of May 31, 2023, by and among Thunder](https://www.sec.gov/Archives/edgar/data/1843993/000121390023044204/ea179521ex2-1_thunder4.htm)</u><br><u>[Bridge Capital Partners IV, Inc., Coincheck Group B.V., M1 Co G.K., Coincheck Merger Sub, Inc.,](https://www.sec.gov/Archives/edgar/data/1843993/000121390023044204/ea179521ex2-1_thunder4.htm)</u><br><u>[and Coincheck, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K filed by Thunder Bridge](https://www.sec.gov/Archives/edgar/data/1843993/000121390023044204/ea179521ex2-1_thunder4.htm)</u><br><u>[with the SEC on May 31, 2023).](https://www.sec.gov/Archives/edgar/data/1843993/000121390023044204/ea179521ex2-1_thunder4.htm)</u><br>|
| 4.3 | <u>[Second Amendment to Business Combination Agreement, dated as of May 28, 2024, by and among](https://www.sec.gov/Archives/edgar/data/1843993/000121390024047990/ea020703001ex2-1_thunder4.htm)</u><br><u>[Thunder Bridge Capital Partners IV, Inc., Coincheck Group B.V., M1 Co G.K., Coincheck Merger](https://www.sec.gov/Archives/edgar/data/1843993/000121390024047990/ea020703001ex2-1_thunder4.htm)</u><br><u>[Sub, Inc., and Coincheck, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K filed by](https://www.sec.gov/Archives/edgar/data/1843993/000121390024047990/ea020703001ex2-1_thunder4.htm)</u><br><u>[Thunder Bridge with the SEC on May 30, 2024).](https://www.sec.gov/Archives/edgar/data/1843993/000121390024047990/ea020703001ex2-1_thunder4.htm)</u><br>|
| 4.4 | <u>[Third Amendment to Business Combination Agreement, dated as of October 8, 2024, by and among](https://www.sec.gov/Archives/edgar/data/1843993/000121390024087069/ea021727701ex2-1_thunder4.htm)</u><br><u>[Thunder Bridge Capital Partners IV, Inc., Coincheck Group B.V., M1 Co G.K., Coincheck Merger](https://www.sec.gov/Archives/edgar/data/1843993/000121390024087069/ea021727701ex2-1_thunder4.htm)</u><br><u>[Sub, Inc., and Coincheck, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K filed by](https://www.sec.gov/Archives/edgar/data/1843993/000121390024087069/ea021727701ex2-1_thunder4.htm)</u><br><u>[Thunder Bridge with the SEC on October 11, 2024).](https://www.sec.gov/Archives/edgar/data/1843993/000121390024087069/ea021727701ex2-1_thunder4.htm)</u><br>|
| 4.5 | <u>[Business Combination Waiver, dated as of December 6, 2024, by and among Thunder Bridge](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex2-1_thunder4.htm)</u><br><u>[Capital Partners IV, Inc, Coincheck Group B.V., M1 Co G.K., Coincheck Merger Sub, Inc. and](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex2-1_thunder4.htm)</u><br><u>[Coincheck, Inc. (incorporated by reference to Exhibit 2.1 of Form 8-K, filed by Thunder Bridge](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex2-1_thunder4.htm)</u><br><u>[Capital Partners IV, Inc. with the SEC on December 6, 2024).](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex2-1_thunder4.htm)</u><br>|
| 4.6 | <u>[Form of Indemnity Agreement (incorporated by reference to Exhibit 10.7 of Form S-1/A, filed by](https://www.sec.gov/Archives/edgar/data/1843993/000121390021033333/fs12021a1ex10-7_thunder4.htm)</u><br><u>[Thunder Bridge with the SEC on June 21, 2021).](https://www.sec.gov/Archives/edgar/data/1843993/000121390021033333/fs12021a1ex10-7_thunder4.htm)</u><br>|
| 4.7 | <u>[Sponsor Support Agreement by and among Thunder Bridge, TBCP IV, LLC, Gary A. Simanson, as](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-1_thunder4.htm)</u><br><u>[manager of TBCP IV, LLC and PubCo, dated March 22, 2022 (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-1_thunder4.htm)</u><br><u>[Exhibit 10.1 of Form 8-K filed by Thunder Bridge with the SEC on March 22, 2022).](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-1_thunder4.htm)</u><br>|
| 4.8 | <u>[Company Support Agreement by and among Thunder Bridge, Monex Group, Inc., PubCo and the](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-2_thunder4.htm)</u><br><u>[other parties thereto, dated March 22, 2022 (incorporated by reference to Exhibit 10.2 of Form 8-K](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-2_thunder4.htm)</u><br><u>[filed by Thunder Bridge with the SEC on March 22, 2022).](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-2_thunder4.htm)</u><br>|
| 4.9 | <u>[Amendment to Company Support Agreement by and among Thunder Bridge Capital Partners IV,](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex10-2_thunder4.htm)</u><br><u>[Inc., Monex Group, Inc., Coincheck Group N.V. and the other parties thereto, dated as of](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex10-2_thunder4.htm)</u><br><u>[December 6, 2024 (incorporated by reference to Exhibit 10.2 of Form 8-K, filed by Thunder Bridge](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex10-2_thunder4.htm)</u><br><u>[Capital Partners IV, Inc. with the SEC on December 6, 2024).](https://www.sec.gov/Archives/edgar/data/1843993/000121390024106492/ea022389401ex10-2_thunder4.htm)</u><br>|
| 4.10 | <u>[Form of Lock-Up Agreement, dated March 22, 2022, by and among PubCo, Coincheck, Inc. and the](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-3_thunder4.htm)</u><br><u>[individuals named therein (incorporated by reference to Exhibit 10.3 of Form 8-K filed by Thunder](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-3_thunder4.htm)</u><br><u>[Bridge with the SEC on March 22, 2022).](https://www.sec.gov/Archives/edgar/data/1843993/000121390022014005/ea157219ex10-3_thunder4.htm)</u><br>|

---

---

| | |
|:---|:---|
| 4.11 | <u>[Form of Amendment to Lock-Up Agreement, dated as of October 8, 2024, by and among Coincheck](https://www.sec.gov/Archives/edgar/data/1913847/000121390024096915/ea0200032-12.htm#T1010)</u><br><u>[Group B.V., Coincheck, Inc., and the individuals named therein (incorporated by reference to](https://www.sec.gov/Archives/edgar/data/1913847/000121390024096915/ea0200032-12.htm#T1010)</u><br><u>[Annex G-1 of the proxy statement/prospectus filed by Coincheck Group B.V. with the SEC on](https://www.sec.gov/Archives/edgar/data/1913847/000121390024096915/ea0200032-12.htm#T1010)</u><br><u>[November 12, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024096915/ea0200032-12.htm#T1010)</u><br>|
| 4.12 | <u>[Registration Rights Agreement, dated as of December 10, 2024, by and among Coincheck Group](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-14_coincheck.htm)</u><br><u>[N.V., Thunder Bridge Capital Partners IV, Inc., Monex Group, Inc., and the persons named therein](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-14_coincheck.htm)</u><br><u>[(incorporated by reference to Exhibit 4.14 of Form 20-F filed by the Registrant with the SEC on](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-14_coincheck.htm)</u><br><u>[December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-14_coincheck.htm)</u><br>|
| 4.13+ | <u>[Coincheck Group N.V. Omnibus Incentive Plan (incorporated by reference to Exhibit 4.15 of](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-15_coincheck.htm)</u><br><u>[Form 20-F filed by the Registrant with the SEC on December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-15_coincheck.htm)</u><br>|
| 4.14+ | <u>[Form of Director Indemnification Agreement, by and between Coincheck Group N.V. and the](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-16_coincheck.htm)</u><br><u>[individual named therein (incorporated by reference to Exhibit 4.16 of Form 20-F filed by the](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-16_coincheck.htm)</u><br><u>[Registrant with the SEC on December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-16_coincheck.htm)</u><br>|
| 4.15+ | <u>[Form of Executive Director Agreement, by and between Coincheck Group N.V. and the individual](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-17_coincheck.htm)</u><br><u>[named therein (incorporated by reference to Exhibit 4.17 of Form 20-F filed by the Registrant with](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-17_coincheck.htm)</u><br><u>[the SEC on December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-17_coincheck.htm)</u><br>|
| 4.16+ | <u>[Form of Non-Executive Director Agreement, by and between Coincheck Group N.V. and the](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-18_coincheck.htm)</u><br><u>[individual named therein (incorporated by reference to Exhibit 4.18 of Form 20-F filed by the](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-18_coincheck.htm)</u><br><u>[Registrant with the SEC on December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-18_coincheck.htm)</u><br>|
| 4.17+ | <u>[Remuneration Policy for the Board of Directors of Coincheck Group N.V., dated December 10, 2024](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-19_coincheck.htm)</u><br><u>[(incorporated by reference to Exhibit 4.19 of Form 20-F filed by the Registrant with the SEC on](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-19_coincheck.htm)</u><br><u>[December 16, 2024).](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-19_coincheck.htm)</u><br>|
| 4.18 | <u>[Amended & Restated Non-Redemption and Share Forward Agreement, dated as of March 10, 2025,](https://www.sec.gov/Archives/edgar/data/1913847/000121390025022287/ea023378001ex10-1_coincheck.htm)</u><br><u>[by and between Coincheck Group N.V., CCG Administrative Services, Inc., and Ghisallo Master](https://www.sec.gov/Archives/edgar/data/1913847/000121390025022287/ea023378001ex10-1_coincheck.htm)</u><br><u>[Fund LP. (incorporated by reference to Exhibit 10.1 of Form 6-K, filed by the Registrant with the](https://www.sec.gov/Archives/edgar/data/1913847/000121390025022287/ea023378001ex10-1_coincheck.htm)</u><br><u>[SEC on March 10, 2025).](https://www.sec.gov/Archives/edgar/data/1913847/000121390025022287/ea023378001ex10-1_coincheck.htm)</u><br>|
| 4.19 | <u>[Nomination and Voting Agreement, dated as of December 10, 2024, by and among Monex Group,](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-21_coincheck.htm)</u><br><u>[Inc., TBCP IV, LLC and Coincheck Group N.V. (incorporated by reference to Exhibit 4.21 of](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-21_coincheck.htm)</u><br><u>[Form 20-F filed by the Registrant with the SEC on December 10, 2024)](https://www.sec.gov/Archives/edgar/data/1913847/000121390024109398/ea022484001ex4-21_coincheck.htm)</u>.<br>|
| 8.1 | <u>[List of Subsidiaries of Coincheck Group N.V.](ex81_listofsubsidiariesofc.htm)</u> |
| 11.1 | <u>[Coincheck Group N.V. Securities Trading Policy](ex111coincheckgroupnvsecur.htm)</u> |
| 12.1 | <u>[Principal Executive Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex121_principalexecutiveof.htm)</u> |
| 12.2 | <u>[Principal Financial Officer Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.](ex122_principalfinancialof.htm)</u> |
| 13.1 | <u>[Principal Executive Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex131_principalexecutiveof.htm)</u> |
| 13.2 | <u>[Principal Financial Officer Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.](ex132_principalfinancialof.htm)</u> |
| 15.1 | <u>[Consent of KPMG AZSA LLC.](consentofkpmgazsallc.htm)</u> |
| 97.1 | <u>[Coincheck Group N.V. Incentive Compensation Clawback Policy.](ex971coincheckgroupnvincen.htm)</u> |
| 99.1 | <u>[Consolidated Financial Statements.](cnck-20250331_d2.htm)</u> |
| 101 | Inline XBRL Document Set for the consolidated financial statements and accompanying notes in <br>Part III, Item 18, Financial Statements of this report.<br>|
| 104 | Inline XBRL for the cover page of this report, included in the Exhibit 101 Inline XBRL Document <br>Set.<br>|

---

+Indicates a management or compensatory plan.

The agreements and other documents filed as exhibits to this report are not intended to provide factual

information or other disclosure other than with respect to the terms of the agreements or other documents

themselves, and shareholders should not rely on them for that purpose. In particular, any representations and

warranties made by us in these agreements or other documents were made solely within the specific context of the

relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at

any other time.

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has

duly caused and authorized the undersigned to sign this annual report on its behalf.

July 30, 2025

COINCHECK GROUP N.V.

By:<u>/s/ Gary A. Simanson</u>

Name: Gary A. Simanson

Title: Executive Director, Chief Executive Officer and

President

## Exhibit 2.1

**Exhibit 2.1**

**DESCRIPTION OF SECURITIES<br>REGISTERED UNDER SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934**

Coincheck Group N.V. ("Coincheck Parent") has the following securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"):

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Ordinary Shares, nominal value €0.01 per share ("Ordinary Shares") | CNCK | The Nasdaq Stock Market LLC |
| Warrants, each exercisable to purchase one ordinary share at an exercise price of $11.50 per share ("Public Warrants") | CNCKW | The Nasdaq Stock Market LLC |

---

The following is a summary of material terms of the Ordinary Shares and Public Warrants, and as applicable to the terms of such securities, pursuant to the requirements for an annual report on Form 20-F, a summary of material terms of Dutch law and the following documents, each of which is filed as an exhibit to the Annual Report on Form 20-F to which this exhibit relates:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Coincheck Parent's Articles of Association;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Warrant Agreement, dated June 29, 2021, between Thunder Bridge Capital Partners IV, Inc. and Continental Stock Transfer & Trust Company, as modified by the Warrant Assumption and Amendment Agreement, dated December 10, 2024, by and among Thunder Bridge Capital Partners IV, Inc., Coincheck Group N.V. and Continental Stock Transfer & Trust Company (as updated, the "Warrant Agreement");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sponsor Support Agreement, by and among Thunder Bridge, TBCP IV, LLC, Gary A. Simanson, as manager of TBCP IV, LLC and Coincheck Group B.V., dated March 22, 2022;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Company Support Agreement, by and among Thunder Bridge Capital Partners IV, Inc., Monex Group, Inc., Coincheck Group B.V., and the other parties thereto, dated March 22, 2022, as modified by Amendment to Company Support Agreement, by and among Thunder Bridge Capital Partners IV, Inc., Monex Group, Inc., Coincheck Group N.V. and the other parties thereto, dated as of December 6, 2024 (as amended, the "Company Support Agreement");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Form of Lock-Up Agreement, dated March 22, 2022, by and among Coincheck Group B.V., Coincheck, Inc. and the individuals named therein, as amended by Form of Amendment to Lock-Up Agreement, dated as of October 8, 2024, by and among Coincheck Group B.V., Coincheck, Inc., and the individuals named therein (as amended, "Lock-up Agreement"); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nomination and Voting Agreement, dated as of December 10, 2024, by and among Monex Group, Inc., TBCP IV, LLC and Coincheck Group N.V. ("Nomination and Voting Agreement").

The following description is intended as a summary only and does not constitute legal advice regarding those matters and should not be regarded as such. The description is qualified in its entirety by reference to the full text of the foregoing documents and we urge you to read those documents carefully, along with applicable provisions of Dutch law, including the Dutch Corporate Governance Code ("DCGC") and the Dutch Civil Code ("DCC").

**Coincheck Parent Overview**

Coincheck Group B.V. was incorporated on February 18, 2022, as a private limited liability company (besloten vennootschap met beperkte aansprakelijkheid) governed by Dutch law and, on December 10, 2024,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

changed its legal form to a Dutch public limited liability company (naamloze vennootschap) governed by Dutch law and was renamed Coincheck Group N.V. Coincheck Parent has its corporate seat in Amsterdam, the Netherlands, and its registered office is at Nieuwezijds Voorburgwal 162, 1012 SJ Amsterdam. Coincheck Parent is registered in the Trade Register of the Chamber of Commerce (Kamer van Koophandel) in the Netherlands under number 85546283.

On December 10, 2024 (the "Closing"), Coincheck Parent became a publicly traded company on the Nasdaq Global Market, upon consummation of its business combination transaction (the "Business Combination") with Thunder Bridge Capital Partners IV, Inc. ("Thunder Bridge"), pursuant to the business combination agreement, dated as of March 22, 2022, as amended, by and among Thunder Bridge, Coincheck Parent, M1 GK, Coincheck Merger Sub, Inc., and Coincheck. Inc. (the "Business Combination Agreement").

**<u>Ordinary Shares</u>**

*Authorized Share Capital*

Under Dutch law, the authorized share capital of a public limited liability company is the maximum capital that the company may issue without amending the Articles of Association. At least one fifth of the authorized share capital must at all times be issued. Pursuant to the Articles of Association, Coincheck Parent's authorized share capital amounts to €4,000,000, divided into 400,000,000 ordinary shares with a nominal value of €0.01 each.

*Issued Share Capital*

The issued share capital as of the end of the most recent fiscal period is as set forth in the Annual Report on Form 20-F to which this exhibit relates.

*Form of Ordinary Shares*

All Ordinary Shares are held in registered form. No share certificates are issued.

*Issuance of Shares*

The Articles of Association provide that Ordinary Shares may be issued and rights to subscribe for such shares may be granted pursuant to a resolution adopted by (i) Coincheck Parent's general meeting at the proposal of the board of directors (the "Board"), or (ii) if so authorized by Coincheck Parent's general meeting, by the Board. For as long as, and to the extent that the authorization referred to under (ii) is effective, Coincheck Parent's general meeting will not have the power to resolve to issue Ordinary Shares or grant rights to subscribe for such shares. Pursuant to Dutch law, the authorization referred to under (ii) may be granted, and subsequently extended, in each case for a period not exceeding five years. The authorization cannot be withdrawn, unless determined otherwise at the time of the authorization. The resolution to authorize the Board as corporate body authorized to issue Ordinary Shares and grant rights to subscribe for shares must state the maximum number of shares that may be issued under the authorization.

No general meeting resolution or resolution of the Board is required for the issuance of shares pursuant to the exercise of previously granted rights to subscribe for shares.

*Preemptive Rights*

Pursuant to Dutch law and the Articles of Association, each shareholder has a preemptive right in proportion to the aggregate amount of its Ordinary Shares upon the issuance of new Ordinary Shares or the grant of rights to subscribe for such shares, except in cases where Ordinary Shares are issued or rights thereto are granted: (i) to employees of Coincheck Parent, (ii) against payment other than in cash, or (iii) to persons exercising a previously granted right to subscribe for Ordinary Shares.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Pursuant to the Articles of Association, the preemptive rights in respect of newly issued Ordinary Shares or rights to subscribe for such shares, may be restricted or excluded by a resolution of the Board if and insofar as it has been designated as corporate body authorized for that purpose by Coincheck Parent's general meeting. The Board may only be designated in accordance with the preceding sentence to the extent that it is also designated as corporate body authorized to resolve upon the issuance of Ordinary Shares and grant of rights to subscribe for such shares. The designation may be granted, and subsequently extended, in each case for a period not exceeding five years, and cannot be withdrawn, unless determined otherwise at the time of designation. If the Board is not designated as described above, Coincheck Parent's general meeting may resolve to limit or exclude the preemptive rights in respect of issuances of Ordinary Shares and grant rights to subscribe for shares, but only at the proposal of the Board.

*Purchase and Repurchase of Ordinary Shares*

Pursuant to Dutch law, neither Coincheck Parent nor its subsidiaries may subscribe for Ordinary Shares to be issued. Coincheck Parent and its subsidiaries may acquire (repurchase) Ordinary Shares, subject to the applicable provisions and restrictions of Dutch law and the Articles of Association, to the extent that: (i) the Ordinary Shares are fully paid-up, (ii) if the Ordinary Shares are repurchased for valuable consideration, such repurchase would not cause Coincheck Parent's shareholders' equity (eigen vermogen) to fall below an amount equal to the sum of the paid-up and called-up part of the issued share capital and the reserves that Coincheck Parent must maintain pursuant to Dutch law and the Articles of Association, and (iii) immediately after the acquisition of such Ordinary Shares, Coincheck Parent, together with its subsidiaries, would not hold, as shareholders or pledgees, shares having an aggregate nominal value that exceeds 50% of Coincheck Parent's issued share capital. In addition, neither Coincheck Parent nor its subsidiaries may hold more than one-tenth of its issued share capital for more than three years after it was converted into a public limited liability company (naamloze vennootschap) or after it acquired its own shares (i) for no consideration or (ii) under universal succession of title (algemene titel).

Coincheck Parent may only acquire Ordinary Shares if Coincheck Parent's general meeting has authorized the Board to do so. Such an authorization may be granted for a maximum period of 18 months and must specify the number of Ordinary Shares that may be acquired, the manner in which they may be acquired and the relevant price range. No authorization is required for the acquisition of Ordinary Shares for no valuable consideration or under universal succession of title, or if the Ordinary Shares are acquired by Coincheck Parent with the intention of transferring them to Coincheck Parent's employees or employees within Coincheck Parent pursuant to an applicable arrangement.

In line with market practice for Dutch listed companies, the Board has been irrevocably authorized, for a period of 18 months following the Closing Date, to have Coincheck Parent acquire fully paid-up Ordinary Shares up to the maximum number of 10% of Coincheck Parent's issued share capital in the aggregate.

Coincheck Parent cannot derive any right to any distribution or any voting rights from any repurchased Ordinary Shares. Coincheck Parent's subsidiaries that have acquired Ordinary Shares will not be entitled to exercise their voting rights or to receive any dividends on such shares.

*Capital Reduction*

Coincheck Parent's general meeting may resolve to reduce Coincheck Parent's issued share capital by (i) cancelling Ordinary Shares, or (ii) reducing the nominal value of the Ordinary Shares through an amendment of the Articles of Association (provided that the nominal value of an Ordinary Share cannot be less than EUR 0.01 under Dutch law). In either case, the reduction would be subject to applicable statutory provisions, including the observance of a two-month creditor opposition period.

A resolution to cancel Ordinary Shares may only relate to Ordinary Shares held by Coincheck Parent itself or in respect of which Coincheck Parent holds the depositary receipts. A resolution to reduce Coincheck Parent's issued share capital requires a majority of at least two/thirds of the votes cast at Coincheck Parent's general meeting

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

if less than half of the issued share capital is represented at the meeting concerned. If half of the issued share capital or more is represented at the general meeting, the resolution may be adopted with a simple majority of votes cast.

*Transfer of Shares*

Pursuant to Dutch law and the Articles of Association, the Ordinary Shares are freely transferable. Under Dutch law and the Articles of Association, the transfer of Ordinary Shares (other than in book-entry form) or the creation of a right in rem on such shares will require a written deed for that purpose and, unless Coincheck Parent is a party to the deed, written acknowledgement by or proper service upon Coincheck Parent to be effective.

Pursuant to the Articles of Association, for as long as one or more Ordinary Shares are listed and admitted to trading on a regulated foreign stock exchange, the Board may resolve, in accordance with applicable Dutch law, that the laws of the State of New York, United States of America, rather than Dutch law shall apply to the property law aspects of the Ordinary Shares included in the part of the shareholders' register kept outside the Netherlands by the relevant transfer agent appointed by the Board for that purpose.

Notwithstanding the foregoing, Coincheck Parent has entered into lock-up agreements with certain shareholders that restrict transfer of Ordinary Shares, as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In connection with the Business Combination Agreement, pursuant to the Company Support Agreement and Lock-up Agreement, as applicable, equityholders of Coincheck, Inc. (each an "Equityholder") agreed to lock-up provisions, pursuant to which, among other things, each Equityholder agreed to not to transfer their respective Ordinary Shares, excluding any shares acquired in the public market or pursuant to a transaction exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"), where the issuance of Ordinary Shares occurs on or after the Closing, following the Closing (subject to certain exceptions), except as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ An aggregate of one-third of the Equityholder's lock-up shares will be automatically released from the lock-up (allocated pro rata) if the closing price of the lock-up shares is greater than or equal to $15.00 for any 20 trading days within any 30 consecutive trading day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ An aggregate of one-third of the Equityholder's lock-up shares will be automatically released from the lock-up (allocated pro rata) if the last sale price of the lock-up shares is greater than or equal to $17.50 for any 20 trading days within any 30 consecutive trading day period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The remainder, being an aggregate of one-third of the Equityholder's lock-up shares will be automatically released from the lock-up (allocated pro rata) if the last sale price of the lock-up shares is greater than or equal to $20.00 for any 20 trading days within any 30 consecutive trading day period.

The foregoing agreements will terminate upon the earlier to occur of (A) 8:00 am Eastern Time on December 10, 2025 and (B) the third early lock-up expiration time.

Additionally, contemporaneously with the execution of the Business Combination Agreement, pursuant to the Sponsor Support Agreement, TBCP IV, LLC, Thunder Bridge's sponsor (the "Sponsor") agreed to, among other items, substantially similar lock-up restrictions as set forth above, subject to certain exceptions as set forth in the Sponsor Support Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pursuant to the Sale and Purchase Agreement, dated March 12, 2025, as amended, in connection with Coincheck Parent's acquisition of all of the issued and outstanding shares of Next Finance Tech Co., Ltd. from its holders, subject to certain customary exceptions, certain of the holders of Next Finance Tech Co., Ltd. may not transfer their Ordinary Shares until December 31, 2026, provided, however, an aggregate of 70% of such shares will be released from such transfer restrictions at five predetermined intervals between May 14, 2025 and July 1, 2026.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*Discriminating Provisions*

There are no provisions in the Articles of Association that discriminate against a shareholder because of its ownership of a certain number of Ordinary Shares. There are no particular limitations on the rights to own Ordinary Shares, including the rights of non-resident or foreign shareholders to hold or exercise voting rights imposed by foreign law or governing document.

**Distributions**

Coincheck Parent may only make distributions (whether interim or annual) on the Ordinary Shares if its equity exceeds the sum of its paid-up and called-up capital and the reserves it must maintain pursuant to Dutch law and the Articles of Association. Coincheck Parent does not anticipate making any distributions on Ordinary Shares in the foreseeable future.

*Distribution of Dividends*

Pursuant to Dutch law and the Articles of Association, the distribution of dividends may only take place after the adoption of Coincheck Parent's annual accounts which show that the distribution is permitted. The Board may resolve to reserve all or part of Coincheck Parent's profits. Any profits remaining after the reservation referred to in the previous sentence shall be at the disposal of the general meeting. Coincheck Parent's general meeting may resolve to distribute the remaining profits to Coincheck Parent's shareholders. Coincheck Parent's general meeting, at the proposal of the Board, may resolve that part of the distribution is made in kind, including in the form of Ordinary Shares, or in a currency other than the Euro.

*Interim Distributions*

Subject to the provisions of Dutch law and the Articles of Association, the Board, or Coincheck Parent's general meeting at the proposal of the Board, may resolve upon interim distributions on the Ordinary Shares to be charged to Coincheck Parent's freely distributable reserves. For this purpose, the Board must prepare an interim statement of assets and liabilities, reflecting that (i) the capital requirements set out above are met, and (ii) Coincheck Parent has sufficient funds available for distribution. Interim distribution may be made in cash or in kind, including in the form of Ordinary Shares.

**General Meetings**

*Location*

Coincheck Parent general meetings are held in Amsterdam, Haarlemmermeer (which includes Schiphol Airport), The Hague or Rotterdam, the Netherlands. In deviation from the foregoing and to the extent permitted by law, the Board may decide that a general meeting is only accessible by electronic means in accordance with the applicable legal provisions.

*Annual General Meeting*

Coincheck Parent must hold at least one general meeting per year. This annual general meeting must be held within six months after the end of Coincheck Parent's fiscal year.

*Other General Meetings*

In addition to the annual general meeting, a general meeting must also be held within three months after the Board has determined it to be likely that Coincheck Parent's equity has decreased to an amount equal to or lower than half of its paid-up and called-up capital, in order to discuss the measures to be taken if so required. If the Board fails to hold such general meeting in a timely manner, each shareholder or other person entitled to attend the general meeting may be authorized by the Dutch court to convene a general meeting.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Additional general meetings are also held whenever required under Dutch law or considered appropriate by the Board. Pursuant to Dutch law and the Articles of Association, one or more shareholders solely or jointly representing at least 10% of the issued share capital of Coincheck Parent may request the Board to convene a general meeting. If the Board does not take the steps necessary to ensure that the requested general meeting is to be held within six weeks after the request, the requesting shareholder(s) may, at their request, be authorized by the Dutch court to convene a general meeting, subject to the fulfillment of certain requirements.

*Convocation*

Coincheck Parent's general meetings shall be convened by a notice, which includes the location, day and time of the meeting as well as an agenda stating the items to be discussed, which in case of the annual general meeting must include the adoption of Coincheck Parent's annual accounts, the appropriation of profits and losses and proposals relating to the Board, including the appointment and reappointment of directors and filling of any vacancies. In addition, the agenda for a general meeting must contain such items as the Board or the person(s) convening the meeting determine.

Pursuant to Dutch law and the Articles of Association, one or more shareholders solely or jointly representing at least 3% of the issued share capital of Coincheck Parent have the right to request the inclusion of additional items on the agenda of a general meeting. Such requests must be made in writing, substantiated and received no later than the 60<sup>th</sup> before the day of the relevant general meeting. No resolutions shall be adopted on items other than those that have been included in the agenda. Under the Articles of Association, certain agenda items can only be put on the agenda as a voting item by the Board. However, shareholders that meet the relevant requirements set out above may still request the inclusion of such items on the agenda as a discussion item.

*Notice*

Coincheck Parent will give notice of each general meeting by publication on its website and, to the extent required by applicable law, in a Dutch daily nationally distributed newspaper, and in any other manner that may be required to follow in order to comply with Dutch law and applicable Nasdaq and SEC requirements. The Articles of Association and Dutch law provide that general meetings of Coincheck Parent will be convened by the Board, no later than on the 15<sup>th</sup> day prior to the day of the meeting.

*Record Date*

Pursuant to Dutch law and the Articles of Association, the Board may determine a record date (registratiedatum) of 28 calendar days prior to the day of the general meeting to establish which shareholders and persons with meeting rights are entitled to attend and, if applicable, vote at the general meeting. The record date, if any, and the manner in which shareholders can register and exercise their rights will be set out in the notice of the general meeting. The Articles of Association provide that a shareholder must notify Coincheck Parent in writing of his or her identity and his or her intention to attend (or be represented at) the general meeting, such notice to be received by Coincheck Parent on the date set by the Board in accordance with the Articles of Association and as set forth in the convening notice.

**Shareholder Decision-Making**

*Voting Rights*

Pursuant to the Articles of Association, each Ordinary Share confers the right to cast one vote at the general meeting. The voting rights attached to any Ordinary Shares held by Coincheck Parent or its direct or indirect subsidiaries are suspended. Nonetheless, the holders of a right of usufruct or a pledge on Ordinary Shares in favor of a party other than Coincheck Parent or a direct or indirect subsidiary are not excluded from the right to vote such shares if the right of usufruct or right of pledge was created prior to the time the shares concerned were acquired by Coincheck Parent or any of its subsidiaries. Coincheck Parent may not exercise voting rights for Ordinary Shares in respect of which it or any of its subsidiaries has a right of usufruct or pledge. The holder of a usufruct or pledge on

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

shares shall have the voting rights attached thereto if so provided for when the usufruct or pledge was created. Ordinary Shares which are not entitled to be voted on pursuant to the foregoing will not be taken into account for the purpose of determining the number of shares on which votes may be cast or the amount of share capital that is present or represented at a general meeting.

Under the Articles of Association, blank votes (votes where no choice has been made), abstentions and invalid votes shall not be counted as votes cast. However, shares in respect of which a blank vote or invalid vote has been cast, and shares in respect of which the person with meeting rights who is present or represented at the meeting has abstained from voting, are counted when determining the part of the issued share capital that is present or represented at a general meeting.

*Majority Requirements*

Unless Dutch law or Coincheck Parent provide otherwise, all resolutions adopted at a general meeting will be adopted by a simple majority of votes cast. In the event of a tied vote, the proposal concerned will be rejected.

*Quorum Requirements*

The Articles of Association do not provide for quorum requirements generally applicable to general meetings of Coincheck Parent. Resolutions of the general meeting of Coincheck Parent may be adopted irrespective of the issued share capital present or represented at such general meeting, unless Dutch law or the Articles of Association stipulate otherwise.

*Major Transactions*

Pursuant to Dutch law and the Articles of Association, resolutions of the Board concerning a material change in Coincheck Parent's identity, character or business are subject to the approval of the general meeting. Aforementioned changes include: (i) a transfer of all or virtually all of Coincheck Parent's business to a third party, (ii) the entry into or termination of a long-term cooperation of Coincheck Parent or of a subsidiary with another entity or company, or as a fully liable partner of a limited partnership or partnership, if this cooperation or termination thereof is of significant importance to Coincheck Parent, and (iii) the acquisition or disposal of an interest in the capital of a company by Coincheck Parent or by a subsidiary with a value of at least one/third of the value of Coincheck Parent's assets, according to the balance sheet with explanatory notes or, if Coincheck Parent prepares a consolidated balance sheet, according to the consolidated balance sheet with explanatory notes as reflected in Coincheck Parent's most recently adopted annual accounts.

*Amendment of Articles of Association, Legal Merger and Demerger*

The general meeting may only resolve upon (i) an amendment of the Articles of Association, and (ii) a legal merger or legal demerger to which Coincheck Parent is a party, at the proposal of the Board. A resolution to amend the Articles of Association or to effect a legal merger or legal demerger requires a simple majority of the votes cast in the general meeting.

*Dissolution and Liquidation*

The general meeting may only resolve upon the dissolution of Coincheck Parent at the proposal of the Board. A resolution to dissolve Coincheck Parent requires a simple majority of the votes cast in the general meeting. If Coincheck Parent is dissolved, its liquidation will be carried out by the Board, unless the general meeting decides otherwise at the proposal of the Board.

If Coincheck Parent is dissolved and its assets are liquidated, any assets remaining after all Coincheck Parent's debts have been settled will be for the benefit of Coincheck Parent's shareholders in proportion to the aggregate nominal value of the Ordinary Shares held by each of them.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**Board of Directors**

*Board Structure and Composition*

Pursuant to the Articles of Association, Coincheck Parent has a one-tier board comprised of one or more executive directors and one or more non-executive directors. Subject to the approval of the general meeting, the Board will determine the number of executive and non-executive directors serving on the Board, provided that the majority will consist of Non-Executive Directors.

*Independence*

At least three directors on the Board shall qualify as independent under the listing rules of Nasdaq, and the majority of the Non-Executive Directors shall qualify as independent within the meaning of the DCGC.

*Nomination and Appointment*

Pursuant to the Articles of Association, the directors will be appointed by Coincheck Parent's general meeting upon a non-binding (non-exclusive) nomination by the Board. In accordance with Dutch law, Executive Directors may not participate in the Board's deliberations and decision-making process regarding such nomination. A resolution to appoint a director will require a majority of votes cast at the general meeting.

Supplementary to the nomination provisions in the Articles of Association, pursuant to the Nomination and Voting Agreement, (i) until the second anniversary of the Closing Date, the Sponsor shall have a right to nominate two directors, each a Sponsor Nominee, to the Board without such nomination right being subject to a minimum holding requirement or any other terms and conditions, and (ii) from the second anniversary until the third anniversary of the Closing Date, for as long as the "Sponsor Group" satisfies the minimum holding requirement of 50% of initial holdings, the Sponsor shall have a right to nominate one Sponsor Nominee, to the Board. The Board will nominate the Sponsor Nominees for appointment by Coincheck Parent's general meeting in accordance with the preceding paragraph. Monex Group, Inc. will agree to vote its shares in favor of the appointment of a Sponsor Nominee. The Sponsor's right to nominate Sponsor Nominees shall terminate with immediate effect as of the third anniversary of the consummation of the Business Combination. In addition, if and when the "Sponsor Group," during the period from the second anniversary until the third anniversary of the Closing Date, no longer satisfies the minimum holding requirement, the Sponsor's nomination right shall lapse as well.

*Term of Appointment*

Unless resolved otherwise by Coincheck Parent's general meeting at the proposal of the Board, directors will be subject to annual re-election and will be appointed for a term ending at the close of the first annual general meeting of Coincheck Parent held following their appointment.

*Suspension and Dismissal*

Coincheck Parent's general meeting may at all times suspend or dismiss a director of Coincheck Parent. Pursuant to the Articles of Association, a resolution to suspend or dismiss a director will require a majority of the votes cast in a general meeting. The Board may at all times resolve to suspend an Executive Director.

*Vacancies and Inability to Act*

Pursuant to the Articles of Association, in case of any vacancy on the Board or the inability to act of a director, a temporary director may be designated by the Board. The temporary replacement will hold office until the earlier of (i) his death, disability, retirement, resignation, disqualification or dismissal from the Board, (ii) the end of the next annual general meeting (or such general meeting convened earlier to fill the vacancy) and (iii) such time as the vacancy, or inability of the director, in respect of which he or she was designated as temporary replacement is resolved.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

*Liability of Directors*

Pursuant to Dutch law, each member of the Board may be held jointly and severally liable to Coincheck Parent for damages in the event of improper or negligent performance of his or her duties. Furthermore, directors may be held liable to third parties based on tort pursuant to certain provisions of the DCC. All members of the Board will be jointly and severally liable for failure of one or more co-directors. An individual director will only be exempt from liability if he or she proves that he or she cannot be held culpable for the mismanagement and that he or she has not been negligent in seeking to prevent the consequences of the mismanagement. In this regard, a member of the Board may, however, refer to the allocation of tasks among the directors.

*Conflict of Interest*

A member of the Board will not participate in the Board's deliberations and decision-making process if such director has a direct or indirect personal conflict of interest with Coincheck Parent and its associated business enterprise. If the Board is unable to adopt a resolution as a result of all directors being unable to participate in the deliberations and decision-making process due to a conflict of interest, the resolution may nevertheless by adopted by the Board.

**Certain Anti-Takeover Provisions of Dutch Law**

*No Arrangement of Protective Measures in the Articles of Association*

Under Dutch law, various protective measures for a Dutch company against takeovers are possible and permissible within the boundaries set by Dutch statutory law and Dutch case law. It is not anticipated that Coincheck Parent will adopt any protective measures.

*Response Times Based on the Dutch Corporate Governance Code and Dutch Civil Code* 

In accordance with the DCGC, a shareholder may only request the inclusion of an item on the agenda after consulting the Board in that respect. If one or more shareholders intend to request that an item be put on the agenda for a general meeting that may result in a change in Coincheck Parent's strategy, pursuant to the DCGC the Board may invoke a response time of a maximum of 180 days until the day of the general meeting.

Furthermore, under Dutch law, a statutory response time of 250 days applies. If the shareholder(s') request entails a proposal for a change to the composition of the Board or of corresponding provisions in the Articles of Association, the Board may invoke a 250-day response time. During this time, the general meeting cannot vote on the requested proposals; the proposals may however be discussed during the general meeting at the request of the relevant shareholder(s). The Board must use the 250-day response time to collect the information it needs in order to come to a prudent decision regarding the shareholder(s') request(s). The Board must prepare a report on the policy and course of action pursued, and this report must be placed on Coincheck Parent's website. The report must also (as a discussion item) be placed on the agenda of the first general meeting held after the response time has ended.

**Limitation on Liability and Indemnification of Directors and Officers**

The general meeting of Coincheck Parent may resolve to annually discharge the directors, to release them from any loss, damage or right to compensate arising out of or in connection with the exercise of their duties and which appear from the annual report and annual accounts of Coincheck Parent or as otherwise disclosed to the general meeting.

The Articles of Association also include a provision on indemnification. Pursuant to the Articles of Association and unless Dutch law provides otherwise, Coincheck Parent is required to indemnify any and all of the directors, officers, former directors, former officers and any person who may have served at its request as a director or officer of a subsidiary of Coincheck Parent, who were or are made a party or are threatened to be made a party or are involved in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal,

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

administrative, arbitrative or investigative, or any appeal in that regard or any inquiry or investigation that could lead to such an action, suit or proceeding (a "Proceeding"), against any and all liabilities, damages, documented expenses (including attorney's fees), financial effects of judgments, fines, penalties (including excise and similar taxes and punitive damages) and amounts paid in settlement in connection with such Proceeding by any of them.

Notwithstanding Coincheck Parent's obligation to indemnify and hold harmless as referred to above, no indemnification will be made (i) in respect of any claim, issue or matter as to which any of the above-mentioned indemnified persons will be adjudged in a final and non-appealable decision to be liable for gross negligence or willful misconduct in the performance of such person's duty to Coincheck Parent or (ii) to the extent that the costs or the capital losses of the above-mentioned indemnified persons are paid by another party or are covered by an insurance policy and the insurer has paid out these costs or capital losses.

The indemnification described above will not be exclusive of any other rights to which those indemnified may be entitled.

Pursuant to the Articles of Association, the indemnification described above may be further implemented in indemnification agreements or otherwise.

Coincheck Parent also maintains an insurance policy which insures directors and officers against certain liabilities which might be incurred in connection with the performance of their duties.

The description of indemnity herein is merely a summary of the provisions in the Articles of Association described above, and such description shall not limit or alter the mentioned provisions in the Articles of Association or other indemnification agreements entered into.

**<u>Public Warrants</u>**

Upon the completion of the Business Combination, there were 4,730,537 Public Warrants outstanding and the current outstanding number of Public Warrants as of the end of the most recent fiscal period is as set forth in the Annual Report on Form 20-F to which this exhibit relates. The Public Warrants, which each entitle the holder to purchase one Ordinary Share at an exercise price of $11.50 per share, became exercisable on April 8, 2025, the date that the issuance of the underlying Ordinary Shares was registered on an effective registration statement of Coincheck Parent. The Public Warrants will terminate at 5:00 p.m., Eastern Time on the earlier to occur of: (i) the date that is five (5) years after Closing, (ii) the liquidation of Coincheck Parent, or (iii) the redemption date as provided in the Warrant Agreement.

Upon the completion of the Business Combination, there were also 129,611 private warrants held by the Sponsor (the "Private Warrants"). The Private Warrants may be exercised by the holders on a cashless basis and will not be redeemable (subject to certain limited exceptions), so long as they are held by the Sponsor or permitted transferees. If the Private Warrants are held by someone other than the Sponsor or its permitted transferees, such warrants will be redeemable and exercisable by such holders on the same basis as the Public Warrants. The Private Warrants are identical to the Public Warrants in all material respects.

*General*

Coincheck Parent is not be obligated to deliver any Ordinary Shares pursuant to the exercise of a Public Warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the Ordinary Shares underlying the Public Warrants is then effective and a prospectus relating thereto is current, however, as set forth in the Warrant Agreement, in certain limited circumstances, cashless exercise will be permitted.

*Adjustments.* 

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

The Public Warrants are subject to certain adjustments, as set forth in the Warrant Agreement, including in the case of the events described below.

If the number of outstanding Ordinary Shares is increased by a share dividend payable in Ordinary Shares, or by a split-up of Ordinary Shares of or other similar event, then, on the effective date of such dividend, split-up or similar event, the number of Ordinary Shares issuable on exercise of each Public Warrant will be increased in proportion to such increase in the number of outstanding Ordinary Shares.

If the number of outstanding Ordinary Shares is decreased by a consolidation, combination, reverse stock split or reclassification of Ordinary Shares or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Ordinary Shares issuable on exercise of each Public Warrant will be decreased in proportion to such decrease in outstanding Ordinary Shares

Whenever the number of Ordinary Shares purchasable upon the exercise of the Public Warrants is adjusted, as described above, the exercise price will be adjusted by multiplying the exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of Ordinary Shares purchasable upon the exercise of the Public Warrants immediately prior to such adjustment, and (y) the denominator of which will be the number of Ordinary Shares so purchasable immediately thereafter.

With respect to any reclassification or reorganization of the outstanding Ordinary Shares (other than those described above), or in the case of any merger or consolidation of Coincheck Parent with or into another corporation (other than a consolidation or merger in which Coincheck Parent is the continuing entity and that does not result in any reclassification or reorganization of the outstanding Ordinary Shares), or in the case of any sale or conveyance to another corporation or entity of Coincheck Parent's assets or other property as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the Public Warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Public Warrants and in lieu of the Ordinary Shares immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had exercised their Public Warrants immediately prior to such event.

*Redemption of Public Warrants when the price per Ordinary Share equals or exceeds $18.00*

Pursuant to the Warrant Agreement, with any amendments thereto, if any, once the Public Warrants become exercisable, they may be redeemed (i) in whole and not in part, (ii) at a price of $0.01 per warrant, (iii) upon not less than 30 days' prior written notice of redemption to each warrant holder, (iv) if, and only if, the last reported sale price of Ordinary Shares equals or exceeds $18.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-day trading period ending three days before sending the notice of redemption to each warrant holder, and (v) if, and only if, there is an effective registration statement covering the shares issuable upon exercise of the warrants and a current prospectus relating thereto is available throughout the 30-day period after the written notice of redemption is given.

When the Public Warrants become redeemable, Coincheck Parent will be able to exercise its redemption right even if it is unable to register or qualify the underlying securities for sale under all applicable state securities laws.

*Redemption of warrants when the price per Ordinary Share equals or exceeds $10.00*

Once the Public Warrants become exercisable, they may be redeemed (i) in whole and not in part, (ii) at a price of $0.10 per warrant upon a minimum of 30 days' prior written notice of redemption provided that warrant holders will be able to exercise their warrants on a cashless basis prior to redemption and receive a specified number of Ordinary Shares based on the redemption date and the "fair market value" of the Ordinary Shares, (iii) if, and only if, the last reported sale price of Ordinary Shares equals or exceeds $10.00 per share (as adjusted for share

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three days before sending the notice of redemption to each warrant holder, and (iv) if the last reported sale price of the Ordinary Shares is less than $18.00 per share (as adjusted for share splits, share dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending three days before sending the notice of redemption to each warrant holder, the Private Warrants must also be concurrently called for redemption on the same terms as the outstanding Public Warrants.

For purposes of the foregoing, "fair market value" of the Ordinary Shares means the volume weighted average price of Ordinary Shares during the 10 trading days immediately following the date on which the notice of redemption is sent to the holders of warrants. Coincheck Parent will provide the warrant holders with the final fair market value no later than one business day after the 10-trading day period described above ends.

*Amendment*

The Warrant Agreement provides that (a) the terms of the Public Warrants may be amended without the consent of any holder for the purpose of (i) curing any ambiguity or correct any mistake, or (ii) adding or changing any provisions with respect to matters or questions arising under the Warrant Agreement as the parties to the Warrant Agreement may deem necessary or desirable and that the parties deem to not adversely affect the rights of the registered holders of the Public Warrants and (b) all other modifications or amendments require the vote or written consent of at least a majority of the then outstanding Public Warrants and, with respect to any amendment that solely affects the terms of the Private Warrants or any provision of the Warrant Agreement solely with respect to the Private Warrants will also require at least a majority of the then outstanding Private Warrants.

## Exhibit 8.1

**Exhibit 8.1**

**Subsidiaries of Coincheck Group N.V.<br>(as of June 30, 2025)**

---

| | |
|:---|:---|
| **Legal Name** | **Jurisdiction of Incorporation** |
| Coincheck, Inc. | Japan |
| Next Finance Tech Co., Ltd. | Japan |
| CCG Administrative Services, Inc. | Delaware, U.S.A. |

---

## Exhibit 11.1

**Exhibit 11.1**

**COINCHECK GROUP N.V.**

**SECURITIES TRADING POLICY**

This Securities Trading Policy ("<u>Policy</u>") contains the following sections:

1.0General

2.0Definitions

3.0Statement of Policy

4.0Other Prohibited Transactions

5.0Certain Limited Exceptions

6.0Pre-clearance of Trades and Other Procedures

7.010b5-1 and Other Trading Plans

8.0Potential Criminal and Civil Liability and/or Disciplinary Action

9.0Broker Requirements for Directors and Executive Officers

10.0Confidentiality

11.0Legal Effect of this Policy

**1.0General**

1.1Coincheck Group N.V. and its subsidiaries (collectively, the "<u>Company</u>") has adopted this Policy to prevent insider trading or even allegations of insider trading. Strict adherence to this Policy will help safeguard both the Company's reputation and integrity and your own. This Policy applies to all of the following (collectively, the "<u>Insiders</u>"), each of whom must, at all times, comply with the securities laws of the United States and all other applicable jurisdictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Company's directors, officers, employees and any other persons the Company determines should be subject to the Policy, such as employees of Monex Group, Inc. ("<u>Monex</u>") that have access to information of, or otherwise provide services to, the Company, contractors, consultants and other temporary employees (collectively, "<u>Company Personnel</u>");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the households of Company Personnel (including any person who lives in the household of Company Personnel whether or not a family member), and any family members of Company Personnel who do not live in their household but whose transactions in Company securities are directed by or subject to the influence or control of Company Personnel (e.g., parents or children who consult with Company Personnel before they trade in Company securities); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• trusts, corporations and other entities controlled by any of such persons.

1.2Securities laws prohibit trading in the securities of a company while aware of "inside" information. These transactions are commonly known as "insider trading". It is also illegal to recommend to others (commonly called "tipping") that they buy, sell or retain the securities of a company to which such inside information relates. This includes any communication providing inside information on social media or other internal or external internet platforms. Anyone violating these laws is subject to personal liability and could face significant fines and criminal penalties, including imprisonment. Federal securities laws also create a strong incentive for the Company to deter insider trading by its employees. In the normal course of business, Company Personnel may come into possession of inside information concerning the Company, its industry, transactions in which the Company proposes to engage, or customers, partners, vendors, or other entities with which the Company does business. Therefore, the Company has established this Policy with respect to trading in its securities and securities of certain other companies. Any violation of this Policy could subject you to disciplinary action, up to and including termination. See Section 8.0.

------

1.3This Policy concerns compliance as it pertains to the disclosure of inside information regarding the Company or another company and to trading in securities while in possession of such inside information. In addition to requiring that Insiders comply with the letter of the law, it is the Company's policy that Insiders exercise judgment so as to also comply with the spirit of the law and avoid even the appearance of impropriety.

1.4This Policy is intended to protect Insiders and the Company from insider trading violations. However, the matters set forth in this Policy are not intended to replace your responsibility to understand and comply with the legal prohibition on insider trading. Appropriate judgment should be exercised in connection with all securities trading. If you have specific questions regarding this Policy or applicable law, please contact the Chief Executive Officer or their designee.

**2.0Definitions**

2.1<u>Family Members</u>. For purposes of this Policy, the term "family members" includes family members who reside with you, anyone else who lives in your household and any family members who do not live in your household but whose transactions in the Company's securities are directed by you or are subject to your influence or control. Company Personnel are responsible for the transactions of their family members and therefore should make them aware of the need to confer with you before they trade in the Company's securities or securities of companies we do business with.

2.2<u>Material</u>. Information is generally considered "Material" if a reasonable investor would consider it important in deciding whether to buy, sell or hold a security. The information may concern the Company or another company and may be positive or negative. In addition, it should be emphasized that Material information does not have to relate to a company's business; information about the contents of a forthcoming publication in the financial press that is expected to affect the market price of a security could well be Material. Insiders should assume that information that would affect their consideration of whether to trade, or which might tend to influence the price of the security, is Material.

Examples of Material information may include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• earnings results, estimates and guidance on earnings, confirmations of or changes to previously released earnings results, estimates or guidance, or other performance related measures or metrics;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mergers, acquisitions or divestiture proposals or agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• investments, joint ventures, strategic alliances or changes in assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financings and other events regarding the Company's debt instruments and debt or equity securities (e.g., defaults, calls of securities for redemption, refinancings, amendments, share repurchase plans, share splits, public or private sales of securities, changes in dividends and changes to the rights of securityholders);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• acquisition of, refinancing or repayment of significant debts or defaults on debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant developments regarding lines of business, products or technology, significant intellectual property, relations with regulators, partnerships, and consortiums, including the acquisition or loss of an important piece of intellectual property, customer, contract or relationship;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in control or in senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant transactions in the Company's securities by its equityholders;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a significant disruption in the Company's operations or loss, potential loss, breach or unauthorized access of its property or assets, including its facilities, data and information technology infrastructure and cybersecurity and privacy incidents or events;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant changes in compensation policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant write-offs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in, or disagreements with, auditors or notifications that the Company may no longer rely on such firm's report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• significant pending or threatened litigation or governmental investigations, or significant developments with respect to litigation or governmental investigations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• layoffs, furloughs, bankruptcy, corporate restructuring or receivership.

Information that something is likely to happen or even just that it may happen can be Material. Courts often resolve close cases in favor of finding the information Material. Therefore, Insiders should err on the side of caution. Insiders should keep in mind that the rules and regulations of the Securities and Exchange Commission ("<u>SEC</u>") provide that the mere fact that a person is aware of the information is a bar to trading. It is no excuse that such person's reasons for trading were unrelated to the information.

Before determining whether specific information may be deemed Material, please contact the Chief Executive Officer or their designee.

2.3<u>Non-Public Information</u>. For the purpose of this Policy, all Company information is "Non-Public Information" until three criteria have been satisfied:

First, the information must have been widely disseminated by the Company. Generally, Insiders should assume that information has NOT been widely disseminated unless it has been disclosed by the Company in (i) a press release distributed through a widely disseminated news or wire service; (ii) a publicly available filing made with the SEC; or (iii) another comparable manner.

Second, the information disseminated must be some form of "official" announcement or disclosure, which, in the case of information about the Company, must be made by the Company. In other words, the fact that rumors, speculation, or statements attributed to unidentified sources are public is insufficient to be considered widely disseminated even when the rumors, speculation, or statements are accurate.

Third, after the information has been disseminated, a period of time must pass sufficient for the information to be absorbed by the general public. As a general rule, information should not be considered fully absorbed until after at least one full trading session has elapsed on the Nasdaq Stock Market ("<u>Nasdaq</u>") after the information has been publicly disclosed. For example, if the Company announces Material Non-Public Information before trading begins on Thursday, then you may execute a transaction in securities of the Company on Friday; if the Company announces Material Non-Public Information after trading ends on Thursday, then you may execute a transaction in securities of the Company on Monday. In addition, as discussed further below, even if you are not aware of any Material Non-Public Information, certain Insiders may only trade Company securities during specific Window Periods.

2.4<u>Restricted Persons</u>: The term "<u>Restricted Persons</u>" means Permanent Restricted Persons and Other Restricted Persons, as those terms are defined in Section 6.0.

2.5<u>Executive Officer</u>: The term "<u>Executive Officer</u>" shall mean the Company's principal executive officer, principal financial officer, principal accounting officer (or if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division, or function

------

(such as sales, administration, or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company. Executive officers of the Company's parent(s) or subsidiaries, as applicable, shall be deemed executive officers of the Company if they perform such policy-making functions for the Company.

2.6<u>Security or Securities</u>. The term "security" or "securities" is defined very broadly by the securities laws and includes shares, options, warrants, bonds, notes, debentures, convertible instruments, put or call options (i.e., exchange-traded options) or other similar instruments.

2.7<u>Trade or Trading</u>. The term "trade" or "trading" means broadly any purchase, sale or other transaction to acquire, transfer or dispose of securities, including derivative exercises, gifts or other contributions, pledges, exercises of options granted under the Company's equity plans, sales of shares acquired upon the exercise of options and trades made under an employee benefit plan.

**3.0Statement of Policy**

3.1<u>General – Coincheck Group N.V.</u> No Insider may trade the Company's securities at any time when the Insider has Material Non-Public Information concerning the Company. It is the responsibility of the Insider to be certain that he or she does not have Material Non-Public Information when determining to trade. For certain limited exceptions from prohibitions of trading imposed by this Policy, see Section 5.0 below.

3.2<u>General – Other Companies</u>. No Insider may trade securities of another company (a) with which the Company does business, such as the Company's vendors, customers, partners and suppliers, or (b) that is involved in a potential transaction or business relationship with Company, until the information becomes public or is no longer material, when the Insider has, in the course of working for the Company, learned of Material Non-Public Information about such company.

3.3<u>Tipping</u>. No Insider may disclose ("tip") Material Non-Public Information to any other person (including family members), and no Insider may make trading recommendations on the basis of Material Non-Public Information. In addition, Insiders should take care before trading on the recommendation of others to ensure that the recommendation is not the result of an illegal "tip."

3.4<u>Public Comment</u>. No Insider who receives or has access to the Company's Material Non-Public Information may comment on share price movements or rumors of other corporate developments (including discussions on social media, blogs or online comment forums) that are of possible significance to the investing public unless it is part of the Insider's job (such as Investor Relations) or the Insider has been specifically authorized in accordance with the Company's policies and procedures on communications, which prohibits selective disclosure of Material Non-Public Information to market participants by persons acting on behalf of the Company. If you comment on corporate developments, share price movements or rumors, or disclose Material Non-Public Information to a third party, you must immediately contact the Chief Executive Officer or their designee.

3.5<u>Media/Analyst Inquiries</u>. In addition, it is generally the practice of the Company not to respond to inquiries and/or rumors concerning the Company's affairs. If you receive inquiries concerning the Company from the media or inquiries from securities analysts or other members of the financial community, you should follow the Company's external communications policy and refer such inquiries, without comment, to the Chief Executive Officer or their designee.

3.6<u>Window Periods</u>. Even if you are not aware of any Material Non-Public Information, certain Insiders may only trade in the Company's securities during the four "Window Periods" (as defined below) that occur each fiscal year or in connection with an SEC-registered underwritten secondary offering of the Company and Restricted Persons must also receive pre-approval prior to any transaction involving the Company's securities. See Section 6.0.

------

3.7<u>The Company</u>. It is also the policy of the Company that the Company will not engage in transactions in securities of the Company while aware of Material Non-Public Information relating to the Company or its securities.

3.8<u>Policy Effective Time</u>. An Insider who is aware of Material Non-Public Information when they cease to be an Insider, may not trade in the Company's securities until that information has become public or is no longer material. In addition, this Policy continues in effect for all Restricted Persons until the opening of the first Window Period after termination of employment or other relationship with the Company, except that, unless notified otherwise by the Company, the pre-clearance requirements set forth in Section 6.0 continue to apply to Permanent Restricted Persons for six months after the termination of their status as a Permanent Restricted Person. See Section 6.3. If you have specific questions regarding this Policy, what may constitute Material Non-Public Information or applicable law, please contact the Chief Executive Officer or their designee.

**4.0Other Prohibited Transactions**

4.1<u>No Short Sales, Hedging or Speculative Transactions</u>. No Insider, whether or not they possess Material Non-Public Information, may trade in options, warrants, puts and calls or similar instruments on the Company's securities or sell such securities "short" (i.e., selling shares that are not owned and borrowing the shares to make delivery) or engage in speculative trading (e.g., "day-trading") that is intended to take advantage of short-term price fluctuations. Such activities may put the personal gain of the Insider in conflict with the best interests of the Company and its securityholders or otherwise give the appearance of impropriety. In addition, no Company Personnel may engage in any transactions (including variable forward contracts, equity swaps, collars and exchange funds) that are designed to hedge or offset any decrease in the market value of the Company's equity securities.

4.2<u>No Margin Accounts or Pledges</u>. Securities purchased on margin may be sold by the broker without the customer's consent if the customer fails to meet a margin call. Similarly, securities held in an account which may be borrowed against or are otherwise pledged (or hypothecated) as collateral for a loan may be sold in foreclosure if the borrower defaults on the loan. Accordingly, if you purchase securities on margin or pledge them as collateral for a loan, a margin sale or foreclosure sale may occur at a time when you are aware of Material Non-Public Information or otherwise are not permitted to trade in our securities. The sale, even though not initiated at your request, is still a sale for your benefit and may subject you to liability under the insider trading rules if made at a time when you are aware of Material Non-Public Information. Similar cautions apply to a bank or other loans for which you have pledged shares as collateral.

Therefore, no Insiders, whether or not in possession of Material Non-Public Information, may purchase the Company's securities on margin, or borrow against any account in which the Company's securities are held, or pledge the Company's securities as collateral for a loan without first obtaining pre-clearance. Request for approval must be submitted to the Chief Executive Officer or their designee at least two business days prior to the execution of the documents evidencing the proposed pledge. The Chief Executive Officer or their designee is under no obligation to approve any request for pre-clearance and may determine not to permit the arrangement for any reason. Approvals will be based on the particular facts and circumstances of the request, including, but not limited to, the percentage amount that the securities being pledged represent of the total number of our securities held by the person making the request and the financial capacity of the person making the request. Notwithstanding the pre-clearance of any request, the Company assumes no liability for the consequences of any transaction made pursuant to such request.

4.3<u>Managed Accounts</u>. If you have a managed account (where another person has been given discretion or authority to trade without your prior approval), you must advise your broker or investment advisor not to trade in Company securities at any time.

**5.0Certain Limited Exceptions**

The prohibition on trading in the Company's securities set forth in Section 3.0 above does not apply to:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• transferring shares to an entity that does not involve a change in the beneficial ownership of the shares (for example, to certain types of trusts of which you are the sole beneficiary during your lifetime);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the exercise of options to buy and hold the Company's shares (and **<u>not</u>** sell) (including any net settled option exercise to buy and hold) under the Company's equity incentive plans; *however, the* ***<u>sale</u>*** *of any such shares acquired upon such exercise, including as part of a broker-assisted cashless exercise of an option or any other market* ***<u>sale</u>*** *for the purpose of generating the cash needed to pay the exercise price of an option or to satisfy tax withholding requirements, is subject to this Policy;*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the withholding by the Company (whether mandated by the Company or pursuant to a tax withholding right) of shares underlying restricted share units or shares subject to an option, in each case to satisfy tax withholding requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the execution of transactions pursuant to a trading plan that complies with SEC Rule 10b5-1 and which has been approved by the Company (see Section 7.0);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• sales of the Company's securities as a selling shareholder in a registered public offering in accordance with applicable securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to the extent the Company offers its securities as an investment option in an employee share purchase plan, the purchase of shares through the Company's employee share purchase plan; however, elections to participate in such plan, the sale of any such shares and changing instructions regarding the level of withholding contributions which are used to purchase shares is subject to this Policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To the extent the Company offers a dividend reinvestment plan ("<u>DRIP</u>"), the purchase of shares through the DRIP resulting from reinvestment of dividends paid on the Company's securities; however, (i) a voluntary purchase of the Company's securities that results from additional contributions a participant chooses to make to the DRIP, and to a participant's election to participate, cease participation or otherwise alter his or her participation in the DRIP, and (ii) a participant's sale of any of the Company's securities purchased pursuant to the DRIP, are subject to this Policy.

**6.0Pre-clearance of Trades and Other Procedures**

6.1<u>Permanent Restricted Persons</u>. The following are "<u>Permanent Restricted Persons</u>":

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive Officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• employees of Monex and Coincheck, Inc. that have access to information of, or otherwise provide services to, the Company (that are specifically designated by the Company); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any person who lives in the household whether or not a family member, and any of their family members who do not live in their household but whose transactions in Company securities they direct, influence, or control (e.g., parents or children who consult with Company Personnel before they trade in Company securities), and trusts, corporations and other entities controlled by any of such persons.

Restricted Persons must obtain the advance approval of the Chief Executive Officer or their designee, in accordance with Section 6.3 before effecting trades of, or engaging in other transactions in, the Company's securities, including, but not limited to, any purchase or sale, any exercise of an option (whether cashless or otherwise), gifts, loans, rights or warrant to purchase or sell such securities, contribution to a trust or other transfers, whether the transaction is for the individual's own account, one over which they exercise control or one in which they have a beneficial interest.

------

6.2<u>Other Restricted Persons</u>. From time to time, the Company will notify persons other than Permanent Restricted Persons that they are subject to the pre-clearance requirements set forth in Section 6.3 if the Company believes that, in the normal course of their duties, they are likely to have regular access to Material Non-Public Information ("<u>Other Restricted Persons</u>"). Examples of such persons include members of the business development, finance, legal, corporate development, and strategy departments and their households (including any person who lives in the household whether or not a family member), and any of their family members who do not live in their household but whose transactions in Company securities they direct, influence, or control (e.g., parents or children who consult with Company Personnel before they trade in Company securities), and trusts, corporations and other entities controlled by any of such persons. Occasionally, certain individuals may have access to Material Non-Public Information for a limited period of time. During such a period, such persons may be notified that they are also Other Restricted Persons who will be subject to the pre-clearance requirements set forth in Section 6.3 and the Window Period restrictions set forth in Section 6.4. Any person notified of their status as an Other Restricted Person will remain an Other Restricted Person subject to the pre-clearance requirements set forth in Section 6.3 unless otherwise notified by the Chief Executive Officer or their designee.

6.3<u>Pre-Clearance Procedures</u>. Subject to Section 7.0, Restricted Persons must submit a request for pre-clearance to the Chief Executive Officer or their designee, at least two business days in advance of the proposed transaction (including for using shares as collateral for a loan) and by completing the attached "Request for Approval" form. Approval must be in writing, dated and signed, specifying the securities involved. **Approval for transactions will generally be granted only during a Window Period (described in Section 6.4 below) and the transaction may only be performed during the Window Period in which the approval was granted and in any event within three business days from the date of approval, provided that notwithstanding receipt of pre-clearance, you may not trade in Company securities if you subsequently become aware of Material Non-Public Information prior to effecting the transaction.** Unless otherwise notified by the Company, Permanent Restricted Persons must comply with these pre-clearance requirements for six months after the termination of their status as a Permanent Restricted Person.

6.4Window Periods. The Company has established four "windows" of time during the fiscal year ("Window Periods") during which Request for Approval forms may be approved and trading may be performed by Restricted Persons. Each Window Period begins after one full trading session on the Nasdaq has been completed after the Company makes a public news release of its quarterly or annual earnings for the prior fiscal quarter or year. Assuming the Nasdaq is open each day, the following indicates when such persons may trade after the Company's public news release of its quarterly or annual earnings for the prior fiscal quarter or year:

<u>Announcement on Tuesday</u> <u>First Day of Trading</u>

Before market opens Wednesday

While market is open Thursday

After market closes Thursday

That same Window Period will generally close at the close of business on the last trading day that is two weeks prior to the end of the then current fiscal quarter. After the close of the Window Period, except as set forth in Section 5.0 above, Restricted Persons may not trade in any of the Company's securities at least until the start of the next Window Period. The prohibition against trading while aware of, or tipping of, Material Non-Public Information applies even during a Window Period. For example, if during a Window Period, a material acquisition or divestiture is pending or a forthcoming publication in the financial press may affect the relevant securities market, you may not trade in the Company's securities. You must consult the Chief Executive Officer or their designee, whenever you are in doubt.

6.5<u>Special Blackouts</u>. From time to time, the Company may require that directors, officers, selected employees and/or others be prohibited from trading in the Company's securities, including during a Window Period, regardless of any other provision of this Policy because of developments that have not yet been disclosed to the public. If the Company declares a blackout to which you are subject, then an Executive Officer or a

------

member of the Legal Department will notify you when the blackout begins and when it ends. *All those affected shall not trade in the Company's securities while the suspension is in effect, and shall not disclose to others inside or outside the Company that trading has been suspended for certain individuals*. Although these blackouts generally will arise because the Company is involved in a highly-sensitive transaction, incident or event, they may be declared for any reason.

6.6<u>Notification of Window Periods</u>. In order to assist you in complying with this Policy, the Company will endeavor to deliver an e-mail (or other communication) notifying all Restricted Persons when the Window Period has opened and when the Window Period closes. The Company's delivery or nondelivery of these e-mails (or other communication) does not relieve you of your obligation to only trade in the Company's securities in full compliance with this Policy.

6.7<u>Hardship Exemptions</u>. Those subject to the Window Periods or a special blackout pursuant to Section 6.5 may request a hardship exemption for periods outside the Window Periods or during a blackout, as applicable, if they are not in possession of Material Non-Public Information and are not otherwise prohibited from trading pursuant to this Policy. Hardship exemptions are granted infrequently and only in exceptional circumstances. Any request for a hardship exemption should be made to the Executive Chairperson or their designee and will be subject to applicable law.

**7.010b5-1 and Other Trading Plans**

7.1<u>10b5-1 Trading Plans</u>. SEC Rule 10b5-1 provides generally that a purchase or sale is "on the basis" of Material Non-Public Information if the person engaging in the transaction is aware of the Material Non-Public Information when the person makes the purchase or sale.

7.2A 10b5-1 trading plan is a binding, written contract between you and your broker that specifies the price, amount, and date of trades to be executed in your account in the future, or provides a formula or mechanism that your broker will follow, and satisfies various other conditions and limitations set forth in Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (the "<u>Exchange Act</u>"). A 10b5-1 trading plan can only be established when you do not possess Material Non-Public Information. Therefore, Insiders cannot enter into, or amend, these plans at any time when in possession of Material Non-Public Information and, in addition, Restricted Persons cannot enter into these plans outside Window Periods. In addition, a 10b5-1 trading plan must not permit you to exercise any subsequent influence over how, when, or whether the purchases or sales are made.

The 10b5-1 trading plan must also be entered into in good faith and without any purpose of evading the prohibitions of the SEC's rules and the person who entered into such plan must act in good faith with respect to the plan. In some circumstances, terminating a 10b5-1 trading plan that is in place could call into question whether it was entered into in good faith.

7.3The rules regarding 10b5-1 trading plans are complex and you must fully comply with them. 10b5-1 Plans must comply with the conditions and limitations set forth in Rule 10b5-1 of the Exchange Act including, but not limited to, the length of time between plan commencement and the first trade thereunder (i.e., "cooling-off periods"), certification requirements and restrictions on overlapping plans, as applicable. The Company recommends that you consult your legal advisor before entering into a 10b5-1 trading plan.

7.4Any proposed trading plan or arrangement by Insiders, including 10b5-1 trading plans, must be pre-approved by the Chief Executive Officer or their designee, prior to establishing, amending or terminating such plan (and such request shall be submitted at least five business days in advance of the proposed effective date). The Company reserves the right to withhold approval of the adoption, amendment or termination of any such trading plan that the Company determines is not consistent with the rules regarding such plans. No Insider will be permitted to adopt a Rule 10b5-1 trading plan if such Insider has an existing contract, instruction or plan that would qualify for the affirmative defense under Rule 10b5-1, subject to the exceptions set forth in

------

the rule. Notwithstanding any approval of a Rule 10b5-1 or other trading plan, the Company assumes no liability for the consequences of any transaction made pursuant to such plan.

7.5If you enter into a 10b5-1 trading plan, your 10b5-1 trading plan should be structured to avoid purchases or sales on dates occurring shortly before known announcements, such as quarterly or annual earnings announcements. Even though transactions executed in accordance with a properly formulated 10b5-1 trading plan are exempt from the insider trading rules, the trades may nonetheless occur at times shortly before we announce material news, and the investing public and media may not understand the nuances of trading pursuant to a 10b5-1 trading plan. This could result in negative publicity for you and the Company if the SEC or Nasdaq were to investigate your trades.

7.6For Insiders, any modification or termination of a pre-approved 10b5-1 or other trading plan requires pre-clearance by the Chief Executive Officer or their designee. In addition, any modification of a pre-approved 10b5-1 or other trading plan must occur when you are not aware of any Material Non-Public Information and must comply with the requirements of the rules regarding such trading plans (including Rule 10b5-1, if applicable) and, if you are subject to Window Period restrictions, must take place during a Window Period.

7.7Transactions effected pursuant to a pre-cleared 10b5-1 or other trading plan will not require further pre-clearance at the time of the transaction if the plan specifies the dates, prices and amounts of the contemplated trades, or establishes a formula for determining the dates, prices and amounts.

**8.0Potential Criminal and Civil Liability and/or Disciplinary Action**

8.1<u>Individual Responsibility</u>. Each Insider is individually responsible for complying with the securities laws and this Policy, regardless of whether the Company has prohibited trading by that Insider or any other Insiders. Trading in securities during the Window Periods and outside of any special blackout periods, or with pre-clearance, should not be considered a "safe harbor." We remind you that, at no time, whether or not during a Window Period and whether or not you have obtained approval, may you trade securities while in possession of Material Non-Public Information.

You should also bear in mind that any proceeding alleging improper trading will necessarily occur after the trade has been completed and is particularly susceptible to second-guessing with the benefit of hindsight. Therefore, as a practical matter, before engaging in any transaction you should carefully consider how enforcement authorities and others might view the transaction in hindsight. Further, whether or not you possess Material Non-Public Information, it is advisable that if you invest in the Company's securities or the securities of any company that has a substantial relationship with the Company, then you do so from the perspective of a long term investor who would like to participate over time in the Company's or such other company's earnings growth and with the knowledge that you may be prohibited from disposing of such securities in the future.

8.2<u>Controlling Persons</u>. Federal securities laws provide that, in addition to sanctions against an individual who trades illegally, penalties may be assessed against what are known as "controlling persons" with respect to the violator. The term "controlling person" is not defined, but includes employers (i.e., the Company), its directors, officers and managerial and supervisory personnel. The concept is broader than what would normally be encompassed by a reporting chain. Individuals may be considered "controlling persons" with respect to any other individual whose behavior they have the power to influence. Liability can be imposed only if two conditions are met. First, it must be shown that the "controlling person" knew or recklessly disregarded the fact that a violation was likely. Second, it must be shown that the "controlling person" failed to take appropriate steps to prevent the violation from occurring. For this reason, the Company's supervisory personnel are directed to take appropriate steps to ensure that those whom they supervise understand and comply with the requirements set forth in this Policy.

8.3<u>Potential Sanctions</u>.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<u>Liability for Insider Trading and Tipping</u>. Insiders, controlling persons and the Company may be subject to civil penalties, criminal penalties and/or jail for trading in securities when they have Material Non-Public Information or for improper transactions by any person (commonly referred to as a "tippee") to whom they have disclosed Material Non-Public Information, or to whom they have made recommendations or expressed opinions on the basis of such information about trading securities. The SEC has imposed large penalties even when the disclosing person did not profit from the trading. The SEC, the stock exchanges and the Financial Industry Regulatory Authority use sophisticated electronic surveillance techniques to uncover insider trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Possible Disciplinary Actions. Company Personnel who violate this Policy will be subject to disciplinary action, up to and including termination of employment for cause or termination of other service relationship, whether or not the Company Personnel's failure to comply results in a violation of law. Needless to say, a violation of law, or even an SEC investigation that does not result in prosecution, can tarnish one's reputation and irreparably damage a career.

8.4<u>Questions and Violations</u>. Anyone with questions concerning this Policy or its application should contact the Chief Executive Officer or their designee, who shall consult with counsel as necessary. Any violation or perceived violation should be reported immediately to the Chief Executive Officer or their designee. Anonymous reporting of violations or perceived violations may be made through the Company's Ethics and Compliance Hotline.

**9.0Broker Requirements for Directors and Executive Officers**

A knowledgeable, alert broker can serve as a gatekeeper, helping to ensure compliance with our pre-clearance procedures and helping prevent inadvertent violations. Therefore, in order to facilitate compliance by Directors and Executive Officers, brokers of Directors and Executive Officers must comply with the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• not to enter any order (except for orders under pre-approved Rule 10b5-1 plans) without first verifying with the Company that the transaction was pre-cleared under Section 6.3 and complying with the brokerage firm's compliance procedures (e.g., Rule 144); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• to report before the close of business on the day of the execution of the transaction to the Company by telephone and in writing via e-mail to the Chief Executive Officer or their designee, the complete (i.e., date, type of transaction, number of shares and price) details of every transaction involving the Company's equity securities, including gifts, transfers, and all transactions under 10b5-1 and other trading plans.

Because it is the legal obligation of the trading person to cause any filings on Form 144 (or as may otherwise be required), to be made, you are strongly encouraged to confirm following any transaction that your broker has immediately telephoned and e-mailed the required information to the Company.

**10.0Confidentiality**

No Company Personnel should disclose any Non-Public Information to non-Company Personnel (including to family members that are non-Company Personnel), except when such disclosure is needed to carry out the Company's business and then only when the Company Personnel disclosing the information has no reason to believe that the recipient will misuse the information (for example, when such disclosures are authorized as necessary to facilitate negotiations with vendors, suppliers or customers or when such persons are subject to contractual confidentiality restrictions). When such information is disclosed, the recipient must be told that such information may be used only for the business purpose related to its disclosure and that the information must be held in confidence. Company Personnel should disclose Non-Public Information to other Company Personnel only in the ordinary course of business, for legitimate business purposes and in the absence of reasons to believe that the information will be misused or improperly disclosed by the recipient. Non-Public

------

Information should be appropriately safeguarded and should not be left where it may be seen by persons not entitled to the information or otherwise accessible by persons not entitled to the information, and Non-Public Information should not be discussed with any person within the Company under circumstances where it could be overheard.

In addition to other circumstances where it may be applicable, this confidentiality policy must be strictly adhered to in responding to inquiries about the Company that may be made by the press, securities analysts or other members of the financial community. It is important that responses to any such inquiries be made on behalf of the Company by a duly designated officer. Accordingly, Company Personnel should not respond to any such inquiries and should refer all such inquiries to the Chief Executive Officer or their respective designee.

Neither this Policy nor any other agreement with the Company or policy of the Company, shall be deemed to prohibit any current or former director, officer, or employee of the Company from communicating, cooperating or filing a charge or complaint with the SEC or any other governmental or law enforcement entity, concerning possible violations of any legal or regulatory requirement, or making disclosures, including providing documents or other information to a governmental entity that are protected under the whistleblower provisions of any applicable law or regulation, without notice to or approval of the Company, so long as (i) such communications and disclosures are consistent with applicable law and (ii) the information disclosed was not obtained through a communication that was subject to the attorney-client privilege (unless disclosure of that information would otherwise be permitted by an attorney pursuant to the applicable federal law, attorney conduct rules or otherwise). The Company will not limit the right of any current or former director, officer, or employee to receive an award for providing information pursuant to the whistleblower provisions of any applicable law or regulation to the SEC or any other government agency. Any provisions of any agreement between the Company and any current or former director, officer, or employee that is inconsistent with the above language or that may limit the ability of any person to receive an award under the whistleblowing provisions of applicable law is hereby deemed invalid and will not be enforced by the Company.

**11.0Legal Effect of this Policy** 

The Company's Policy with respect to securities trading and the disclosure of confidential information, and the procedures that implement this Policy, are not intended to serve as precise recitations of the legal prohibitions against insider trading and tipping which are highly complex, fact specific and evolving. Certain of the procedures are designed to prevent even the appearance of impropriety and in some respects may be more restrictive than the securities laws. Therefore, these procedures are not intended to serve as a basis for establishing civil or criminal liability that would not otherwise exist.

Adopted by the Board of Directors

Effective Date: February 10, 2025

## Exhibit 12.1

**Exhibit 12.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

I, Gary A. Simanson, certify that:

1. I have reviewed this annual report on Form 20-F for the fiscal year ended March 31, 2025 of Coincheck Group N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)[Intentionally omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: July 30, 2025

By: /s/ Gary A. Simanson

Gary A. Simanson

Chief Executive Officer and President

(Principal Executive Officer)

## Exhibit 12.2

**Exhibit 12.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

I, Jason Sandberg, certify that:

1. I have reviewed this annual report on Form 20-F for the fiscal year ended March 31, 2025 of Coincheck Group N.V.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)[Intentionally omitted];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: July 30, 2025

By: /s/ Jason Sandberg

Jason Sandberg

Chief Financial Officer

(Principal Financial Officer)

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 20-F of Coincheck Group N.V. (the "Company") for the fiscal year ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Gary A. Simanson, Chief Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 30, 2025

By: /s/ Gary A. Simanson

Gary A. Simanson

Chief Executive Officer and President

(Principal Executive Officer)

*\* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.*

## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATION PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Annual Report on Form 20-F of Coincheck Group N.V. (the "Company") for the fiscal year ended March 31, 2025, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Jason Sandberg, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: July 30, 2025

By: /s/ Jason Sandberg

Jason Sandberg

Chief Financial Officer

(Principal Financial Officer)

*\* The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document.*

## Exhibit 15.1

**Exhibit 15.1**

**Consent of Independent Registered Public Accounting Firm**

We consent to the incorporation by reference in the registration statement (No. 333-286190) on Form S-8 of our report dated July 30, 2025, with respect to the consolidated financial statements of Coincheck Group N.V and its subsidiaries.

/s/ KPMG AZSA LLC

Tokyo, Japan <br>July 30, 2025

## Exhibit 97.1

**Exhibit 97.1**

**COINCHECK GROUP N.V.**

**<u>Incentive Compensation</u>**

**<u>Clawback Policy</u>**

<u>(As Adopted on December 10, 2024 Pursuant to Nasdaq Rule5608)</u>

**1. Overview**. The Board of Directors (the ***"Board"***) of Coincheck Group N.V. (the ***"Company"***) has adopted this Incentive Compensation Clawback Policy (the ***"Policy"***) which requires the recoupment of certain incentive-based compensation in accordance with the terms herein and is intended to comply with Listing Rule 5608, as promulgated by The Nasdaq Stock Market LLC, as such rule may be amended from time to time (the ***"Listing Rules"***). Capitalized terms not otherwise defined herein shall have the meanings assigned to such terms under Section 12 of this Policy.

**2. Interpretation and Administration**. The Compensation Committee of the Board shall have at all times full authority to interpret and enforce the Policy; provided, however, that the Policy shall be interpreted in a manner consistent with its intent to meet the requirements of the Listing Rules. As further set forth in Section 10 below, this Policy is intended to supplement any other clawback policies and procedures that the Company may have in place from time to time pursuant to other applicable law, plans, policies or agreements.

**3. Covered Executives**. The Policy applies to each current and former Executive Officer of the Company who serves or served as an Executive Oﬃcer at any time during a performance period in respect of which Incentive Compensation is Received, to the extent that any portion of such Incentive Compensation is (a) Received by the Executive Officer during the last three completed Fiscal Years or any applicable Transition Period preceding the date that the Company is required to prepare a Restatement (regardless of whether any such Restatement is actually filed) and (b) determined to have included Erroneously Awarded Compensation. For purposes of determining the relevant recovery period referenced in the preceding clause (a), the date that the Company is required to prepare a Restatement under the Policy is the earlier to occur of (i) the date that the Board, a committee of the Board, or the officer or officers of the Company authorized to take such action if Board action is not required, concludes, or reasonably should have concluded, that the Company is required to prepare a Restatement or (ii) the date a court, regulator, or other legally authorized body directs the Company to prepare a Restatement. Executive Officers subject to this Policy pursuant to this Section 3 are referred to herein as ***"Covered Executives."***

**4. Recovery of Erroneously Awarded Compensation**. If any Erroneously Awarded Compensation is Received by a Covered Executive, the Company shall reasonably promptly take steps to recover such Erroneously Awarded Compensation in a manner described under Section 5 of this Policy.

**5. Forms of Recovery**. The Compensation Committee shall determine, in its sole discretion and in a manner that effectuates the purpose of the Listing Rules, one or more methods for recovering any Erroneously Awarded Compensation hereunder in accordance with Section 4 above, which may include, without limitation: (a) requiring cash reimbursement; (b) seeking recovery or forfeiture of any gain realized on the vesting, exercise, settlement, sale, transfer or other disposition of any equity-based awards; (c) offsetting the amount to be recouped from any compensation otherwise owed by the Company to the Covered Executive; (d) cancelling outstanding vested or unvested equity awards; or (e) taking any other remedial and recovery action permitted by law, as determined by the Compensation Committee. To the extent the Covered Executive refuses to pay to the Company an amount equal to the Erroneously Awarded Compensation, the Company shall have the right to sue for repayment and/or enforce the Covered Executive's obligation to make payment through the reduction or cancellation of outstanding and future compensation. Any reduction, cancellation or forfeiture of compensation shall be done in compliance with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations promulgated thereunder.

------

**6. No Indemnification**. The Company shall not indemnify any Covered Executive against the loss of any Erroneously Awarded Compensation for which the Compensation Committee has determined to seek recoupment pursuant to this Policy.

**7. Exceptions to the Recovery Requirement**. Notwithstanding anything in this Policy to the contrary, Erroneously Awarded Compensation need not be recovered pursuant to this Policy if the Compensation Committee (or, if the Compensation Committee is not composed solely of Independent Directors), a majority of the Independent Directors serving on the Board, determines that recovery would be impracticable as a result of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)the direct expense paid to a third party to assist in enforcing the Policy would exceed the amount to be recovered; provided that, before concluding that it would be impracticable to recover any amount of Erroneously Awarded Compensation based on expense of enforcement, the Company must make a reasonable attempt to recover such Erroneously Awarded Compensation, document such reasonable attempt(s) to recover, and provide that documentation to the Exchange;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)recovery would violate home country law where that law was adopted prior to November 28, 2022; provided that, before concluding that it would be impracticable to recover any amount of Erroneously Awarded Compensation based on violation of home country law, the Company must obtain an opinion of home country counsel, acceptable to the Exchange, that recovery would result in such a violation, and must provide such opinion to the Exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)recovery would likely cause an otherwise tax-qualified retirement plan, under which benefits are broadly available to employees of the Company, to fail to meet the requirements of 26 U.S.C. 401(a)(13) or 26 U.S.C. 411(a) and the regulations thereunder.

**8. Compensation Committee Determination Final**. Any determination by the Compensation Committee with respect to the Policy shall be final, conclusive and binding on all interested parties.

**9. Amendment**. The Policy may be amended by the Board from time to time, to the extent permitted under the Listing Rules.

**10. Non-Exclusivity**. Nothing in the Policy shall be viewed as limiting the right of the Company or the Board to pursue additional remedies or recoupment under or as required by any similar policy adopted by the Company or under the Company's compensation plans, award agreements, employment agreements or similar agreements or the applicable provisions of any law, rule or regulation which may require or permit recoupment to a greater degree or with respect to additional compensation as compared to this Policy (but without duplication as to any recoupment already made with respect to Erroneously Awarded Compensation pursuant to this Policy). This Policy shall be interpreted in all respects to comply with the Listing Rules.

**11. Successors**. The Policy shall be binding and enforceable against all Covered Executives and their beneficiaries, heirs, executors, administrators or other legal representatives.

**12. Defined Terms**

***"Covered Executives"*** shall have the meaning set forth in Section 3 of this Policy.

***"Erroneously Awarded Compensation"*** shall mean the amount of Incentive Compensation actually Received that exceeds the amount of Incentive Compensation that otherwise would have been Received had it been determined based on the restated amounts, and computed without regard to any taxes paid. For Incentive Compensation based on stock price or total shareholder return, where the amount of erroneously awarded Incentive Compensation is not subject to mathematical recalculation directly from the information in a Restatement:

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)The calculation of Erroneously Awarded Compensation shall be based on a reasonable estimate of the effect of the Restatement on the stock price or total shareholder return upon which the Incentive Compensation was Received; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)The Company shall maintain documentation of the determination of that reasonable estimate and provide such documentation to the Exchange.

***"Exchange"*** shall mean The Nasdaq Stock Market.

***"Executive Officer"*** shall mean the Company's president, principal financial officer, principal accounting officer (or if there is no such accounting officer, the controller), any vice-president of the Company in charge of a principal business unit, division, or function (such as sales, administration, or finance), any other officer who performs a policy-making function, or any other person who performs similar policy-making functions for the Company. Executive officers of the Company's parent(s) or subsidiaries shall be deemed executive officers of the Company if they perform such policy-making functions for the Company.

***"Financial Reporting Measures"*** shall mean measures that are determined and presented in accordance with the accounting principles used in preparing the Company's financial statements, and any measures that are derived wholly or in part from such measures, including, without limitation, stock price and total shareholder return (in each case, regardless of whether such measures are presented within the Company's financial statements or included in a filing with the Securities and Exchange Commission).

***"Fiscal Year"*** shall mean the Company's fiscal year; provided that a Transition Period between the last day of the Company's previous fiscal year end and the first day of its new fiscal year that comprises a period of nine to 12 months will be deemed a completed fiscal year.

***"Incentive Compensation"*** shall mean any compensation (whether cash or equity-based) that is granted, earned, or vested based wholly or in part upon the attainment of a Financial Reporting Measure, and may include, but shall not be limited to, performance bonuses and long-term incentive awards such as stock options, stock appreciation rights, restricted stock, restricted stock units, performance share units or other equity-based awards. For the avoidance of doubt, Incentive Compensation does not include (i) awards that are granted, earned and vested exclusively upon completion of a specified employment period, without any performance condition, and (ii) bonus awards that are discretionary or based on subjective goals or goals unrelated to Financial Reporting Measures. Notwithstanding the foregoing, compensation amounts shall not be considered "Incentive Compensation" for purposes of the Policy unless such compensation is Received (1) while the Company has a class of securities listed on a national securities exchange or a national securities association and (2) on or after October 2, 2023, the effective date of the Listing Rules.

***"Independent Director"*** shall mean a director who is determined by the Board to be "independent" for Board or Compensation Committee membership, as applicable, under the rules of the Exchange, as of any determination date.

***"Listing Rules"*** shall have the meaning set forth in Section 1 of this Policy.

Incentive Compensation shall be deemed ***"Received"*** in the Company's fiscal period during which the Financial Reporting Measure specified in the Incentive Compensation award is attained, even if the payment or grant of the Incentive Compensation occurs after the end of that period.

***"Restatement"*** shall mean an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws, including any required accounting restatement to correct an error in previously issued financial statements that is material to the Company's previously issued financial statements, or that would result in a material misstatement if the error were corrected in the current period or left uncorrected in the current period.

------

***"Transition Period"*** shall mean any transition period that results from a change in the Company's Fiscal Year within or immediately following the three completed Fiscal Years immediately preceding the Company's requirement to prepare a Restatement.

**Adopted on: December 10, 2024**

------

**Acknowledgment of Incentive Compensation Clawback Policy**

Reference is made to the Coincheck Group N.V. Incentive Compensation Clawback Policy (as adopted on December 10, 2024 pursuant to Nasdaq Rule 5608) (the "Policy"). Capitalized terms used herein without definition have the meanings assigned to such terms under the Policy.

By signing below, the undersigned acknowledges, confirms and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the undersigned has received and reviewed a copy of the Policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the undersigned is, and will continue to be, subject to the Policy to the extent provided therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the Policy may apply both during and after termination of the undersigned's employment or service with the Company and its affiliates; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the undersigned agrees to abide by the terms of the Policy, including, without limitation, by returning any Erroneously Awarded Compensation to the Company pursuant to the Policy.

________________________________

Signature

________________________________

Print Name

________________________________

Date

## Exhibit 99.1

?xml version='1.0' encoding='ASCII'? cnck-20250331_d2

**COINCHECK GROUP N.V. and its subsidiaries**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
| <u>[REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#ice4c7302898b49b3925264c51aaf6c88_838)</u> (Auditor firm ID: 1009).. | F-2 |
| <u>[CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE](#ice4c7302898b49b3925264c51aaf6c88_4)</u><br><u>[INCOME](#ice4c7302898b49b3925264c51aaf6c88_4)</u>..........................................................................................................................................................<br>| F-4 |
| <u>[CONSOLIDATED STATEMENTS OF FINANCIAL POSITION](#ice4c7302898b49b3925264c51aaf6c88_7)</u>................................................................ | F-5 |
| <u>[CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY](#ice4c7302898b49b3925264c51aaf6c88_10)</u>................................................................. | F-7 |
| <u>[CONSOLIDATED STATEMENTS OF CASH FLOWS](#ice4c7302898b49b3925264c51aaf6c88_13)</u>................................................................................ | F-8 |
| <u>[NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS](#ice4c7302898b49b3925264c51aaf6c88_16)</u>............................................................. | F-10 |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

To the Stockholders and Board of Directors

Coincheck Group N.V.:

*Opinion on the Consolidated Financial Statements*

We have audited the accompanying consolidated statements of financial position of Coincheck Group N.V. and

subsidiaries (the Company) as of March 31, 2025 and 2024, the related consolidated statements of profit or loss and

other comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended

March 31, 2025, and the related notes (collectively, the consolidated financial statements). In our opinion, the

consolidated financial statements present fairly, in all material respects, the financial position of the Company as of

March 31, 2025 and 2024, and the results of its operations and its cash flows for each of the years in the three-year

period ended March 31, 2025, in conformity with IFRS Accounting Standards as issued by the International

Accounting Standards Board.

*Change in Accounting Principle*

As discussed in Note 2(5) to the consolidated financial statements, the Company has changed its method of

accounting for obligations to safeguard crypto assets for customers as of March 31, 2025, with retrospective

application to all periods presented, due to the adoption of SEC Staff Accounting Bulletin No. 122.

*Basis for Opinion*

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is

to express an opinion on these consolidated financial statements based on our audits. We are a public accounting

firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to

be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable

rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and

perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of

material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks

of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing

procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the

amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting

principles used and significant estimates made by management, as well as evaluating the overall presentation of the

consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

*Critical Audit Matter*

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated

financial statements that was communicated or required to be communicated to the audit committee and that: (1)

relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our

especially challenging, subjective, or complex judgments. The communication of critical audit matter does not alter

in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by

communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the

accounts or disclosures to which it relates.

*Evaluation of the existence of and the Company's rights related to crypto assets (current assets) held in cold wallets,* 

*and assessment of the obligation to safeguard crypto assets held on behalf of its customers in cold wallets*

As discussed in Notes 3 (3) (a), 4 (1) (d), 13 and 30 (1) to the consolidated financial statements, the Company holds

crypto assets for its own account (crypto assets held (current assets)) and, on behalf of its customers, in cold wallets.

These cold wallets are administered by the Company and the Company has control of the private keys associated

with them, allowing it to access and transact with the crypto assets held therein. If a private key is lost, destroyed or

otherwise compromised, the Company would lose access to the crypto asset. If the Company loses access to a crypto

asset held for its own account, the Company derecognizes the crypto asset held. If the Company loses access to a

crypto asset held on behalf of customers, the Company may be liable to its customers for losses arising from the

Company's failure to safeguard crypto assets from theft or loss. The Company has not incurred any losses from such

obligations and therefore has not accrued any related liabilities as of March 31, 2025.

We identified the evaluation of the existence of and the Company's rights to crypto assets held (current assets) for

its own account in cold wallets, and the assessment of the Company's obligation to safeguard crypto assets held on

behalf of its customers in cold wallets as a critical audit matter. A high degree of auditor judgment was required to

determine the nature and extent of the procedures performed and audit evidence obtained to evaluate the existence of

and the Company's rights to crypto assets held (current assets) for its own account in cold wallets, and the

assessment of the obligation to safeguard crypto assets held on behalf of its customers in cold wallets, as control

over these crypto assets is provided through private keys.

The following are the primary procedures we performed to address this critical audit matter. We involved IT

professionals with specialized skills and knowledge, who assisted in:

• evaluating the design of certain internal controls over the existence of and the Company's rights to crypto

assets held in cold wallets, as well as testing the operating effectiveness of certain of these controls,

including controls related to access management, segregation of duties across certain processes connected

with the holding of crypto assets in cold wallets, and management's reconciliation of internal records to

public blockchains

• comparing the Company's records of select crypto assets held in cold wallets to the records on public

blockchains using software audit tools

• evaluating the reliability of audit evidence obtained from public blockchains and

• obtaining evidence that management had control of the private keys required to access the crypto assets

held in cold wallets by observing the movement of crypto assets in the blockchain, using the related private

keys, and comparing to the Company's internal records for a selection of crypto asset transactions.

We evaluated the nature and extent of audit evidence obtained by assessing the results of procedures performed over

the existence of and the Company's rights to crypto assets held in cold wallets and the assessment of the obligation

to safeguard crypto assets held on behalf of its customers in cold wallets.

/s/ KPMG AZSA LLC

We have served as the Company's auditor since 2018.

Tokyo, Japan

July 30, 2025

![](cnck-20250331_g13.gif)

<sup>\*</sup> Weighted average number of shares has been retrospectively restated to reflect the Reverse Recapitalization.

**COINCHECK GROUP N.V. and its subsidiaries**

**CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE** 

**INCOME**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **Notes** | **2023** | **2024** | **2025** |
| **Revenue:** |  |  |  |  |
| Revenue | 7 | ¥175,992 | ¥223,775 | ¥383,205 |
| Other revenue | 7 | 932 | 274 | 125 |
| **Total revenue** | 7 | 176924 | 224049 | 383330 |
| **Expenses:** |  |  |  |  |
| Cost of sales |  | 169604 | 214786 | 369852 |
| Selling, general and administrative expenses | 8, 20 | 8039 | 6757 | 14458 |
| **Total expenses** |  | 177643 | 221543 | 384310 |
| **Operating profit (loss)** |  | (719) | 2506 | (980) |
| **Other income and expenses** |  |  |  |  |
| Other income | 9 | 45 | 437 | 22 |
| Other expenses | 9 | (165) | (153) | (105) |
| Listing expense | 6 |  |  | (13714) |
| Financial income | 10 |  | 67 | 1457 |
| Financial expenses | 10 | (7) | (17) | (39) |
| **Profit (loss) before income taxes** |  | (846) | 2840 | (13359) |
| Income tax (benefit) expense | 19 | (287) | 873 | 991 |
| **Net profit (loss) for the period attributable to** <br>**owners of the Company**<br>| 28 | (559) | 1967 | (14350) |
| **Other comprehensive income:** |  |  |  |  |
| Foreign currency translation adjustment |  |  |  | 13 |
| **Total comprehensive income (loss) for the year** <br>**attributable to owners of the Company**<br>|  | ¥(559) | ¥1,967 | ¥(14337) |
| Earnings (loss) per share: |  | (Yen) | (Yen) | (Yen) |
| Basic and diluted earnings (loss) per share | 28 | (4.56) | 16.05 | (114.98) |
| Weighted-average shares - basic and diluted<sup>\*</sup> | 28 | 122587617 | 122587617 | 124803262 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**COINCHECK GROUP N.V. and its subsidiaries**

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Notes** | **(Restated)\*** <br>**April 1, 2023**<br>| **(Restated)\*** <br>**March 31, 2024**<br>| **March 31, 2025** |
| **Assets:** |  |  |  |  |
| Current assets: |  |  |  |  |
| Cash and cash equivalents | 41124 | ¥7,697 | ¥10,837 | ¥8,584 |
| Cash segregated as deposits | 41224 | 40936 | 59256 | 51655 |
| Crypto assets held | 41325 | 18969 | 44207 | 44680 |
| Customer accounts receivable | 41424 | 439 | 719 | 1086 |
| Other financial assets | 41524 | 668 | 37 | 62 |
| Other current assets | 22 | 610 | 377 | 1035 |
| **Total current assets** |  | 69319 | 115433 | 107102 |
| Noncurrent assets: |  |  |  |  |
| Property and equipment | 1618 | 644 | 1973 | 1909 |
| Intangible assets | 17 | 601 | 788 | 2401 |
| Crypto asset held | 1325 | 43 |  | 43 |
| Other financial assets | 41524 | 579 | 614 | 433 |
| Deferred tax assets | 19 | 739 | 353 | 386 |
| Other non-current assets |  | 53 | 28 |  |
| **Total non-current assets** |  | 2659 | 3756 | 5172 |
| **Total assets** |  | 71978 | 119189 | 112274 |
| **Liabilities and Equity:** |  |  |  |  |
| **Liabilities:** |  |  |  |  |
| Current liabilities: |  |  |  |  |
| Deposits received | 1224 | 41058 | 59276 | 50911 |
| Crypto asset borrowings | 42025 | 18756 | 44020 | 44479 |
| Other financial liabilities | 41821 | 1289 | 1206 | 2826 |
| Provisions | 23 |  | 120 |  |
| Income taxes payable |  | 1 | 486 | 799 |
| Excise tax payable |  |  |  | 303 |
| Other current liabilities | 22 | 80 | 360 | 536 |
| **Total current liabilities** |  | 61184 | 105468 | 99854 |
| Non-current liabilities: |  |  |  |  |
| Other financial liabilities | 41821 | 92 | 1277 | 901 |
| Warrant liability |  |  |  | 410 |
| Provisions | 23 | 225 |  | 340 |
| **Total non-current liabilities** |  | 317 | 1277 | 1651 |
| **Total Liabilities** |  | 61501 | 106745 | 101505 |
| **Equity:** |  |  |  |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Ordinary Shares | 27 | 196 | 196 | 213 |
| Capital surplus | 27 | 668 | 668 | 13317 |
| Treasury Shares | 27 |  |  | (4) |
| Retained earnings (accumulated deficit) | 27 | 9613 | 11580 | (2770) |
| Foreign currency translation adjustment | 27 |  |  | 13 |
| **Total equity** |  | 10477 | 12444 | 10769 |
| **Total liabilities and equity** |  | ¥71,978 | ¥119,189 | ¥112,274 |

---

\* The comparative information is restated due to change in accounting policy. See <u>[Note 2 (5) "Changes in](#ice4c7302898b49b3925264c51aaf6c88_481)</u>

<u>[accounting policies"](#ice4c7302898b49b3925264c51aaf6c88_481)</u>

The accompanying notes are an integral part of these consolidated financial statements.

**COINCHECK GROUP N.V. and its subsidiaries**

**CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Notes** | **Ordinary** <br>**shares**<br>| **Common** <br>**stock**<br>| **Capital** <br>**surplus**<br>| **Treasury** <br>**stock**<br>| **Retained** <br>**earnings**<br>| **Foreign** <br>**currency** <br>**translation** <br>**adjustment**<br>| **Total** <br>**equity**<br>|
| **Balance as of April 1, 2022** |  | ¥— | ¥386 | ¥478 | ¥— | ¥15,172 | ¥— | ¥16,036 |
| Effect of reverse recapitalization |  | 196 | (386) | 190 |  |  |  |  |
| **Balance as of April 1, 2022, recasted** |  | 196 |  | 668 |  | 15172 |  | 16036 |
| Cash dividends |  |  |  |  |  | (5000) |  | (5000) |
| Net loss for the period |  |  |  |  |  | (559) |  | (559) |
| **Balance as of March 31, 2023** |  | ¥196 | ¥— | ¥668 | ¥— | ¥9,613 |  | ¥10,477 |
| **Balance as of April 1, 2023** |  | ¥— | ¥386 | ¥478 | ¥— | ¥9,613 |  | ¥10,477 |
| Effect of reverse recapitalization | 6, 27 | 196 | (386) | 190 |  |  |  |  |
| **Balance as of April 1, 2023, recasted** |  | 196 |  | 668 |  | 9613 |  | 10477 |
| Net profit for the period |  |  |  |  |  | 1967 |  | 1967 |
| **Balance as of March 31, 2024** |  | ¥196 | ¥— | ¥668 | ¥— | ¥11,580 |  | ¥12,444 |
| **Balance as of April 1, 2024** |  |  | 386 | 478 |  | 11580 |  | 12444 |
| Effect of reverse recapitalization | 6, 27 | 196 | (386) | 190 |  |  |  |  |
| **Balance as of April 1, 2024, recasted** |  | 196 |  | 668 |  | 11580 |  | 12444 |
| Issuance of shares in reverse <br>recapitalization, net<br>| 6, 27 | 15 |  | 11372 | (4) |  |  | 11383 |
| Issuance of new shares | 6 | 2 |  | 1075 |  |  |  | 1077 |
| Foreign currency translation adjustment in <br>foreign operations<br>|  |  |  |  |  |  | 13 | 13 |
| Proceeds received from non-redemption <br>agreement<br>| 6, 27 |  |  | 202 |  |  |  | 202 |
| Net loss for the period |  |  |  |  |  | (14350) |  | (14350) |
| **Balance as of March 31, 2025** |  | ¥213 | ¥— | ¥13,317 | ¥(4) | ¥(2770) | 13 | ¥10,769 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**COINCHECK GROUP N.V. and its subsidiaries**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **Notes** | **2023** | **2024** | **2025** |
| **Cash flows from operating activities:** |  |  |  |  |
| Profit (loss) before income taxes |  | ¥(846) | ¥2,840 | ¥(13359) |
| Depreciation and amortization | 81617 | 483 | 679 | 727 |
| Listing expense |  |  |  | 13714 |
| Impairment loss of crypto asset held (non-current assets) | 913 | 69 |  |  |
| Impairment loss of other assets (non-current assets) | 9 |  |  | 13 |
| Net loss on sale or disposal of property and equipment |  | 0 | 14 | 3 |
| Net loss on sale or disposal of intangible assets | 917 | 37 | 39 | 35 |
| Net gain on sale of crypto asset held (non-current assets) | 9 | (16) | (123) |  |
| Net gain on sale of other financial assets (non-current assets) |  |  |  | (11) |
| Gain on sale of business | 9 |  | (300) |  |
| Change in fair value of warrant liability |  |  |  | (1435) |
| (Increase) decrease in cash segregated as deposits |  | 14552 | (18320) | 7601 |
| (Increase) decrease in crypto assets held (current assets) |  | 15115 | (25093) | (495) |
| (Increase) decrease in customer accounts receivable |  | 151 | (280) | (367) |
| (Increase) decrease in other financial assets (current assets) |  | (651) | 631 | (22) |
| (Increase) decrease in other current assets |  | 447 | 233 | (613) |
| Decrease in crypto asset held (non-current assets) |  | 215 |  |  |
| Decrease in other financial assets (non-current assets) |  |  |  | 155 |
| Increase (decrease) in deposits received |  | (15287) | 18218 | (8365) |
| Increase (decrease) in crypto asset borrowings |  | (15270) | 25264 | 459 |
| Increase (decrease) in other financial liabilities |  | (12) | (230) | 573 |
| Increase (decrease) in other current liabilities |  | (572) | 299 | 159 |
| Other, net |  | 5 | 32 | 64 |
| **Cash provided by (used in) operating activities** |  | (1580) | 3903 | (1164) |
| Interest income received |  | 0 | 5 | 2 |
| Interest expenses paid | 31 | (3) | (5) | (31) |
| Income taxes paid |  | (2220) | (1) | (722) |
| **Net cash provided by (used in) operating activities** |  | (3803) | 3902 | (1915) |
| **Cash flows from investing activities** |  |  |  |  |
| Purchase of property and equipment |  | (93) | (308) | (176) |
| Proceeds from sale of property and equipment |  |  | 6 | 0 |
| Expenditure on internally generated intangible assets |  | (298) | (380) | (524) |
| Proceeds from refund of guarantee deposits |  |  | 155 | 33 |
| Purchase of crypto assets held (non-current assets) |  | (16) |  |  |
| Proceeds from sale of crypto assets held (non-current) |  | 17 | 22 |  |
| Purchase of other financial assets (non-current assets) |  |  | (10) |  |
| Payments for guarantee deposits |  | (225) | (192) |  |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Purchase of other non-current assets |  | (53) | (9) |  |
| Acquisition of subsidiaries, net of cash acquired |  |  |  | (236) |
| Sale of shares of subsidiary, net of cash divested |  | (81) |  |  |
| Sale of non-major line of business, net of cash divested | 9 |  | 281 |  |
| Other, net |  | 0 |  |  |
| **Net cash used in investing activities** |  | (749) | (435) | (903) |
| **Cash flows from financing activities** |  |  |  |  |
| Proceeds from short-term loans payable | 2131 | 1800 | 1200 | 1800 |
| Repayments of short-term loans payable | 2131 | (2000) | (1200) | (1800) |
| Repayments of long-term loans | 2131 | 0 |  |  |
| Proceeds received from non-redemption agreement | 6 |  |  | 202 |
| Proceeds from Reverse Recapitalization, net of equity <br>distribution based on Non-Redemption Agreement<br>| 6 |  |  | 205 |
| Proceeds from loan from related party | 212931 | 3000 |  | 8508 |
| Repayments of loan from related party | 212931 | (3000) |  | (7887) |
| Repayments of lease obligations | 2131 | (255) | (327) | (463) |
| Cash dividends paid | 27 | (5000) |  |  |
| **Net cash provided by (used in) financing activities** |  | (5455) | (327) | 565 |
| Effect of exchange rate change on cash and cash equivalents |  |  |  | 0 |
| **Net increase (decrease) in cash and cash equivalents** |  | (10007) | 3140 | (2253) |
| Cash and cash equivalents at the beginning of year | 11 | 17704 | 7697 | 10837 |
| **Cash and cash equivalents at the end of year** | 11 | ¥7,697 | ¥10,837 | ¥8,584 |

---

The accompanying notes are an integral part of these consolidated financial statements.

**COINCHECK GROUP N.V. and its subsidiaries**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**1. Reporting Entity**

Coincheck Group N.V. ("Coincheck Parent") is a Dutch public limited liability company (naamloze vennootschap)

which was originally formed by Monex Group, Inc. ("Monex") as Coincheck Group B.V., a Dutch private limited

liability company (besloten vennootschap met beperkte aansprakelijkheid) to become a holding company of

Coincheck, Inc., a Japanese joint stock company (kabushiki kaisha) ("Coincheck"). Coincheck Parent was formed

by Monex to facilitate the public listing and additional capitalization of Coincheck and converted immediately prior

to the Reverse Recapitalization (as further described in <u>[Note 6 (1), the "Reverse Recapitalization"](#ice4c7302898b49b3925264c51aaf6c88_393)</u>) into a Dutch

public limited liability company (naamloze vennootschap) and was renamed Coincheck Group N.V. The

consolidated financial statements consist of Coincheck Parent and its subsidiaries (together referred to as the

"Company.") The Company primarily engages in providing end-to-end crypto asset exchange services by offering

its customers multi-cryptocurrency marketplace and exchange platforms (the "Marketplace platform" and the

"Exchange platform," respectively) with a deep pool of liquidity for trading crypto assets through its user-friendly

applications.

Coincheck Parent became publicly traded on Nasdaq on December 11, 2024 as a result of the business combination

among Thunder Bridge Capital Partners IV, Inc., a Delaware corporation ("Thunder Bridge"), Coincheck Parent,

M1 Co G.K. ("M1 GK"), a Japanese limited liability company (godo kaisha) and a wholly owned subsidiary of

Coincheck Parent, Coincheck Merger Sub, Inc. ("Merger Sub"), a Delaware corporation and a wholly-owned

subsidiary of Coincheck Parent, and Coincheck (the "Business Combination") pursuant to the Business Combination

Agreement, dated as of March 22, 2022, as amended from time to time, by and among such parties (the "Business

Combination Agreement"). The Reverse Recapitalization (see <u>[Note 6 (1) "Reverse Recapitalization"](#ice4c7302898b49b3925264c51aaf6c88_393)</u>) was

effectuated in the following steps:

• On December 10, 2024, Coincheck and Coincheck Parent caused M1 GK to implement a share exchange

(kabushiki koukan) under and in accordance with the applicable provisions of the Companies Act of Japan,

pursuant to which the ordinary shares of Coincheck were exchanged for ordinary shares of Coincheck

Parent ("Ordinary Shares") (the "Share Exchange").

• The effect of the Share Exchange was that, among other things, Coincheck shareholders became holders of

the Ordinary Shares, and Coincheck became a direct, wholly owned subsidiary of M1 GK and an indirect

wholly-owned subsidiary of Coincheck Parent.

• Following the Share Exchange, Merger Sub was merged with and into Thunder Bridge (the "Merger"),

following which the separate corporate existence of Merger Sub ceased and Thunder Bridge continued as

the surviving corporation and became a wholly-owned subsidiary of Coincheck Parent.

• As a result of the Merger: (a) each Thunder Bridge common share issued and outstanding immediately

prior to the Merger was exchanged for the right to receive one Ordinary Share; and (b) each Thunder

Bridge warrant that was outstanding immediately prior to the Merger (a "Thunder Bridge Warrant") was

automatically and irrevocably modified, pursuant to and in accordance with the Warrant Agreement, dated

June 29, 2021, by and among Thunder Bridge and Continental Stock Transfer & Trust Company, as

amended by the Warrant Assumption and Amendment Agreement, dated as of December 10, 2024, by and

among Thunder Bridge, Coincheck Parent and Continental Stock Transfer & Trust Company (the "Warrant

Agreement"), to provide that, in lieu of the amount of Thunder Bridge common shares that a holder of a

Thunder Bridge Warrant would have been entitled to acquire if the Thunder Bridge Warrant was exercised

prior to the Merger, the holder thereof was now entitled to acquire the same amount of Ordinary Shares.

The transaction was unanimously approved by Thunder Bridge's Board of Directors and was approved at the special

meeting of Thunder Bridge's stockholders held on December 5, 2024 (the "Special Meeting"). Thunder Bridge's

stockholders also voted to approve all other proposals presented at the Special Meeting. As a result of the Business

**COINCHECK GROUP N.V. and its subsidiaries**

Combination, Thunder Bridge, M1 GK and Coincheck became wholly-owned subsidiaries of Coincheck Parent. On

December 11, 2024, Ordinary Shares and public warrants of Coincheck Parent commenced trading on the Nasdaq

Stock Market ("Nasdaq") under the symbols "CNCK" and "CNCKW," respectively.

As described in <u>[Note 6 (1) "Reverse Recapitalization,"](#ice4c7302898b49b3925264c51aaf6c88_393)</u> the Reverse Recapitalization has been accounted for with

Thunder Bridge being identified as the "acquired" entity for financial reporting purposes. Accordingly, the Reverse

Recapitalization has been accounted for as the equivalent of Coincheck issuing shares for the net assets of Thunder

Bridge, accompanied by a recapitalization. Therefore, these consolidated financial statements have been presented as

a continuation of Coincheck. Accordingly, the prior-year figures as of March 31, 2024, and the year ended

March 31, 2024, represent the results of Coincheck, including the effects of the recast of the share capital and

earnings per share calculations.

On January 31, 2025, Thunder Bridge changed its name to CCG Administrative Services, Inc. ("CCG AS")

Next Finance Tech Co., Ltd and its subsidiaries ("Next Finance") were acquired by the Company in March 2025.

See <u>[Note 6 (2) "Acquisition of Next Finance."](#ice4c7302898b49b3925264c51aaf6c88_393)</u>

**2. Basis of preparation of consolidated financial statements**

**(1)Compliance with IFRS Accounting Standards**

The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards

("IFRS") as issued by the International Accounting Standards Board (the "IASB").

**(2)Approval of the consolidated financial statements**

The consolidated financial statements were authorized for issuance on July 30, 2025 by the Chief Financial

Officer ("CFO"), Jason Sandberg.

**(3)Basis of measurement**

The consolidated financial statements have been prepared on a historical cost basis, except for certain assets and

liabilities recorded at fair value mainly including crypto assets held (current assets), crypto asset borrowings and

warrant liabilities.

**(4)Use of judgements, estimates, and assumptions**

The preparation of consolidated financial statements in accordance with IFRS requires management to make

certain judgments, estimates, and assumptions that affect the application of the Company's accounting policies

and the reported amounts of assets, liabilities, revenues and expenses, as well as the disclosure of contingent

assets and liabilities. Actual results could differ from these estimates.

These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting

estimates are recognized in the period in which the estimates are revised and in any future periods affected.

(a)Significant judgements

Information about judgments that are made in the process of applying accounting policies and that have

significant effect on the amounts reported in the consolidated financial statements is included in the Notes

of (i) Transaction revenue (<u>[Note 3 (13) "Revenue"](#ice4c7302898b49b3925264c51aaf6c88_459)</u>), (ii) Crypto assets held (<u>[Note 13 "Crypto assets held"](#ice4c7302898b49b3925264c51aaf6c88_298)</u>),

and (iii) Crypto asset borrowings due to customers (<u>[Note 20 "Crypto asset borrowings"](#ice4c7302898b49b3925264c51aaf6c88_248)</u>).

**COINCHECK GROUP N.V. and its subsidiaries**

**(5)Changes in accounting policies**

On January 30, 2025, the Securities and Exchange Commission (the "SEC") issued Staff Accounting Bulletin

("SAB") No. 122 ("SAB 122"). SAB 122 rescinds the interpretive guidance in SAB No. 121, *Accounting for* 

*Obligations to Safeguard Crypto-Assets an Entity Holds for Platform Users* ("SAB 121"). The Company

historically implemented SAB121 and recognized the safeguard liabilities and the corresponding safeguard

assets in the consolidated statements of financial position. The Company has adopted SAB122 as of March 31,

2025 on a retrospective basis. As a result of the adoption of SAB122, and because the Company does not have

control over the crypto assets held on behalf of customers, the Company no longer recognizes the safeguard

liabilities and the corresponding safeguard assets, and related deferred tax asset and liability, previously

recognized in the consolidated statements of financial position and SAB122 requires retrospective application to

all prior periods presented in the consolidated financial statements. SAB 122 indicates that an entity is to apply

International Accounting Standards ("IAS") 37, *Provisions, Contingent Liabilities and Contingent Asset*s, to

determine whether an entity has a liability related to the risk of loss from an obligation to safeguard crypto

assets for customers.

As a result of the adoption of SAB 122, the Company derecognized safeguard liabilities of ¥288,639 million

and ¥649,211 million along with corresponding assets of ¥288,639 million and ¥649,211 million associated

with customers' crypto assets, and related deferred tax asset and liability of ¥88,381 million and

¥198,788 million, in the consolidated statements of financial position as of April 1, 2023 and March 31, 2024,

respectively. There were no impacts on the consolidated statements of profit or loss and other comprehensive

income, changes in equity and cash flows for the periods presented.

**(6)Functional currency and presentation currency**

The consolidated financial statements are presented in Japanese yen, which is the functional currency of

Coincheck. The functional currencies of the entities within the Companyinclude JPY, USD, and EUR. All

amounts have been rounded to the nearest million Japanese yen, unless otherwise indicated.

**3. Material accounting policies**

The Company has applied the following accounting policies to all periods presented in these consolidated financial

statements, except as otherwise indicated.

**(1)Basis for consolidation**

(a)Reverse acquisitions

A "reverse acquisition" is a merger of entities in which, for accounting purposes, the legal acquirer is

identified as the accounting acquiree and the legal acquiree is identified as the accounting acquirer. The

identification of the accounting acquirer and acquiree is based on the principles of business combination

accounting. If the accounting acquiree is identified as a business, business combination accounting is

applied. However, if the accounting acquiree does not meet the definition of a business, share-based

payment accounting is applied for share-based consideration. Consolidated financial statements prepared

following a reverse acquisition are issued under the name of the legal parent (accounting acquiree) but

described in the notes as a continuation of the financial statements of the legal subsidiary

(accounting acquirer), with a retroactive adjustment of the accounting acquirer's legal capital to reflect the

legal capital of the legal parent (the accounting acquiree). Comparative information presented in those

consolidated financial statements also is retroactively adjusted to reflect the legal capital of the legal parent

(accounting acquiree).

**COINCHECK GROUP N.V. and its subsidiaries**

(b)Subsidiaries

Subsidiaries are entities controlled by the Company. The Company controls an entity when it is exposed to,

or has rights to, variable returns from its involvement with the entity and has the ability to affect those

returns through its power over the entity. The financial statements of subsidiaries are included in the

consolidated financial statements from the date that control commences until the date that control ceases.

The accounting policies of subsidiaries have been changed when necessary to align them with the policies

adopted by the Company. Losses applicable to the noncontrolling interest ("NCI") in a subsidiary are

allocated to the NCI even if doing so causes the NCI to have a deficit balance.

(c)Acquisitions from entities under common control

Business combinations arising from transfers of interests in entities that are under the control of the

shareholder that controls the Company are accounted for as if the acquisition had occurred at the beginning

of the earliest comparative year presented or, if later, at the date that common control was established; for

this purpose, comparatives are restated. The assets and liabilities acquired are recognized at the carrying

amounts recognized previously in the Company controlling shareholder's consolidated financial statements.

The components of equity of the acquired entities are added to the same components within Company

equity and any gain/loss arising is recognized directly in equity.

(d)Loss of control

Upon a loss of control, the Company derecognizes the assets and liabilities of the subsidiary, any NCI, and

the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss of control

is recognized in profit or loss. If the Company retains any interest in the former subsidiary, then such

interest is measured at fair value at the date that control is lost.

(e)Transactions eliminated in consolidation

Intragroup balances and transactions, and any unrealized income or expenses arising from intragroup

transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising

from transactions with equity-accounted investees are eliminated against the investment to the extent of the

Company's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains,

but only to the extent that there is no evidence of impairment.

**(2)Financial instruments**

(a)Recognition of financial assets and financial liabilities

Transactions of financial assets and financial liabilities are recognized when the Company becomes a party

to the contractual provisions of the financial instruments.

(b)Classification and measurement of financial assets

Financial assets are classified into the following categories on initial recognition:

(i)Financial assets measured at amortized cost

Financial assets shall be measured at amortized cost if both of the following conditions are met:

• The financial assets are held within a business model whose objective is to hold financial assets in order to

collect contractual cash flows and

• The contractual terms of the financial asset give rise on specified dates to cash flows that are solely

payments of principal and interest on the principal amount outstanding.

**COINCHECK GROUP N.V. and its subsidiaries**

Financial assets measured at amortized cost are initially recognized at its fair value, plus transaction

costs directly attributable to the acquisition. Subsequent to the initial recognition, they are measured at

amortized cost using the effective interest method.

(ii)Financial assets measured at fair value through profit or loss ("FVTPL")

Financial assets other than financial assets measured at amortized cost are classified as financial assets

measured at FVTPL.

Financial assets measured at FVTPL are initially recognized at fair value and attributable transaction

costs are recognized as profit or loss when incurred. Subsequent to the initial recognition, they are

measured at fair value, and gains and losses arising from changes in fair value are recognized as profit

or loss.

(c)Impairment of financial assets

For financial assets measured at amortized cost, an allowance for expected credit losses is recognized. At

the end of each reporting period, the Company assesses whether the credit risk on each financial asset has

increased significantly since initial recognition. If the credit risk has not increased significantly since initial

recognition, the Company recognizes the loss allowance at an amount equal to the 12-month expected

credit losses. Meanwhile, if the credit risk has increased significantly since initial recognition, the Company

recognizes the loss allowance at an amount equal to the lifetime expected credit losses.

There is a rebuttable presumption that the credit risk on a financial asset has increased significantly since

initial recognition when contractual payments are more than 30 days past due. Financial assets, all or part of

which cannot be collected or are presumed difficult to collect, or financial assets that are more than 90 days

past due, are defined to be in default.

Credit losses are measured as the present value of the difference between all contractual cash flows that are

due to the Company in accordance with the contract and all the cash flows that the Company expects to

receive, discounted at the original effective interest rate, and expected credit loss is the weighted average of

the credit losses with the probability of the default occurring used for the weighting.

The Company directly reduces the gross carrying amount of a financial asset when it has no reasonable

expectations of recovering the contractual cash flows on a financial asset in its entirety or a portion thereof.

For financial assets measured at amortized cost, expected credit loss is recognized as loss allowance. The

loss allowance and the reversal of a loss allowance are recognized in profit or loss as an impairment gain or

loss.

(d)Classification and measurement of financial liabilities

(i)Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost are initially recognized at fair value, minus directly

attributable transaction costs. Subsequent to the initial recognition, they are measured at amortized cost

using the effective interest method. Loans payables and other payables are included in this category.

(ii)Financial liabilities measured at FVTPL

Financial liabilities measured at FVTPL are initially recognized at fair value and attributable

transaction costs are recognized as profit or loss when incurred. Subsequent to the initial recognition,

they are measured at fair value, and gains and losses arising from changes in fair value are recognized

as profit or loss. Warrant liabilities and derivative liabilities are included in this category.

**COINCHECK GROUP N.V. and its subsidiaries**

(e)Derecognition of financial assets and financial liabilities

The Company derecognizes a financial asset when (i) the contractual rights to the cash flows from the

financial asset expire or (ii) it transfers the rights to receive the contractual cash flows in a transaction in

which substantially all of the risks and rewards of ownership of the financial asset are transferred. The

Company derecognizes a financial liability when its contractual obligations are discharged or canceled or

expired.

(f)Fair value measurement

The fair value of financial assets and financial liabilities is the price that would be received to sell an asset

or paid to transfer a liability in an orderly transaction between market participants on the measurement date.

(g)Cash and cash equivalents

Cash and cash equivalents in the consolidated statements of financial position and consolidated statements

of cash flows comprise cash and short-term, highly-liquid investments that are readily convertible to a

known amount with an insignificant risk of change in value.

(h)Cash segregated as deposits

Cash segregated as deposits includes cash deposited in trust accounts on which the Company earns interest,

and is reported as such in the consolidated statements of financial position.

(i)Customer accounts receivable

Customer accounts receivable is mainly due from credit card companies, which are payment processors, for

settlement of funds from customers.

Customer accounts receivable is recognized initially at transaction price. The Company holds the customer

accounts receivable with the objective of collecting the contractual cash flows and therefore measures them

subsequently at amortized cost.

**(3)Crypto assets**

(a)Crypto assets held

Crypto assets held (current assets) consist of cryptocurrencies for facilitating customer transactions and are

recognized as inventories. Cryptocurrencies for facilitating customer transactions are recognized at

acquisition price at initial recognition, and at fair value, less costs to sell subsequent to the initial

recognition since these are held with the purpose of acquiring broker-traders' margin. Subsequent to the

initial recognition, changes in fair value are recognized in profit or loss in the period in which the change

occurs. The Company uses major third-party exchanges with high volume and liquidity to measure the fair

value of its cryptocurrency. The exchange selected by the Company for each cryptocurrency offers the

highest volume and liquidity of trades (i.e., principal market). If a principal market does not exist (e.g.,

when the volume and liquidity of trades are similar between two or more different markets), the Company

uses the most advantageous market. The most advantageous market offers high volume, liquidity of trades,

and the most favorable spread, maximizing the amount that would be received to sell the asset, net of

transaction costs, or minimizing the amount that would be paid to transfer the liability. The fair value is

measured by using a midmarket pricing of the principal market or the most advantageous market.

Substantially all of crypto assets held (current assets)correspond to crypto assets borrowed from or

deposited by customers under the Coincheck Lending program.

**COINCHECK GROUP N.V. and its subsidiaries**

(b)Crypto asset borrowing

Under the Coincheck Lending program, when the Company enters into borrowing agreements with

customers, the Company obtains control over the crypto assets deposited by those customers, regardless of

whether the Company has actually borrowed the crypto assets or the crypto assets remain deposited with

the Company. These crypto assets are recognized as inventories under "Crypto assets held" in the

consolidated statement of financial position and the Company's corresponding obligation to return these

crypto assets to customers is recognized as a liability under "Crypto asset borrowings." Crypto asset

borrowings are initially measured at the fair value of the subject crypto assets as the Company incurs an

obligation to return the same type and the same amount of crypto assets deposited by customers under the

program. Subsequent to initial recognition, changes in fair value of crypto asset borrowings are recognized

in profit or loss in the period in which the changes occur because the fair value of the crypto assets fairly

demonstrates the obligation to return the crypto assets deposited by customers under the program. In

addition, the borrowing fee paid to the customer, which is in the same denomination as the borrowed asset,

is calculated by multiplying the quantity of the borrowed crypto assets by the fee rate (calculated as a per

annum percentage of the borrowed amount) agreed with the customer and recognized as an expense over

the borrowing period.

**(4)Property and equipment**

(a)Recognition and measurement

Property and equipment are measured using the cost model and are reported at the acquisition cost, less

accumulated depreciation and accumulated impairment losses. Acquisition costs include costs directly

related to the acquisition of assets and costs for dismantling and removing.

(b)Depreciation

Depreciation is calculated based on the depreciable amount. The depreciable amount is calculated as the

acquisition cost of an asset, less its residual value.

Property and equipment are depreciated over the estimated useful life of each part of a property item, and

depreciation is recognized in profit or loss applying the straight-line method. The straight-line method is

applied because it is considered to most closely reflect the expected pattern of consumption of the future

economic benefits embodied in the asset.

The estimated useful lives of major property and equipment are as follows:

Leasehold improvements: 1 year to 5 years

Equipment and fixtures: 2 years to 14 years

Leasehold improvements are depreciated by the straight-line method over the term of the lease (including

reasonably certain options periods) or the estimated useful life of the improvements, whichever is shorter.

Depreciation methods, useful lives, and residual values are reviewed at each reporting date, and

adjustments are made when required.

**(5)Intangible assets**

(a)Goodwill and internally generated intangible assets

Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses.

**COINCHECK GROUP N.V. and its subsidiaries**

The Company recognizes software development costs as intangible assets if the development costs can be

reliably determined, implementation is technologically feasible, there is a high probability for generating

future economic benefit, and there are adequate resources to develop and use them. Subsequent to the initial

recognition, internally generated intangible assets are measured at the acquisition cost, less accumulated

amortization and accumulated impairment losses.

(b)Amortization

Amortization is based on the acquisition cost of an asset less its residual value.

Amortization of intangible assets is recognized in profit or loss applying the straight-line method over the

estimated useful life from the time when the asset is available for use.

Goodwill is not amortized.

The estimated useful lives of major intangible assets are as follows:

Internally generated intangible assets: 3 to 5 years

Amortization methods, useful lives, and residual values are reviewed at each reporting date, and

adjustments are made when required.

The Company considers the useful life of intangible assets to be indefinite only if there is no foreseeable

limit to the period over which the intangible assets are expected to generate net cash inflows for the

Company based on analysis of all relevant factors. Intangible assets with indefinite useful lives are not

amortized and are subject to impairment tests at the same time each year and when there are indications of

impairment.

**(6)Leases**

The Company assesses whether a contract is or contains a lease at the inception of the contract. The Company

recognizes a right-of-use asset and its corresponding lease liability at the lease commencement date.

A right-of-use asset is measured at cost at the commencement date. Subsequently, the Company measures a

right-of-use asset applying the cost model. A right-of-use asset is measured at cost, less any accumulated

depreciation and any accumulated impairment losses. The right-of-use asset is depreciated using the straight-

line method over the estimated useful life of the asset or the relevant lease term, whichever is shorter. The

Company determines the lease term as the sum of the noncancellable period and the periods covered by an

option to extend (or terminate) the lease term if the lessee is reasonably certain to exercise (or not exercise) the

option. The estimated useful lives of right-of-use assets are approximately 1 year to 5 years.

The Company measures a lease liability at the present value of the lease payments that are not paid at the

commencement date, discounted using the interest rate implicit in the lease or, if such rate cannot be readily

determined, the Company's incremental borrowing rate. Subsequently, the lease liability is measured by

adjusting the carrying amount to reflect interest on the lease liability and/or the lease payment. When

reassessing or modifying a lease, the Company remeasures the carrying amount of the lease liability and

accordingly adjusts the carrying amount of the related right-of-use asset.

For short-term leases and leases of low-value assets, the Company recognizes the lease payments associated

with those leases as an expense on a straight-line basis over the lease term.

**COINCHECK GROUP N.V. and its subsidiaries**

**(7)Impairment of non-financial assets**

Non-financial assets are reviewed for impairment at the end of each reporting period or if there is an indication

of impairment and whenever events or changes in circumstances indicate that the carrying amount may not be

recoverable. If any such indication exists, the asset's recoverable amount is estimated. An impairment loss is

recognized in the consolidated statements of profit or loss and other comprehensive income if the asset's

carrying amount is greater than its estimated recoverable amount. The recoverable amount is estimated as the

higher of the asset's fair value, less costs to sell and value in use.

For the purposes of conducting impairment reviews, assets are grouped into cash-generating units to which the

assets belong. Impairment testing is performed at least annually and whenever there is an indication that the

cash-generating unit containing goodwill or intangible assets with an indefinite useful life may be impaired.

An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying

amount that would have been determined, net of depreciation or amortization, if no impairment loss had been

recognized.

**(8)Warrants**

Share purchase warrants issued by Coincheck Parent are accounted for as warrant liability. The warrants are

initially recognized at fair value, and in subsequent periods measured at FVTPL with any changes in fair value

recognized in profit or loss until the warrants are exercised, redeemed, or expire.

**(9)Employee benefits**

(a)Short-term employee benefits

Short-term employee benefits, including salaries, bonuses, and paid annual leave, that are expected to be

settled wholly within 12 months after the end of the reporting periods, are expensed as the related service is

provided. A liability is recognized at the amounts expected to be paid when the liabilities are settled if the

Company has a present legal or constructive obligation to pay this amount as a result of past service

provided by employees and the obligation can be estimated reliably.

(b)Termination benefits

Termination benefits are expensed at the earlier of when the Company can no longer withdraw the offer of

those benefits and when the Company recognizes costs for a restructuring. If benefits are not expected to be

settled wholly within 12 months of the reporting date, then they are discounted to their present value.

**(10)Provisions**

Provisions are recognized when, if the Company has legal and constructive obligations because of past events, it

is probable that an outflow of resources embodying economic benefits will be required to settle those

obligations, and the amounts of those obligations can be reasonably estimated. Provisions are discounted to the

present value of the estimated future cash flows using a pretax rate that reflects the time value of money and the

risks specific to the relevant liabilities.

The unwinding of the discount is recognized in profit or loss.

**(11)Equity**

Ordinary Shares issued by Coincheck Parent are classified as equity, and the proceeds from issuance of such

shares are included in Ordinary Shares and capital surplus on the consolidated statements of financial position.

**COINCHECK GROUP N.V. and its subsidiaries**

**(12)Foreign currency translations**

(a)Foreign currency translation

Foreign currency transactions are remeasured into the functional currency of each entity within the

Company using the exchange rates at the dates of the transactions or rates that approximate the exchange

rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are

remeasured into the functional currency using the spot rates of exchange at the end of each reporting

period. Non-monetary assets and liabilities measured based on historical cost that are denominated in

foreign currencies are remeasured at the exchange rate at the date of the initial transaction. Exchange

differences arising from the remeasurement or settlement are recognized in profit or loss. Translation

differences on items whose fair value gain or loss is recognized in profit or loss are also recognized in

profit or loss.

(b)Foreign operations

The assets and liabilities of foreign operations are translated using the spot exchange rates at the end of the

reporting period, while income and expenses of foreign operations presented in profit or loss and other

comprehensive income are translated using the exchange rates at the dates of the transactions or rates that

approximate the exchange rates at the dates of the transactions.The exchange differences arising on

translation for consolidation are recognized in other comprehensive income.

**(13)Revenue**

Revenues that arise from contracts with customers are recognized applying the five-step approach of IFRS

15,*Revenue from Contracts with Customers*, as shown below.Consideration received from customers does not

include significant financing components, because the Company receives payments from its customers soon

after it fulfills its performance obligations.

Step 1: Identify the contract with a customer

Step 2:Identify the performance obligations in the contract

Step 3:Determine the transaction price

Step 4: Allocate the transaction price to the performance obligations in the contract

Step 5:Recognize revenue when (or as) the entity satisfies a performance obligation

Details of revenue and revenue recognition criteria for each of major revenue items recorded in the consolidated

statements of profit or loss and other comprehensive income are summarized as follows:

(a)Transaction revenue

Transaction revenue is mainly derived fromsales transactions with the Company's customers.The

Company's customers include parties who hold accounts and utilize the services provided on the

Company's crypto asset platforms, which include customers on the Marketplace platform, as well as cover

counterparties in sale cover transactions on the Company's and third-party exchanges. However, users that

purchase crypto assets from other users on the Company's Exchange platform but are not charged a

commission do not meet the definition of a customer under IFRS 15. When the Company trades with

customers on its Marketplace platform, the Company adds a bid-ask spread to the prices of the Company's

cover transactions. The spread is set/revised by the Company in a range of 0.1% to 5.0% for each

cryptocurrency based on prevailing market conditions, including competitors' offers. The Company has the

discretion to add a spread that might be higher than the above-mentioned range in instances where there are

**COINCHECK GROUP N.V. and its subsidiaries**

sudden market movements and shortage of liquidity in the market to ensure the execution of the

transactions with customers. Furthermore, the spreads are applied to all transactions with customers

regardless of whether the positions made by those transactions are offset before the execution of cover

transactions.

The Company has a performance obligation in its contracts with customers to transfer control of the

cryptocurrencies to the customer and to deliver cryptocurrencies for transactions with customers. Contracts

are defined at the transaction level and revenue is recognized at the point of time when this performance

obligation is fulfilled in accordance with IFRS 15. When the Company receives cryptocurrencies as

noncash consideration, the Company measures received cryptocurrencies at fair value at the time of

delivery.

The Company determined that it acts as a principal in such transactions as it controls (i.e., has the ability to

direct the use of, and obtain substantially all of the remaining benefits from) the cryptocurrencies it holds as

inventory before such cryptocurrencies are transferred to the Company's customers. Specifically, the

Company has the ability to decide whether to hold the crypto assets to balance the Company's inventory

level or sell the crypto assets to customers or cover counterparties. The Company also has the ability to

decide to whom the crypto assets will be sold and prevent others from directing the use of the crypto assets.

The Company is also entitled to substantially all of the economic benefits of the crypto assets through sales

of the crypto assets. Additionally, the Company is primarily responsible for fulfilling the commitment to

provide cryptocurrencies to customers on its Marketplace platform pursuant to its terms of service, has

inventory risk as the Company has no right to return unsold cryptocurrencies to customers or cover

counterparties from which it has purchased such cryptocurrencies, and sets the price of the cryptocurrencies

it sells on its Marketplace platform.

(b)Commission received

Commission received primarily includes revenue from remittance fees, deposit and withdrawal and transfer

fees, commissions that are received from the issuer and the applicants in the IEO business, commissions

that arise from transactions on the Coincheck NFT Marketplace, and commissions that arise from

transactions on the Exchange platform.

In accordance with IFRS 15, remittance fees are recognized as revenue when the performance obligation

that arises from a customer order to remit cryptocurrencies is satisfied.

Deposit and withdrawal fees are recognized as revenue when the customer's order to deposit or to withdraw

cryptocurrencies are fulfilled, resulting in the performance obligation being satisfied.

The IEO business recognizes commission revenue when the issuer's tokens are listed on its Marketplace

platform. The Company acts as a principal as it holds the primary responsibility to the issuer. Commissions

received from the applicants in the IEO business are recognized as revenue when the obligations to deliver

the issuer's tokens to the applicants are performed. The Company acts as an agent to broker a transaction of

orders participating in the issuer's IEO and delivers tokens on behalf of the issuer.

Commissions that arise from transactions on the Coincheck NFT Marketplace are recognized as revenue

when the performance obligation of brokering transactions between customers is fulfilled. The Company

acts as an agent since the performance obligation is to arrange to transfer NFTs of the selling party to the

other party.

Commissions that arise from transactions on the Exchange platform are recognized as revenue when the

performance obligation of brokering transactions between customers is fulfilled. The Company acts as an

intermediary between customers for orders to buy or sell crypto assets and receives a brokerage fee. The

Company does not control the underlying crypto assets before these are transferred to other customers. The

**COINCHECK GROUP N.V. and its subsidiaries**

Company acts as an agent to broker a transaction of orders to transfer crypto assets of the selling party to

the other party.

When the Company receives cryptocurrencies for commissions as noncash consideration, the Company

measures received cryptocurrencies at fair value at the time the transaction is completed.

(c)Other revenue

Other revenue is mainly derived from sales of NFTs owned by the Company on the Coincheck NFT

Marketplace. In accordance with IFRS 15, sales revenue of NFTs is recognized as revenue when the

performance obligation of delivering the NFTs to the customer is fulfilled. The Company acts as a principal

since the Company has the ability to decide the price and is responsible for inventory risk.

**(14)Income taxes**

Income tax expenses include current taxes and deferred taxes. They are recognized in profit or loss except to the

extent that they relate to a business combination, or items recognized directly in equity.

Current taxes are the estimated taxes to be paid or refunded relating to taxable income or losses for the reporting

period by applying the enacted tax rate or the substantively enacted tax rate at the end of the reporting period,

adjusted for estimated taxes to be paid or refunded for prior years.

Deferred tax assets and liabilities are recognized with respect to the temporary difference between the carrying

amount and the tax bases of assets and liabilities. Deferred tax assets and liabilities are not recognized with

respect to the temporary differences arising from the initial recognition of assets and liabilities in transactions

(other than business combinations) that affect neither the accounting profit nor the taxable profit (tax loss) and

does not give rise to equal taxable and deductible temporary differences and the temporary differences arising

from investments in subsidiaries, if the Company can control the timing of the reversal of the temporary

difference and it is probable that the temporary difference will not be reversed in the foreseeable future.

Deferred tax assets and liabilities are calculated using the tax rate that is expected to be applied at the time when

the temporary difference is reversed based on tax laws that are enacted or substantively enacted by the end of

the reporting period. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be

available against which the deductible differences can be utilized. Deferred tax assets are reassessed at the end

of each reporting period and recognized to the extent that it is probable that future taxable profit will allow the

deferred tax asset to be recovered.

Deferred tax assets and liabilities are set off when the Company has a legally enforceable right to set off

deferred tax assets against deferred tax liabilities, and the deferred tax assets and deferred tax liabilities relate to

corporate income taxes levied by the same taxation authority on either the same taxable entity or different

taxable entity, which intends to settle the deferred tax assets and liabilities on a net basis or to realize the assets

and liabilities simultaneously.

**(15)Earnings per share**

Basic earnings per share are calculated as profit attributable to owners of the Company, divided by the

weighted-average number of common shares outstanding during the reporting period.

Diluted earnings per share (earnings per share after adjustment for potential shares) are calculated after

adjustment for the dilutive effects of all potential common shares.

**(16)New or amended accounting standards and interpretations issued but not yet applied**

The new or amended accounting standards and interpretations issued but not yet applied for the year ended

March 31, 2025 are as follows. The amendments of IAS 21 and IFRS 19 are not expected to affect the

**COINCHECK GROUP N.V. and its subsidiaries**

Company's consolidatedfinancial statements. The Company is evaluating the impact of applying other new or

amended accounting standards.

---

| | | | | |
|:---|:---|:---|:---|:---|
| Standards | Name of Standards | Effective date (The year <br>beginning on or after)<br>| Adoption periods of the <br>Company (For the year <br>ending)<br>| Content |
| IAS 21 | The Effects of <br>Changes in Foreign <br>Exchange Rates<br>| January 1, 2025 | March 31, 2026 | Amendments to <br>accounting for lack of <br>exchangeability<br>|
| IFRS 7 | Financial <br>Instruments: <br>Disclosures<br>| January 1, 2026 | March 31, 2027 | Amendments to the <br>classification and <br>measurement of <br>financial instruments |
| IFRS 9 | Financial <br>Instruments<br>| January 1, 2026 | March 31, 2027 | Amendments to the <br>classification and <br>measurement of <br>financial instruments |
| IFRS 7 | Financial <br>Instruments: <br>Disclosures<br>| January 1, 2026 | March 31, 2027 | Amendment to gain or <br>loss on derecognition on <br>IFRS 7; Amendments to <br>introduction, disclosure <br>of deferred difference <br>between fair value and <br>transaction price, and <br>credit risk disclosures <br>on the Implementation <br>Guidance for IFRS 7<br>|
| IFRS 9 | Financial <br>Instruments<br>| January 1, 2026 | March 31, 2027 | Amendment to lessee <br>derecognition of lease <br>liabilities and <br>transaction price<br>|
| IFRS 10 | Consolidated <br>Financial <br>Statements<br>| January 1, 2026 | March 31, 2027 | Amendment to <br>determination of a 'de <br>facto agent'<br>|
| IAS 7 | Statement of Cash <br>Flows<br>| January 1, 2026 | March 31, 2027 | Replacement of the term <br>'cost method' to 'at <br>cost'<br>|
| IFRS 7 | Financial <br>Instruments: <br>Disclosures<br>| January 1, 2026 | March 31, 2027 | Amendment to contracts <br>referencing Nature-<br>dependent electricity |
| IFRS 9 | Financial <br>Instruments<br>| January 1, 2026 | March 31, 2027 | Amendment to contracts <br>referencing Nature-<br>dependent electricity |
| IFRS 18 | Presentation and <br>Disclosure in <br>Financial <br>Statements<br>| January 1, 2027 | March 31, 2028 | Replacement of IAS 1 <br>and helping to achieve <br>comparability of the <br>financial performance of <br>similar entities<br>|

---

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | |
|:---|:---|:---|:---|:---|
| IFRS 19 | Subsidiaries <br>without Public <br>Accountability: <br>Disclosures<br>| January 1, 2027 | March 31, 2028 | Reduced disclosure <br>requirements for <br>subsidiaries without <br>public accountability<br>|
| IFRS 10 | Consolidated <br>Financial <br>Statements;<br>| Not determined | Not determined | Amendment of <br>accounting for sale or <br>contribution of assets <br>between an investor and <br>its associates or joint <br>ventures |
| IAS 28 | Investments in <br>Associates and Joint <br>Ventures<br>| Not determined | Not determined | Amendment of <br>accounting for sale or <br>contribution of assets <br>between an investor and <br>its associates or joint <br>ventures |

---

**4. Financial risk management**

The principal risks arising from cryptocurrencies and financial instruments to which the Company is exposed in the

course of its business activities include credit risk, and liquidity risk.

Set forth below is information about the impact of each risk on the Company, policies on the identification, analysis

and assessment of risk, and capital management in the Company.

**(1)Managing risks arising from cryptocurrencies and financial instruments**

To limit risks that have an impact on the Company's management within an acceptable range, risks are

appropriately identified, analyzed, and assessed, and appropriate management departments are designed to

respond to each risk.

The Company establishes rules for managing significant risks that affect operations. Those risks arising from

cryptocurrencies and financial instruments are managed in accordance with specific management policies and

management structures formulated by the head of the applicable supervisory department and approved by the

executive officer in charge of the supervisory department.

Regarding the risk management of the Company, each supervisory department manages the risk for each risk

classification. The head of each supervisory department within each business regularly reports to the risk

management department. The risk management department organizes the contents of the received reports and

the related information it has collected, and reports to the risk committee. In addition, the risk management

department drafts risk management regulations and systems, conducts various reviews, and supports monitoring

activities. Subsequently, the overall risk management status of the Company is reported and discussed at the

risk committee. Based on these discussions, the chief risk officer appointed by the CEO monitors and assesses

the development and operation of the Company's risk management framework and periodically reports to the

board of directors.

(a)Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial

instrument fails to meet its contractual obligation. Credit risk arises primarily from risks related to

customers and other counterparties.

The carrying amounts of financial assets after impairment are presented in the consolidated statements of

financial position and are the amounts of maximum exposure of the Company to financial asset credit risks.

*<u>Risks relating to customer transactions</u>*

**COINCHECK GROUP N.V. and its subsidiaries**

Spot transactions are traded within the limit of the amounts received in advance from customers. Therefore,

the Company does not take excessive credit risks with any specific customers.

The Company doesnothave significant credit risk concentration with any individual customer.

*<u>Risks relating to other counterparties</u>*

The Company's cash, cash equivalents, cash segregated as deposits, and cryptocurrencies for facilitating

customer transactionsare exposed to credit risk because they are deposited in financial institutions and/or

with cryptocurrency exchange brokers. Those financial institutions are highly credit worthy, and the

cryptocurrency exchange brokers are well-established domestic and overseas exchange brokers. Thus,

although the credit risk is concentrated in a small number of counterparties, it is considered to be limited. In

addition, customer accounts receivable is mainly due from credit card companies, which are payment

processors, for settlement of funds from customers. There is also a concentration of credit risk related to

customer accounts receivable, as the Company uses a small number of payment processors. However, since

the settlement period is short, the credit risk associated with those processors is considered to be limited.

As part of the risk management process, the Company evaluates the financial positions of financial

institutions before selecting them and, subsequently, reviews them on a periodic basis. In selecting and

dealing with cryptocurrency exchange brokers, the Company monitors the up-to-date information of such

brokers via social media and other news sources in order to be informed about any changes in their

businesses. In addition, if the Company obtains information related to such brokers' credit uncertainty, such

as a downgrade of their credit ratings, necessary measures are taken by collaborating with all divisions

concerned to avoid such risks.

The exposure to credit risk of the Company is as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2024** | **As of March 31, 2024** | **As of March 31, 2024** |
| **(In millions)** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** |
|  | **Not credit-**<br>**impaired**<br>| **Credit-**<br>**impaired**<br>| **Total** |
| Gross carrying amount |  |  |  |
| Cash and cash equivalents | ¥10,837 | ¥— | ¥10,837 |
| Cash segregated as deposits | **59256** |  | 59256 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crypto assets held (current assets)<sup>(1)</sup> | 817 |  | 817 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer accounts receivable | 719 |  | 719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets<sup>(2)</sup> | 651 | 0 | 651 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross carrying amount | 72280 | 0 | 72280 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss allowance |  | (0) | (0) |
| **Total net carrying amount** | ¥72,280 | ¥0 | ¥72,280 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** |
| **(In millions)** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** | **Impairment loss allowance measured at** <br>**lifetime expected credit losses** |
|  | **Not credit-**<br>**impaired**<br>| **Credit-**<br>**impaired**<br>| **Total** |
| Gross carrying amount |  |  |  |
| Cash and cash equivalents | ¥8,584 | ¥— | ¥8,584 |
| Cash segregated as deposits | 51655 |  | 51655 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Crypto assets held (current assets)<sup>(1)</sup> | 370 |  | 370 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Customer accounts receivable | 1086 |  | 1086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other financial assets<sup>(2)</sup> | 495 | 0 | 495 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total gross carrying amount | 62190 | 0 | 62190 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment loss allowance |  | (0) | (0) |
| **Total net carrying amount** | ¥62,190 | ¥0 | ¥62,190 |

---

____________

<sup>(1)</sup> Crypto assets held (current assets) mainly consist of crypto assets deposited with third-party exchanges.

<sup>(2)</sup> Other financial assets mainly consist of deposits and guarantee deposits as well as trade receivables. See

<u>[Note 15 "Other financial assets."](#ice4c7302898b49b3925264c51aaf6c88_278)</u>

Changes in allowance for doubtful receivables for other financial assets are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| **(In millions)** | **2024** | **2025** |
| Balance at beginning of period | ¥— | ¥0 |
| Increase | 0 | 0 |
| **Balance at end of period** | ¥0 | ¥0 |

---

(b)Liquidity risk

Liquidity risk is the risk of the Company being unable to settle obligations using cash, crypto assets held

(current assets), other financial assets, or other means.

The Company finances the funds necessary for operations by obtaining loans from financial institutions and

related parties. Cryptocurrencies received from borrowings, which are recorded as "Crypto asset

borrowings" in the consolidated statements of financial position, contribute to securing adequate liquidity,

as they can be used as the Company's own assets or in settlement with cryptocurrency exchange brokers.

The Company regularly monitors the status and outlook of cash flows and reduces liquidity risks.

The maturity analysis of financial liabilities and the corresponding financial assets for managing liquidity

risk are as follows. Cryptocurrencies for facilitating customer transactions are included in the following

tables. The contractual cash flows below reflect cash flows presented on an undiscounted cash flow basis,

including contractual interest payments.

**As of March 31, 2024**

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** |  | | |
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** | Crypto asset <br>borrowings<br>| ¥44,020 | ¥— |
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** | Other financial <br>liabilities<br>|  |  |
| - Lease <br>liabilities<br>| 1661 | 1687 | 394 | 384 | 356 | 356 | 197 |  |  |  |  |
| - Derivative <br>liabilities<br>| 1 | 1 | 1 |  |  |  |  |  |  |  |  |
| - Other<sup>(1)</sup> | 821 | 821 | 821 |  |  |  |  |  |  |  |  |
| **Total Other** <br>**financial** <br>**liabilities**<br>| 2483 | 2509 | 1216 | 384 | 356 | 356 | 197 |  |  |  |  |
| Cash and cash <br>equivalents<br>| 10837 | 10837 | 10837 |  |  |  |  |  |  |  |  |
| Crypto assets <br>held<br>| 44207 | 44207 | 44207 |  |  |  |  |  |  |  |  |

---

**As of March 31, 2025**

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** |  | | |
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** | Crypto asset <br>borrowings<br>| ¥44,479 | ¥— |
| **(In millions)** | **Carrying** <br>**amount** | **Contractu**<br>**al cash** <br>**flows** | **Within** <br>**one year** | **From one** <br>**year to** <br>**two years** | **From two** <br>**years to** <br>**three** <br>**years** | **From** <br>**three** <br>**years to** <br>**four years** | **From** <br>**four years** <br>**to five** <br>**years** | **More** <br>**than five** <br>**years** | Other financial <br>liabilities<br>|  |  |
| - Borrowings | 751 | 751 | 751 |  |  |  |  |  |  |  |  |
| - Lease <br>liabilities<br>| 1277 | 1293 | 384 | 356 | 356 | 197 |  |  |  |  |  |
| - Derivative <br>liabilities<br>|  |  |  |  |  |  |  |  |  |  |  |
| - Other<sup>(1)</sup> | 1699 | 1699 | 1699 |  |  |  |  |  |  |  |  |
| **Total Other** <br>**financial** <br>**liabilities**<br>| 3727 | 3743 | 2834 | 356 | 356 | 197 |  |  |  |  |  |
| Cash and cash <br>equivalents<br>| 8584 | 8584 | 8584 |  |  |  |  |  |  |  |  |
| Crypto assets <br>held<br>| 44680 | 44680 | 44680 |  |  |  |  |  |  |  |  |

---

____________

<sup>(1)</sup> Other financial liabilities mainly consist of accrued expenses, and other payables.

There were no financial liabilities with maturity over one year other than lease liabilities as of March 31,

2024 and March 31, 2025.

In addition, the Company has committed borrowing lines of credit of ¥6,200 million and ¥8,900 million

with Monex Finance Corporation (an affiliate) and a financial institution to manage liquidity risk as of

March 31, 2024 and 2025, respectively. The purpose of the committed borrowing line is for general

business use. There were drawdowns on the committed borrowing line of nil million and ¥751 millionas of

March 31, 2024 and 2025. See <u>[Note 30 (3) "Availability under committed credit lines.](#ice4c7302898b49b3925264c51aaf6c88_174)</u><u>["](#ice4c7302898b49b3925264c51aaf6c88_174)</u>

(c)Market risk

Market risk is the risk of fluctuations in the fair value of cryptocurrencies or future cash flows as a result of

changes in market price. The objective of market risk management is to manage and control market risk

exposure within acceptable parameters, while optimizing the return. Market risk mainly includes price

fluctuation risk of cryptocurrencies.

The Company holds cryptocurrencies to facilitate customer transactions. The Company also monitors net

open position for each cryptocurrency that is traded on its Marketplace platform. To limit the price

fluctuation risk within a certain level, the Company strives to sustain its cryptocurrencies in approximately

the same quantity and amount as the crypto asset borrowings.

**COINCHECK GROUP N.V. and its subsidiaries**

(d)Operational risk

The Company is exposed to operational risk arising from a wide variety of factors associated with business

processes, personnel; technology and infrastructure; and from external factors other than credit, liquidity,

and market risks, such as changes in legal and regulatory requirements. In particular, the Company holds

crypto assets for its own account (crypto assets held (current assets)) and, on behalf of its customers, in the

Company's hot or cold wallets. These wallets are administered by the Company and the Company has

control of the private keys associated with them, allowing it to access and transact with the crypto assets

held therein. If any of the private keys relating to the Company's hot or cold wallets are lost, destroyed, or

otherwise compromised, and no backup of the private key is accessible, the Company would lose access to

crypto assets. If the Company loses access to a crypto asset held for its own account, the Company

derecognizes the crypto asset held. If the Company loses access to a crypto asset held on behalf of

customers, the Company may be liable to its customers for losses arising from the Company's failure to

safeguard crypto assets from theft or loss and there will be a devastating impact on the Company's

operation. Furthermore, the Company cannot provide assurance that the wallet will not be hacked or

compromised. Cryptocurrency and blockchain technologies have been, and may in the future be, subject to

security breaches, hacking, or other malicious activities. The customers' ability to access or sell their

cryptocurrencies could be affected adversely due to any loss of private keys relating to, or hack or other

compromise of, digital wallets used to store cryptocurrencies deposited by customers. See <u>[Note 30](#ice4c7302898b49b3925264c51aaf6c88_174)</u>

<u>["Commitments and contingencies."](#ice4c7302898b49b3925264c51aaf6c88_174)</u>

(e)Foreign exchange risk management

Payables denominatedin foreign currencies are exposed to foreign exchange risks. The Company's foreign

exchange risks arise primarily from fluctuations in U.S. dollar. The Company manages foreign exchange

risks by continuously monitoring trends in foreign exchange rates and managing its exposure to foreign

exchange rate fluctuations.

**(2)Capital management**

The fundamental principles of the Company's capital management are to build and uphold a steady financial

base for the purpose of maintaining soundness and efficiency of operations and achieving growth. According to

these principles, the Company conducts capital investment; profit distribution, such as dividends; and

repayment of loans based on steady operating cash flows through the development and rendering of competitive

crypto asset exchange services.

In line with theCompany's policy, Coincheck's capital management focuses on specific regulatory requirements

in Japan. Coincheck calculates and monitors the financial soundness index at the end of each month as the

record date in accordance with the "Rules on Financial Management for Crypto-Asset Exchange Service

Providers" and related guidelines, which are self-regulatory rules established by the Japan Virtual and Crypto

Assets Exchange Association (JVCEA). The financial soundness index is the ratio of the nonfixed equity

amount to the sum of the market risk equivalent amount, the counterparty risk equivalent amount, and the basic

risk equivalent amount, based on the calculation method stipulated in the related guidelines.

The Company is not subject to any capital restrictions.

**5. Segment reporting**

Operating segments are defined as components of an entity for which separate financial information is available and

that is regularly reviewed by the Chief Operating Decision Maker (CODM) in deciding how to allocate resources to

an individual segment and in assessing performance. The CEO of Coincheck Parent is the CODM of the

Company. The CODM reviews financial information for purposes of making operating decisions, allocating

resources, and evaluating financial performance. While the Company does have revenue from multiple services, no

measures of profitability by service are available. As a result, discrete financial information is not available for each

**COINCHECK GROUP N.V. and its subsidiaries**

such component. As such, the Company has determined that it operates as one operating segment and one reportable

segment.

The Company's revenue is entirely derived from operations within Japan. Furthermore, there is no single customer

from which revenue amounts to 10% or more of the Company's total revenue.

**6. Reverse Recapitalization and Acquisitions of subsidiaries**

**(1)Reverse Recapitalization**

As discussed in <u>[Note 1 "Reporting entity,"](#ice4c7302898b49b3925264c51aaf6c88_16)</u> Thunder Bridge was identified as the "acquired" entity for financial

reporting purposes. Accordingly, the Company treated the Reverse Recapitalization as the equivalent of

Coincheck issuing shares for the net assets of Thunder Bridge as of the closing date of the Reverse

Recapitalization. The net assets of Thunder Bridge are stated at fair value, with no goodwill or other intangible

assets recorded.

This determination was primarily based on the conclusion that the former Coincheck shareholders have a

majority of the voting power of Coincheck Parent and Coincheck personnel comprise a majority of the

governing body of Coincheck Parent.

The Reverse Recapitalization is not within the scope of IFRS 3 since there is no change in control based on the

continued control of the Company by existing Coincheck shareholders and Thunder Bridge does not meet the

definition of a business in accordance with IFRS 3; as such, the Reverse Recapitalization is accounted for

within the scope of IFRS 2. Any excess of fair value of equity instruments deemed to have been issued by

Coincheck over the fair value of Thunder Bridge's identifiable net assets acquired represents compensation for

the service of a stock exchange listing for its shares and is expensed as incurred.

Entities involved in SPAC mergers need to determine which entity is the predecessor whose financial

statements will become the historical financial statements of the combined Company. The determination of

which entity is the predecessor and successor in the merger transaction is separate from the determination of

which entity is the accounting acquirer. Rule 405 under the U.S. Securities Act of 1933, as amended, defines a

predecessor as "a person the major portion of the business and assets of which another person acquired in a

single succession, or in a series of related successions in each of which the acquiring person acquired the major

portion of the business and assets of the acquired person." SPACs are blank-check companies whose sole

purpose is to acquire a target or targets with the capital raised from their IPOs. Given that Thunder Bridge was a

SPAC and did not have any significant activities, Thunder Bridge's own operations before the succession are

insignificant relative to the operations of Coincheck. Thunder Bridge's financial statements do not report any

significant revenues other than investment income on assets held in trust. As such, Coincheck was considered

the predecessor entity for purposes of these consolidated financial statements.

In analogy with IFRS 3, *Business Combination*s, paragraph B21-B22, these financial statements have been

prepared as a continuation of Coincheck with:

• the assets and liabilities of Coincheck recognized and measured in the financial statements at their carrying

amounts immediately prior to the Reverse Recapitalization;

• the retained earnings, ordinary shares and capital surplus of Coincheck recognized in the financial

statements at amounts immediately prior to the Reverse Recapitalization. Ordinary shares and capital

surplus have been adjusted retroactively to reflect the legal capital of Coincheck Parent; and

• the comparative information presented in the financial statements are that of Coincheck.

*Listing expenses*

**COINCHECK GROUP N.V. and its subsidiaries**

The following table displays the reconciliation of the total market capitalization attributable to Thunder Bridge

stockholders and the Reverse Recapitalization impact to additional paid-in capital for the year ended March 31,

2025 and the calculation of the listing expense recognized for the year ended March 31, 2025:

---

| | |
|:---|:---|
| **Fair value of equity instruments deemed to have been issued by Coincheck** | **(In millions, except** <br>**share data and** <br>**percentage)**<br>|
| Thunder Bridge Closing Price per share on December 10, 2024 | 1850 |
| Total number of Coincheck shares at Closing | 129703075 |
| Total Market Capitalization of the Company | ¥239,975 |
| Thunder Bridge shareholders' ownership | 5.5% |
| **Total market capitalization attributable to Thunder Bridge stockholders** | **¥13,165** |
| **Net assets of Thunder Bridge** |  |
| Cash and cash equivalents<sup>(1)</sup> | 1798 |
| Accounts payable and accrued expenses | (17) |
| Income taxes payable | (60) |
| Excise tax payable | (305) |
| Warrant liabilities<sup>(2)</sup> | (1837) |
| Promissory note payable - related party | (128) |
| Net assets (liabilities) of Thunder Bridge as of December 10, 2024 | (549) |
| **Listing expense** | ¥13,714 |

---

____________

<sup>(1)</sup> Cash and cash equivalents represent the acquired cash and cash equivalent of Thunder Bridge before the

payment of ¥1,593 million to Ghisallo under Non-Redemption Agreement since the payment to Ghisallo

occurred immediately after the closing of the Reverse Recapitalization.

<sup>(2)</sup> As the terms of the Thunder Bridge public and private placement warrants are substantially the same before

and after the completion of the Business Combination, the warrants are not deemed to be additional

consideration under IFRS 2 but rather the Thunder Bridge public and private placement warrants were assumed

as part of the Reverse Recapitalization (IAS 32).

*Transaction Proceeds*

Upon closing of the Reverse Recapitalization, the Company received net proceeds of ¥205 million, including

¥4,780 million from the trust, net of redemptions, offset by cash paid for the non-redemption and share forward

agreement (the "Non-Redemption Agreement") with Ghisallo Master Fund LP ("Ghisallo") <u>[(see Note 27](#ice4c7302898b49b3925264c51aaf6c88_192)</u>

<u>["Equity"](#ice4c7302898b49b3925264c51aaf6c88_192)</u> for further details of the non-redemption and share forward agreement) of ¥1,593 million, and

transaction costs and professional fees, paid at closing, of ¥2,982 million. The following table reconciles the

elements of the Reverse Recapitalization to the consolidated statements of cash flows and the consolidated

statement of changes in equity for the year ended March 31, 2025:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | |
|:---|:---|
|  | **(In millions)** |
| Cash-trust and cash, net of redemptions | ¥4,780 |
| Less: Ghisallo Non-Redemption Agreement | (1593) |
| Less: transaction costs and professional fees, paid at closing | (2982) |
| Proceeds from Reverse Recapitalization, net of Non-Redemption Agreement, <br>transaction costs and professional fees<br>| 205 |
| Less: warrant liabilities | (1837) |
| Less: promissory note - related party | (128) |
| Less: excise tax payable | (305) |
| Less: income tax payable | (60) |
| Less: accounts payable and accrued expenses | (17) |
| Less: Other financial liabilities<sup>(1)</sup> | (189) |
| Add: Listing expense | 13714 |
| **Issuance of shares in Reverse Recapitalization, net** | ¥11,383 |

---

____________

<sup>(1)</sup> Other financial liabilities include expenses incurred by Coincheck Parent prior to the Reverse Recapitalization

and recorded at their carrying values as a common control transaction

The following table displays the reconciliation of the total market capitalization attributable to Thunder Bridge

stockholders and the reverse recapitalization impact to additional paid-in capital for the year ended March 31,

2025:

---

| | |
|:---|:---|
|  | **(In millions)** |
| **Total market capitalization attributable to Thunder Bridge stockholders** | ¥13,165 |
| Less: Ghisallo Non-Redemption Agreement | (1593) |
| Less: Additional paid-in capital transferred over when transferring net liabilities from <br>CCG, under common control<br>| (189) |
| Less: Ordinary Shares | (15) |
| Plus: Treasury shares | 4 |
| **Additional paid-in capital from Reverse Recapitalization, net** | ¥11,372 |

---

The Reverse Recapitalization also involved:

• the former Thunder Bridge warrant holders receiving one warrant to purchase an Ordinary Share of

Coincheck Parent for each issued and outstanding warrant to acquire Class A common stock of Thunder

Bridge, which has resulted in the issuance of 4.9 million warrants (see <u>[Note 24 "Financial instruments"](#ice4c7302898b49b3925264c51aaf6c88_210)</u>);

and

• professional services expenditure of ¥4,595 million, incurred to facilitate listing on Nasdaq, which, in

addition to the ¥13,714 million described in the table above, has resulted in a total of ¥18,309 million

related to the share listing and associated expenses being recognized in the profit or loss.

**(2)Acquisition of Next Finance**

On March 14, 2025, the Company acquired 100 percent of the shares in Next Finance Tech Co, Ltd., a staking

platform service company. With Next Finance as part of the Company, the Company will be able to leverage its

**COINCHECK GROUP N.V. and its subsidiaries**

existing services to enhance its customer staking award offerings, and offer staking platform services in the

crypto industry both in and outside of Japan.

The revenue and net loss of Next Finance for the current reporting period would not be material and had no

significant impact on the consolidated financial statements.

(a)Consideration transferred

The following table displays the acquisition date fair value of each major class of consideration transferred.

---

| | |
|:---|:---|
|  | **(In millions)** |
| Cash | ¥265 |
| Ordinary share of Coincheck Parent (1,111,450 shares) | 1077 |
| **Total fair value of consideration** | ¥1,342 |

---

(i)Equity instruments issued

The number of Ordinary Shares issued was 1,111,450 and the fair value of the Ordinary Shares issued

was based on the listed share price of Coincheck Parent at March 14, 2025 of USD6.53 per share.

(b)Acquisition-related costs

The Companyincurred acquisition-related costs of ¥11 million on legal fees and due diligence costs. These

costs have been included in "Selling, general and administrative expenses."

(c)Identifiable assets acquired and liabilities assumed

The following table displays the recognized amounts of assets and liabilities assumed as the date of

acquisition.

---

| | |
|:---|:---|
|  | **(In millions)**<br>**Fair value recognized on acquisition** |
| Cash and cash equivalents | ¥29 |
| Other financial assets | 3 |
| Other assets | 2 |
| Property and equipment | 2 |
| Crypto asset held (non-current) | 21 |
| Other financial assets (non-current) | 1 |
| Deferred tax assets | 49 |
| Other financial liabilities | (5) |
| **Total identifiable net assets acquired** | ¥102 |

---

*Fair values measured on a provisional basis*

The following amount has been measured on a provisional basis.

The fair value of Next Finance's intangible assets has been measured provisionally, pending completion of

an independent valuation. Some of the value attributable togoodwill will be allocated to intangible assets

when the valuation is completed.

**COINCHECK GROUP N.V. and its subsidiaries**

If new information obtained within one year of the date of acquisition about facts and circumstances that

existed at the date of acquisition identifies adjustments to the above amounts, or any additional provisions

that existed at the date of acquisition, then the accounting for the acquisition will be revised.

(d)Goodwill

Goodwill arising from the acquisition has been recognized as follows.

---

| | |
|:---|:---|
|  | **(In millions)** |
| Total identifiable net assets acquired | ¥102 |
| Goodwill arising on acquisition | 1240 |
| Fair value of consideration | ¥1,342 |

---

The goodwill is attributable mainly to the skills and technical talent of Next Finance's work force and the

synergies expected to be achieved from integrating Next Finance into the Company's existing business.

None of the goodwill recognized is expected to be deductible for tax purposes.

**7. Revenue**

**(1) Revenue breakdown**

Revenue breakdowns by revenue from contracts with customers and other sources for the year ended March 31,

2023, 2024 and 2025, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| Revenue arising from contracts with customers |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Transaction revenue<sup>(1)</sup> | ¥174,937 | ¥223,046 | ¥381,705 |
| &nbsp;&nbsp;&nbsp;&nbsp;Commission received<sup>(2)</sup> | 1055 | 729 | 1500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other revenue<sup>(3)</sup> | 932 | 274 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sub-total | 176924 | 224049 | 383205 |
| Other sources |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Other revenue<sup>(4)</sup> |  |  | 125 |
| &nbsp;&nbsp;&nbsp;&nbsp;Sub-total |  |  | 125 |
| **Total** | ¥176,924 | ¥224,049 | ¥383,330 |

---

____________

<sup>(1)</sup> Transaction revenue mainly refers to the revenue from sales of crypto assets to customers and cover

counterparties.

<sup>(2)</sup> Commission received refers to remittance fees, deposit and withdrawal fees, commissions that received from

the issuer and the applicants in the IEO business, commissions that arise from transactions on the Coincheck

NFT Marketplace and commissions that arise from transactions on the Exchange platform and others.

<sup>(3)</sup> Other revenue are mainly related to sales of NFTs owned by the Company.

**COINCHECK GROUP N.V. and its subsidiaries**

<sup>(4)</sup> Other revenue are mainly related to the interest received from financial operations with JSF Trust and

Banking Co., Ltd.

**(2)Contract balance**

As of March 31, 2024 and 2025, there were no significant contract assets or contract liabilities.

For the years ended March 31, 2023, 2024 and 2025, there was no revenue recognized for performance

obligations fulfilled (or partially fulfilled) in the past.

**(3)Transaction price allocated to the remaining performance obligations**

The Company does not have any contracts in which the projected initial contract period was longer than one

year.

**(4)Assets recognized from the costs to obtain or fulfill contracts with customers**

The Company does nothave any significant costs to obtain or fulfill contracts with customers.

**8. Selling, general and administrative expenses**

Selling, general and administrative expenses consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| Personnel expenses | ¥2,020 | ¥2,287 | ¥2,684 |
| Advertising and promotion expenses | 1294 | 661 | 1874 |
| Professional fees | 1262 | 710 | 6163 |
| Communication expenses | 873 | 769 | 786 |
| Subcontract expenses | 787 | 473 | 857 |
| Depreciation and amortization | 483 | 679 | 727 |
| Business management fee | 363 | 458 | 397 |
| Transaction related costs | 297 | 335 | 423 |
| Subcontract labor costs | 280 | 130 | 142 |
| Tax expenses | 27 | 116 | 100 |
| Others | 353 | 139 | 305 |
| Total | ¥8,039 | ¥6,757 | ¥14,458 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

**9. Other income and expenses**

Other income and expenses consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  |  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **Notes** | **2023** | **2024** | **2025** |
| **Other income** |  |  |  |  |
| Gain on sale of crypto assets held (non-current assets) |  | ¥16 | ¥123 | ¥1 |
| Gain on sale of non-major line of business<sup>(1)</sup> |  |  | 300 |  |
| Exchange gain |  | 12 |  | 0 |
| Other |  | 17 | 14 | 21 |
| **Total** |  | ¥45 | ¥437 | ¥22 |
| **Other expenses** |  |  |  |  |
| Impairment loss of crypto assets held (non-current assets) | 13 | ¥69 | ¥— | ¥13 |
| Impairment loss of intangible assets | 17 | 9 |  |  |
| Loss on sales and disposals of intangible assets | 17 | 37 | 39 | 34 |
| Loss on sale of crypto assets (non-current assets) |  | 28 |  |  |
| Loss on sale of subsidiary stock |  | 5 |  |  |
| Lease contract cancellation penalty |  |  | 44 |  |
| Termination benefits |  | 1 | 39 |  |
| Exchange loss |  |  | 8 | 42 |
| Other |  | 16 | 23 | 16 |
| **Total** |  | ¥165 | ¥153 | ¥105 |

---

____________

<sup>(1)</sup> TheCompany sold the Sharely business and recorded a gain of ¥300 million in "Other income" in the

consolidated statement of profit or loss and other comprehensive income for the year ended March 31, 2024. The

Company evaluated the disposal of the Sharely business in accordance with IFRS 5, *Non-current Assets Held for* 

*Sales and Discontinued Operations*, and determined that it did not meet the definition of discontinued operations as

it did not represent a separate major line of business.

**10. Financial income and expenses**

Financial income and expenses consist of the following:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| **Financial income** |  |  |  |
| Change in fair value of warrant liability | ¥— | ¥— | ¥1,435 |
| Net gain on sale of other financial assets (non-current <br>assets)<br>|  |  | 11 |
| Derivative gains |  | 61 | 9 |
| Others | 0 | 6 | 2 |
| **Total** | ¥0 | ¥67 | ¥1,457 |
| **Financial expenses** |  |  |  |
| Impairment loss of other financial assets (non-current <br>assets)<br>| ¥— | ¥11 | ¥4 |
| Interest expenses | 3 | 6 | 35 |
| Derivative losses | 4 |  |  |
| **Total** | ¥7 | ¥17 | ¥39 |

---

**11. Cash and cash equivalents**

Cash and cash equivalents mainly consist of bank deposits. They are demand deposits and held for the purpose of

meeting short-term cash commitments. Cash and cash equivalents in the consolidated statements of cash flows

equals cash and cash equivalents in the consolidated statements of financial position.

The Company separately manages legal tender deposited by customers from its own. In accordance with Japanese

laws and regulations, all legal tender deposited by customers shall be safeguarded by trust companies. Accordingly,

cash deposited by customers is accounted for under <u>["Cash segregated as deposits" (see Note 12)](#ice4c7302898b49b3925264c51aaf6c88_318)</u> as of March 31,

2024 and 2025 because it is neither cash nor cash equivalents.

**12. Cash segregated as deposits**

Cash segregated as deposits represents separately managed cash deposited by customers. The balances of cash

segregated as deposits as ofMarch 31, 2024 and 2025 were ¥59,256 million and ¥51,655 million, respectively,

which were less than the corresponding liability of "Deposits received" in the consolidated statements of financial

position of ¥59,276 million and ¥50,911 million as of March 31, 2024 and 2025, respectively, because it generally

takes several days to deposit/withdraw the funds received from customers in the trust account, while the Company

recognizes the entire amount of the deposits as liabilities immediately after the customers' depositing has been

completed.

**13. Crypto assets held**

Under IFRS, there are no accounting standards specifically related to the transactions of crypto assets. However,

cryptocurrencies holdings were discussed by the IFRIC in its June 2019 meeting in the "committee's agenda

decisions" part. The agenda decisions part relating to "Holdings of Cryptocurrencies" did not specifically address as

to when an entity has control over crypto assets. Thus, in order to determine the accounting treatment, the Company

follows the requirements of IAS 8, *Accounting Policies*, *Changes in Accounting Estimates and Errors*, and refers to

the "Conceptual Framework for Financial Reporting" and standards related to similar matters. In this context, the

Company considers various factors to evaluate whether the Company has control for accounting purposes over

crypto assets and accounts for these transactions accordingly.

**COINCHECK GROUP N.V. and its subsidiaries**

The Company's holdings of crypto assets considered to be controlled by the Company for accounting purposes are

presented as part of crypto assets held in the consolidated statements of financial position. However, the Company's

holdings of crypto assets deposited by customers and considered not to be controlled by the Company are not

recognized as crypto assets held in the consolidated statements of financial position. see <u>[Note 2 (5) "Changes in](#ice4c7302898b49b3925264c51aaf6c88_481)</u>

<u>[accounting policies."](#ice4c7302898b49b3925264c51aaf6c88_481)</u> 

Crypto assets deposited by customers include cryptocurrencies and NFTs. Crypto assets deposited by customers are

mainly held in electronic wallets administered by the Company in the same way as the Company's holdings of

crypto assets in its own accounts. Although the Company has the private keys that are necessary to dispose of crypto

assets deposited by customers, the Company is obligated to purchase and sell crypto assets under the instructions of

the customers based on the contractual arrangement with the customers, and the use of the private keys without

permission from customers is strictly prohibited. Additionally, in terms of cryptocurrencies, following the

requirements of the "Payment Services Act," "Cabinet Office Order on Virtual Currency Exchange Service

Providers" and other laws and regulations, the Company segregates cryptocurrencies deposited by customers from

those of the Company in its own accounts and manages each of the customers' balances. Regarding NFTs, there are

no clear legal regulations in Japan as of March 31, 2025, and NFTs deposited by customers are held in hot wallets.

NFTs deposited by customers are recorded in the Company's database and internal records in the account of the

depositing customers. Therefore, the economic benefits and risks related to crypto assets deposited by customers,

including cryptocurrencies and NFTs, belong, in principle and as matter of contract, to the customers, and the

Company is not exposed to risks of significant changes in the fair value of these crypto assets. However, legal rights

regarding crypto assets may not be entirely clear, and there may be a possibility that crypto assets deposited by

customers would be dealt with in the same manner as crypto assets of the Company in its own accounts at the

liquidation of the Company, although Article 63-19-2 of Japan's Payment Services Act provides that customers have

preferential repayment rights with respect to Deposited Crypto Assets and Redemption Guarantee Crypto Assets (as

defined in the Payment Services Act) in the event of the bankruptcy of a crypto asset exchange service provider.

The accounting policies and balances of the Company's crypto assets by holding purpose are as follows:

**(1)Crypto assets held (current assets)**

Out of the holdings of cryptocurrencies that are considered to be controlled by the Company for accounting

purposes, cryptocurrencies for facilitating customer transactions are recognized as inventories in the

consolidated statements of financial position according to provisions of IAS 2, *Inventories*, as the Company has

the ability to direct the use of these cryptocurrencies and the economic benefits resulting from sales attribute to

the Company. As of March 31, 2024 and 2025, the carrying amounts were ¥44,207 million and ¥44,680 million,

respectively. These amounts are calculated based on the fair value less costs to sell at the end of the reporting

period. See <u>[Note 25 "Fair value measurement."](#ice4c7302898b49b3925264c51aaf6c88_204)</u>

**(2)Crypto assets held (noncurrent assets)**

Crypto assets held (noncurrent assets) are recognized as intangible assets with indefinite useful lives which are

not amortized. There is no foreseeable limit to the period over which the future cash flows of crypto assets held

(noncurrent assets) would be generated as the future cash flows cannot be reliably estimated. The useful lives of

crypto assets held (noncurrent assets) are regarded as indefinite accordingly. They are reported at the acquisition

cost less accumulated impairment losses. As of March 31, 2024, and March 31, 2025, the carrying amounts

were ¥0 million and ¥43 million, respectively.

During the years ended March 31, 2024, and 2025, no impairment losses were recognized.

The changes in crypto assets held (non-current assets) are as follows:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | |
|:---|:---|:---|:---|
| ***(In millions)*** | | | |
| **Crypto assets held(non-current assets)** | <br>**Cryptocurrency** | <br>**NFT** | <br>**Total** |
| **As of March 31, 2023** | ¥24 | ¥19 | ¥43 |
| Additions (not by business combination) | 330 |  | 330 |
| Disposals | (354) | (19) | (374) |
| **As of March 31, 2024** |  |  |  |
| Additions (by business combination) | 21 |  | 21 |
| Additions (not by business combination) | 458 |  | 458 |
| Disposals | (435) |  | (435) |
| **As of March 31, 2025** | ¥43 | ¥— | ¥43 |

---

**14. Customer accounts receivable**

Customer accounts receivable is mainly due from credit card companies, which are payment processors, for

settlement of funds from customers. There are no overdue customer accounts receivable as of March 31, 2024 and

March 31, 2025. For allowance for doubtful receivables, see <u>[Note 4 (1) (a) "Credit risk."](#ice4c7302898b49b3925264c51aaf6c88_437)</u>

**15. Other financial assets**

Other financial assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| **Current portion** |  |  |
| Other receivables | ¥34 | ¥40 |
| US dollar stablecoins | ¥3 | ¥22 |
| Sub-total | 37 | 62 |
| **Non-current portion** |  |  |
| Deposits and guarantee deposits<sup>(1)</sup> | 575 | 388 |
| Equity security investments<sup>(2)</sup> | 39 | 46 |
| Sub-total | 614 | 433 |
| **Total** | ¥651 | ¥495 |

---

____________

<sup>(1)</sup> Deposits and guarantee deposits (non-current assets)mainly consist of the guarantee deposits paid to the lessors

for leased properties.

<sup>(2)</sup> Equity security investments represent the equity security investments which are measured at fair value through

profit or loss. See Note 25 (2) "<u>[Fair value hierarchy of assets and liabilities measured at fair value on a recurring](#ice4c7302898b49b3925264c51aaf6c88_204)</u>

<u>[basis](#ice4c7302898b49b3925264c51aaf6c88_204)</u>."

**16. Property and equipment**

The changes in the acquisition cost, accumulated depreciation and accumulated impairment losses of property and

equipment are as follows:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Right-of-use** <br>**assets**<br>| **Leasehold** <br>**improvements**<br>| **Equipment** <br>**and fixtures**<br>| **Construction** <br>**in progress**<br>| **Total** |
| Acquisition cost  |  |  |  |  |  |
| As of March 31, 2023 | ¥1,535 | ¥455 | ¥189 | ¥— | ¥2,179 |
| Additions<sup>(1)</sup> | 1758 |  | 4 | 303 | 2065 |
| Decrease due to lease <br>term changes<br>| (82) |  |  |  | (82) |
| Sales and disposals | (240) | (202) | (44) | (4) | (490) |
| As of March 31, 2024 | 2972 | 253 | 149 | 299 | 3672 |
| Additions<sup>(1)</sup> | 418 | 4 | 7 | 120 | 549 |
| Additions (transferred <br>from Construction in <br>progress)<br>|  | 406 | 13 | (419) |  |
| Additions (business <br>combination)<br>|  | 2 |  |  | 2 |
| Sales and disposals | (1329) | (123) | (48) |  | (1500) |
| As of March 31, 2025 | ¥2,062 | ¥542 | ¥121 | ¥— | ¥2,725 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Right-of-use** <br>**assets**<br>| **Leasehold** <br>**improvements**<br>| **Equipment** <br>**and fixtures**<br>| **Construction** <br>**in progress**<br>| **Total** |
| Accumulated depreciation and accumulated impairment loss  | Accumulated depreciation and accumulated impairment loss  | Accumulated depreciation and accumulated impairment loss  | Accumulated depreciation and accumulated impairment loss  |  |  |
| As of March 31, 2023 | ¥(1030) | ¥(370) | ¥(135) | ¥— | ¥(1535) |
| Depreciation (charged to <br>profit or loss)<sup>(2)</sup><br>| (406) | (74) | (20) |  | (500) |
| Depreciation (charged to <br>intangible assets)<sup>(2)</sup><br>| (25) |  |  |  | (25) |
| Sales and disposals | 136 | 194 | 30 |  | 360 |
| As of March 31, 2024 | (1325) | (250) | (125) |  | (1700) |
| Depreciation (charged to <br>profit or loss)<sup>(2)</sup><br>| (426) | (77) | (8) |  | (511) |
| Depreciation (charged to <br>intangible assets)<sup>(2)</sup><br>| (100) |  |  |  | (100) |
| Sales and disposals | 1329 | 123 | 44 |  | 1496 |
| As of March 31, 2025 | ¥(522) | ¥(204) | ¥(89) | ¥— | ¥(815) |
| Carrying amount |  |  |  |  |  |
| As of March 31, 2023 | ¥505 | ¥85 | ¥54 | ¥— | ¥644 |
| As of March 31, 2024 | ¥1,647 | ¥3 | ¥24 | ¥299 | ¥1,973 |
| As of March 31, 2025 | ¥1,539 | ¥338 | ¥32 | ¥— | ¥1,909 |

---

____________

<sup>(1)</sup> The assets recognized corresponding to asset retirement obligations are included in "Right-of-use assets." The

additions of asset retirement obligation of ¥35 million and ¥339 million for March 31, 2024 and 2025, respectively,

were recorded for the leased office building due the remeasurement. See <u>[Note 23 "Provisions."](#ice4c7302898b49b3925264c51aaf6c88_216)</u>

**COINCHECK GROUP N.V. and its subsidiaries**

<sup>(2)</sup> Depreciation on property and equipment is generally included in "Selling, general and administrative expenses" in

the consolidatedstatements of profit or loss and other comprehensive income, except when it is attributable to

"Internally generated intangible assets," which represents amounts capitalized as software. When attributable to

"Internally generated intangible assets" such amounts are recognized in "Intangible assets" in the consolidated

statements of financial position.

<sup>(3)</sup> There was no property and equipment with restricted ownership or pledged as collateral as of March 31, 2024 and

2025. **17.Intangible assets**

The changes in acquisition cost, accumulated amortization and accumulated impairment losses of intangible assets

are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Internally** <br>**generated** <br>**intangible** <br>**assets**<br>| **Goodwill** | **Others** | **Total** |
| **Acquisition cost**  |  |  |  |  |
| As of March 31, 2023 | ¥962 | ¥— | ¥3 | ¥965 |
| Additions (not by business combination) | 380 |  |  | 380 |
| Additions (transferred from property and <br>equipment)<br>| 25 |  |  | 25 |
| Sales and disposals | (39) |  |  | (39) |
| As of March 31, 2024 | 1328 |  | 3 | 1331 |
| Additions (not by business combination) | 524 |  |  | 524 |
| Additions (business combination)<sup>(1)</sup> |  | 1240 |  | 1240 |
| Additions (transferred from property and <br>equipment)<br>| 100 |  |  | 100 |
| Sales and disposals | (35) |  | (1) | (36) |
| As of March 31, 2025 | ¥1,917 | ¥1,240 | ¥2 | ¥3,159 |
| **Accumulated depreciation and** <br>**accumulated impairment loss** <br>|  |  |  |  |
| As of March 31, 2023 | ¥(362) | ¥— | ¥(3) | ¥(365) |
| Amortization<sup>(2)</sup> | (178) |  |  | (179) |
| As of March 31, 2024 | (541) |  | (3) | (544) |
| Amortization<sup>(2)</sup> | (217) |  |  | (217) |
| Sales and disposals | 1 |  | 1 | 2 |
| As of March 31, 2025 | ¥(757) | ¥— | ¥(2) | ¥(759) |
| **Carrying amount** |  |  |  |  |
| As of March 31, 2023 | ¥600 | ¥— | ¥— | ¥601 |
| As of March 31, 2024 | ¥788 | ¥— | ¥— | ¥788 |
| As of March 31, 2025 | ¥1,161 | ¥1,240 | ¥— | ¥2,401 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

____________

<sup>(1)</sup> Goodwill was recognized in the year ended March 31, 2025 due to the business combination of Next Finance. See

Note <u>[6(2) "Acquisition of Next Finance."](#ice4c7302898b49b3925264c51aaf6c88_393)</u>

<sup>(2)</sup> Intangible assets with definite useful lives are amortized over their useful lives.

The amortization of intangible assets is included in "Selling, general and administrative expenses" in the

consolidated statements of profit or loss and other comprehensive income.

<sup>(3)</sup> There were no intangible assets with restricted ownership or that are pledged as collateral as of March 31, 2024

and 2025.

<sup>(4)</sup> Crypto assets held (non-current assets) recognized as intangible assets are described in <u>[Note 13 "Crypto assets](#ice4c7302898b49b3925264c51aaf6c88_298)</u>

<u>[held."](#ice4c7302898b49b3925264c51aaf6c88_298)</u>

**18. Leases**

The Company leases office buildings for management and operation purposes.

**(1)Right-of-use assets**

Right-of-use assets related to leased properties are presented as property and equipment. See <u>[Note 16 "Property](#ice4c7302898b49b3925264c51aaf6c88_272)</u>

<u>[and equipment."](#ice4c7302898b49b3925264c51aaf6c88_272)</u>

**(2)Lease liabilities**

Lease liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| Current portion | ¥384 | ¥376 |
| Non-current portion | 1277 | 901 |
| Total  | ¥1,661 | ¥1,277 |

---

Lease liabilities are included in "Other financial liabilities" in the consolidated statements of financial position.

The balances of lease liabilities by maturity are presented in <u>[Note 4 "Financial risk management."](#ice4c7302898b49b3925264c51aaf6c88_437)</u>

**(3)Amounts recognized in the consolidatedstatements of profit or loss and other comprehensive income**

Amounts recognized in the consolidated statements of profit or loss and other comprehensive income are as

follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| Interest expenses on lease liabilities | ¥3 | ¥5 | ¥10 |
| Expenses pertaining to short-term leases | 3 | 1 |  |
| Expenses pertaining to leases of low-value assets that are <br>not short-term leases expenses<br>| ¥14 | ¥25 | ¥28 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

**(4)Amounts recognized in the consolidated statements of cash flows**

The total cash outflows for leases for the years ended March 31, 2023, 2024 and 2025 were ¥275 million, ¥358

million and ¥501 million, respectively.

**19. Deferred taxes and income tax expenses (benefits)**

**(1)Deferred taxes**

---

| | | | |
|:---|:---|:---|:---|
|  | **As of March 31,** | **Recognized** <br>**through profit or** <br>**loss** | **As of March 31,** |
| ***(In millions)*** | **2023** | **Recognized** <br>**through profit or** <br>**loss** | **2024** |
| **Deferred tax assets:** |  |  |  |
| Lease liabilities | ¥107 | ¥415 | ¥522 |
| Tax losses carried forward | 493 | (467) | 26 |
| Accrued enterprise tax |  | 36 | 36 |
| Accrued bonuses |  | 71 | 71 |
| Accrued expenses | 58 | 40 | 98 |
| Accrued paid leaves | 17 | (1) | 16 |
| Reversal for valuation gain of crypto assets held <br>(non-current assets)<br>| 12 | (12) |  |
| Leasehold improvements | 45 | (26) | 19 |
| Asset retirement obligations | 69 | (32) | 37 |
| Impairment loss of crypto assets held (non-<br>current assets)<br>| 21 | (21) |  |
| Change in fair value of crypto assets held (non-<br>current assets)<br>| 23 | (23) |  |
| Write-down for crypto assets held (current <br>assets)<br>| 27 | (27) |  |
| Other | 18 | 15 | 33 |
| **Total deferred tax assets** | ¥890 | ¥(32) | ¥858 |
| **Deferred tax liabilities:** |  |  |  |
| Lease assets | ¥107 | ¥392 | ¥499 |
| Asset retirement obligation | 44 | (38) | 6 |
| **Total deferred tax liabilities** | ¥151 | ¥354 | ¥505 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March** <br>**31,**<br>| **Recognized** <br>**through** <br>**profit or loss** | **Addition** <br>**(business** <br>**combination)** | **As of March** <br>**31,**<br>|
| ***(In millions)*** | **2024** | **Recognized** <br>**through** <br>**profit or loss** | **Addition** <br>**(business** <br>**combination)** | **2025** |
| **Deferred tax assets:** |  |  |  |  |
| Lease liabilities | ¥522 | ¥(97) | ¥— | ¥425 |
| Tax losses carried forward | 26 | (26) | 49 | 49 |
| Accrued enterprise tax | 36 | 13 |  | 49 |
| Accrued bonuses | 71 | 27 |  | 98 |
| Accrued expenses | 98 | (22) |  | 76 |
| Accrued paid leaves | 16 |  |  | 16 |
| Leasehold improvements | 19 | 17 |  | 36 |
| Asset retirement obligations | 37 | 70 |  | 107 |
| Other | 33 | (4) |  | 29 |
| **Total deferred tax assets** | ¥858 | ¥(22) | ¥49 | ¥885 |
| **Deferred tax liabilities:** |  |  |  |  |
| Lease assets | 499 | (104) |  | 395 |
| Asset retirement obligation | 6 | 98 |  | 104 |
| **Total deferred tax liabilities** | ¥505 | ¥(6) | ¥— | ¥499 |

---

Deferred tax assets and deferred tax liabilities presented in the consolidated statements of financial position are

as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| **Assets:** |  |  |
| Deferred tax assets | ¥858 | ¥885 |
| Deferred tax liabilities | 505 | 499 |
| Net amount | ¥353 | ¥386 |

---

In the year ended March 31, 2023, Coincheckdid not make profit and recognized tax losses. Coincheck fully

recognized deferred tax assets in respect of unused tax losses as of March 31, 2023, because Coincheck

estimated that it would be probable to generate sufficient future taxable profits considering the long-term market

trend and by reference to the operating results in past years.

In the year ended March 31, 2024, Coincheck generated profits and utilized most of the tax losses carried

forward from prior years. As of March 31, 2024, Coincheck fully recognized the deferred tax assets in respect

of the remaining unused tax losses. Coincheck estimated that it would be probable to generate sufficient future

taxable profits to utilize the tax losses considering the recent performance of cryptocurrency market.

In the year endedMarch 31, 2025, Coincheck generated profits and utilized all the tax losses carried forward

from prior years. As of March 31, 2025, Next Finance fully recognized the deferred tax assets related to the

remaining unused tax losses, based on an estimate that it would be probable to generate sufficient future taxable

profits to utilize the tax losses according to its future business plan.

However, Coincheck Parent and CCG AS do not recognize deferred tax assets for tax losses of ¥3,180 million

due to the fact that sufficient future taxable profits are not expected. There is no expiration date for the tax loss

carried forward.

**COINCHECK GROUP N.V. and its subsidiaries**

**(2)Income tax expense (benefits)**

Income tax expenses (benefits) consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| **Current tax expenses** |  |  |  |
| Reporting period | ¥15 | ¥487 | ¥976 |
| Sub-total | 15 | 487 | 976 |
| **Deferred tax expenses (benefits)** |  |  |  |
| Origination and reversal of temporary differences | 188 | (82) | 14 |
| Origination and reversal of tax losses carried forward | (459) | 468 | 26 |
| Increase in tax rate |  |  | (25) |
| Recognition of previously unrecognized deductible <br>temporary differences<br>| (31) |  |  |
| Sub-total | (303) | 386 | 15 |
| **Total income tax expenses (benefits)** | ¥(287) | ¥873 | ¥991 |

---

Current tax expenses include the amount of benefits arising from previously unrecognized tax loss carryforward

and temporary differences of prior years that are used to reduce the current taxes. Corporate tax, inhabitant tax

and deductible enterprise tax are levied against the Company, and the statutory tax rate in Japan calculated

based on these taxes was 30.6% for the years ended March 31, 2023, 2024 and 2025.

As a result of the enactment of the "Act Partially Amending the Income Tax Act, etc." (Act No. 13 of 2025) by

the Japan National Diet on March 31, 2025, the corporate tax rate for Coincheck and other subsidiaries in Japan

will be changed beginning with the fiscal year commencing April 1, 2026. Accordingly, the statutory effective

tax rate used in the calculation of the relevant deferred tax assets and deferred tax liabilities has been changed

from 30.6% to 31.5%.

For the year ended March 31, 2025, the effective statutory tax rate of Coincheck Parent is 25.8%. For other

subsidiaries, local corporate and other tax rates have been applied.

Reconciliation between the statutory effective tax rate and the effective tax rate in the consolidated statements

of profit or loss and other comprehensive income is as follows:

---

| | | | |
|:---|:---|:---|:---|
| **%** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
|  | **2023**<sup>(1)</sup> | **2024** | **2025**<sup>(3)</sup> |
| Statutory effective tax rate | 30.6% | 30.6% | 25.8% |
| Permanent difference | —% | —% | (26.5)% |
| Tax rate differences with Coincheck Parent | —% | —% | (1.3)% |
| Current-year losses for which no deferred tax asset is <br>recognised<br>| —% | —% | (6.0)% |
| Non-deductible expenses | (0.8)% | 0.1% | 0.7% |
| Others<sup>(2)</sup> | 4.1% | —% | (0.1)% |
| Effective tax rate | 33.9% | 30.7% | (7.4)% |

---

____________

**COINCHECK GROUP N.V. and its subsidiaries**

<sup>(1)</sup> For the year ended March 31, 2023, the Company recognized loss before income taxes and, consequently,

reconciling items shown in the table which increase Income tax expenses are presented as negative amounts and

reconciling items which reduce Income tax expenses are presented as positive amounts.

<sup>(2)</sup> Others mainly consist of recognition of previously unrecognized deductible temporary differences.

<sup>(3)</sup> For the year ended March 31, 2025, the effective tax rate differs from the statutory effective rate of 25.8%

primarily because of the listing expense and professional fees related to the Reverse Recapitalization that were

recorded on Coincheck Parent's books.

**20. Crypto asset borrowings**

Under the Coincheck Lending program, when the Company enters into borrowing agreements with customers, the

Company obtains control over the crypto assets deposited by those customers, regardless of whether the Company

has actually borrowed the crypto assets or the crypto assets remain deposited with the Company. These crypto assets

are recognized as inventories under "Crypto assets held" in the consolidated statement of financial position and the

Company's corresponding obligation to return these crypto assets to customers is recognized as a liability under

"Crypto asset borrowings."

Crypto asset borrowings are initially measured at the fair value of the crypto assets borrowed/deposited. Subsequent

to initial recognition, changes in fair value of crypto asset borrowings are recognized in profit or loss in the

corresponding period. See <u>[Note 25 "Fair value measurement."](#ice4c7302898b49b3925264c51aaf6c88_204)</u>

The fee expenses (calculated as in-kind interest on the amount borrowed) related to crypto asset borrowings, paid in

the same cryptocurrency, for the year ended March 31, 2023, 2024 and 2025, were ¥49 million, ¥35 million and ¥51

million, respectively, which were included in "Transaction related costs" of "Selling, general, and administrative

expenses" in the consolidated statements of profit or loss and other comprehensive income. The fee expenses related

to crypto asset borrowings for the year ended March 31, 2023, 2024 and 2025 are included as an adjustment to

reconcile profit (loss) to "Cash flows from operating activities" in the consolidated statements of cash flows.

**21. Other financial liabilities**

Other financial liabilities consist of the following:

---

| | | | |
|:---|:---|:---|:---|
|  | | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **Note** | **2024** | **2025** |
| **Current portion** |  |  |  |
| Accrued expenses |  | ¥646 | ¥487 |
| Lease liabilities | 18 | 384 | 376 |
| Loans payable to related party | 29 |  | 751 |
| Other payables to parent company | 29 | 125 |  |
| Other payables to third parties |  | 50 | 1210 |
| Other |  | 1 | 2 |
| **Sub-total** |  | ¥1,206 | ¥2,826 |
| **Non-current portion** |  |  |  |
| Lease liabilities | 18 | ¥1,277 | ¥901 |
| **Sub-total** |  | 1277 | 901 |
| **Total** |  | ¥2,483 | ¥3,727 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

**22. Other current assets and liabilities**

Other current assets consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| Consumption tax receivable | ¥253 | ¥569 |
| Prepaid expenses | 124 | 465 |
| Others | 0 | 1 |
| **Total** | ¥377 | ¥1,035 |

---

Other current liabilities consist of the following:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| Accrued bonus | ¥241 | ¥364 |
| Tax payables | 67 | 62 |
| Accrued paid leaves | 51 | 52 |
| Cryptocurrency payable |  | 40 |
| Advance payment and other | 1 | 18 |
| **Total** | ¥360 | ¥536 |

---

**23. Provisions**

Provisions consist of asset retirement obligations.

The Company recognizes provisions for asset retirement obligations to settle future obligations for dismantling,

removing and restoring the leased buildings to return them to the state they were initially received in according to

the lease contracts. The probable amount to be paid in the future is estimated and recognized based on prior

experience. The provisions have been calculated using the risk-free rate in Japan at the commencement of the leases.

These expenses are expected to be paid in the future and might be affected by future business plans of the Company.

The changes in provisions are as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| **Beginning balance**  | ¥225 | ¥120 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions made during the year | 35 | 339 |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions used during the year | (38) | (120) |
| &nbsp;&nbsp;&nbsp;&nbsp;Provisions reversed during the year | (102) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Unwind of discount |  | 1 |
| **Ending balance** | 120 | 340 |
| Current portion | 120 |  |
| Non-current portion |  | 340 |
| **Total** | ¥120 | ¥340 |

---

**COINCHECK GROUP N.V. and its subsidiaries**

**24. Financial instruments**

The fair values of financial assets and liabilities are determined as below. Information about the fair value hierarchy

is described in <u>[Note 25 "Fair value measurement."](#ice4c7302898b49b3925264c51aaf6c88_204)</u>

**(1)Cash and cash equivalents**

Since cash and cash equivalents mainly consist of bank deposits, the carrying amount approximates their

fair value.

**(2)Cash segregated as deposits**

Cash segregated as deposits includes cash deposited in trust accounts. The carrying amount approximates

its fair value.

**(3)Customer accounts receivable, Other financial assets, Deposits received, and Other financial** 

**liabilities**

Other financial assets includes receivables, guarantee deposits and USD Coin (a stablecoin). The carrying

amount of instruments with short-term maturity approximates their fair value. The fair value of instruments

with long-term maturity is measured using future cash flows discounted by a rate reflecting the

counterparty or the Company's credibility, which is a reasonable approximation of the carrying amount.

**(4)Warrant liabilities**

As part of Thunder Bridge's IPO, Thunder Bridge issued private and public warrants to third-party

investors where each whole warrant entitled the holder to purchase oneshare of Thunder Bridge's Class A

common stock at an exercise price of USD11.5 per share.

In connection with the Reverse Recapitalization, and pursuant to a warrant assumption and amendment

agreement, dated as of December 10, 2024 (the closing date of the Business Combination), Thunder Bridge

private and public warrants were exchanged for Coincheck Parent's private and public warrants,

respectively, and subject to the same material terms. Upon the completion of the Reverse Recapitalization,

there were 4,730,557 public warrants outstanding and 129,611 private warrants outstanding.

The warrants expire on the earlier of the fifth anniversary of the Reverse Recapitalization or the date on

which Coincheck Parent may call the public warrants for redemption, subject to the conditions outlined in

the warrant assumption and amendment agreement. The warrants are exercisable at a price of USD11.5 per

share.

**25. Fair value measurement**

**(1)Fair value hierarchy**

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as

possible. Fair values are categorized into different levels in the fair value hierarchy based on the inputs used in

the valuation techniques as follows:

Level 1:Quoted prices without adjustments in an active market for identical assets or liabilities.

Level 2:Inputs other than the quoted prices included within Level 1 that are observable for the assets or

liabilities, either directly or indirectly.

Level 3:Unobservable inputs for the assets or liabilities.

**COINCHECK GROUP N.V. and its subsidiaries**

The level of fair value hierarchy is determined by the lowest-level input that is significant to the measurement of

the fair value.

There were no transfers between levels for the year ended March 31, 2024 and 2025

**(2)Fair value hierarchy of assets and liabilities measured at fair value on a recurring basis**

Fair value hierarchy of assets and liabilities measured at fair value on a recurring basis in the consolidated

statements of financial position is as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As of March 31, 2024** |  | | | | |
| ***(In millions)*** | **Note** | <br>**Level 1** | <br>**Level 2** | <br>**Level 3** | <br>**Total** |
| Crypto assets held<sup>(1)</sup> | 13 | ¥44,207 | ¥— | ¥— | ¥44,207 |
| Other financial assets<sup>(2)</sup> | 15 | 2 | 3 | 39 | 44 |
| Total |  | ¥44,209 | ¥3 | ¥39 | ¥44,251 |
| Crypto asset borrowings | 20 | ¥44,020 | ¥— | ¥— | ¥44,020 |
| Other financial liabilities<sup>(2)</sup> | 21 |  | 1 |  | 1 |
| Total |  | ¥44,020 | ¥1 | ¥— | ¥44,021 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As of March 31, 2025** |  | | | | |
| ***(In millions)*** | **Note** | <br>**Level 1** | <br>**Level 2** | <br>**Level 3** | <br>**Total** |
| Crypto assets held<sup>(1)</sup> | 13 | ¥44,680 | ¥— | ¥— | ¥44,680 |
| Other financial assets<sup>(2)</sup> | 15 | 22 |  | 46 | 68 |
| Total |  | ¥44,702 | ¥— | ¥46 | ¥44,748 |
| Crypto asset borrowings | 20 | ¥44,479 | ¥— | ¥— | ¥44,479 |
| Warrant liability |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Public warrant liability | 24 | 398 |  |  | 398 |
| &nbsp;&nbsp;&nbsp;&nbsp;Private warrant liability<sup>(3)</sup> | 24 |  |  | 12 | 12 |
| Total |  | ¥44,878 | ¥— | ¥12 | ¥44,889 |

---

____________

<sup>(1)</sup> Crypto assets held (current assets) consist of cryptocurrencies for facilitating customer transactions.

<sup>(2)</sup> USD Coin which is included in "Other financial assets" is categorized as Level 1. Derivative assets and

derivative liabilities which are included in "Other financial assets" and "Other financial liabilities" are

categorized as Level 2. Other financial assets categorized as Level 3 are equity investments in non-listed

company by using the valuation method based on net assets adjusted by items that are necessary for fair value

measurement purposes. The changes in fair value are recognized through other income and expenses. The

financial assets categorized as Level 3 are measured by valuation policy and procedures set by the Company

and the valuation results are reviewed and approved by Chief Financial Officer.

The following table presents a reconciliation of other financial assets and warrant liabilities measured at fair

value on a recurring basis using significant unobservable inputs:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | |
|:---|:---|:---|
| Equity security investments | Equity security investments | Equity security investments |
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| Balance, beginning of period  | ¥40 | ¥39 |
| Fair value recorded in connection with acquisition | 10 | 21 |
| Change in fair value | (11) | (4) |
| Settlement  |  | (10) |
| Balance, end of period  | ¥39 | ¥46 |

---

---

| | |
|:---|:---|
| **Private warrant liabilities** | **Private warrant liabilities** |
|  | **As of March 31,** |
| ***(In millions)*** | **2025** |
| Initial recognition, December 10, 2024 | ¥56 |
| Change in fair value | (45) |
| Foreign exchange impact | 1 |
| **As of March 31, 2025** | ¥12 |

---

<sup>(3)</sup> Private warrant liability is valued using a Black-Scholes Merton model. The assumptions used to value the

private warrant liabilities during the period were as follows.

---

| | | |
|:---|:---|:---|
|  | **Initial value** <br>**December 10,** | <br>**March 31,** |
|  | **2024** | **2025** |
| Exercise price | USD11.5 | USD11.5 |
| Share price | USD12.2 | USD5.1 |
| Volatility | 1% | 35.9% |
| Expected life (in years) | 5 | 4.7 |
| Risk-free rate | 4.09% | 3.95% |
| Dividend yield | $— | $— |

---

**(3)Fair value hierarchy of assets and liabilities measured at fair value on a non-recurring basis**

**As of March 31, 2024**

There were no assets or liabilities measured at fair value on a nonrecurring basis as of March 31, 2024.

**As of March 31, 2025**

There were nosignificant assets or liabilities measured at fair value on a nonrecurring basis as of March 31,

2025. F-50

**COINCHECK GROUP N.V. and its subsidiaries**

**26. Employee benefits**

Employee benefit expenses are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions)*** | **2023** | **2024** | **2025** |
| Wages and salaries | ¥2,009 | ¥2,271 | ¥2,671 |
| Social security contributions | 244 | 302 | 303 |
| Termination benefits | 1 | 39 |  |
| Other | 28 | 5 | 9 |
| **Total** | ¥2,282 | ¥2,617 | ¥2,983 |

---

These expenses are included in "Selling, general and administrative expenses" and "Other expenses" in the

consolidated statements of profit or loss and other comprehensive income, and in "Intangible assets" in the

consolidated statements of financial position. Directly attributable costs associated with software development,

including cost of employee benefits and consultant fee are capitalized in accordance with IAS 38, *Intangible Assets*,

which were ¥261 million, ¥291 million and ¥299 millionin the year ended March 31, 2023, 2024 and 2025,

respectively.

**27. Equity**

**(1)Share capital**

*Authorized share capital*

Under Dutch law, the authorized share capital of a public limited liability company is the maximum capital that

Coincheck Parent may issue without amending its Articles of Association. At least one-fifth of the authorized

share capital must at all times be issued. Pursuant to the Articles of Association, as of the consummation of the

Reverse Recapitalization, Coincheck Parent's authorized share capital is €4,000,000, divided into 400,000,000

Ordinary Shares with a nominal value of €0.01 each.

*Issued share capital*

For each of the periods presented, the following table shows the number of Coincheck Parent shares

outstanding; this table has been recast for the effect of the Reverse Recapitalization:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** | **As of March 31,** | **As of March 31,** |
|  | **2024 (as recasted)** | **2024 (as recasted)** | **2025** | **2025** |
|  | **Number** | **Ordinary** | **Number** | **Ordinary** |
| ***(In millions)*** | **of shares** | **share capital** | **of shares** | **share capital** |
| Former Coincheck shareholders | 122587617 | ¥196 | 122587617 | ¥196 |
| Issuance of shares in Reverse <br>Recapitalization<br>|  |  | 7115459 | 15 |
| Issuance of shares in business acquisition of <br>Next Finance<br>| *—* | *—* | 1111450 | 2 |
| Total Ordinary Shares Issued and <br>Outstanding<br>| 122587617 | ¥196 | 130814526 | ¥213 |

---

*Non-Redemption Agreement*

**COINCHECK GROUP N.V. and its subsidiaries**

Coincheck Group B.V. and Thunder Bridge entered into the Non-Redemption Agreement with Ghisallo on

December 4, 2024 and amended and restated the Non-Redemption Agreement on March 10, 2025, pursuant to

which Ghisallo agreed not to redeem (or to validly rescind any redemption requests on) an aggregate of 973,000

Thunder Bridge Public Shares (the "Non-Redemption Shares") in connection with the Special Meeting. In

exchange for the foregoing commitments not to redeem the Non-Redemption Shares, Thunder Bridge paid

Ghisallo ¥1,593 million. If Ghisallo sells any Non-Redemption Shares by March 10, 2026 (the "Maturity

Date"), Ghisallo agrees to pay to Coincheck Parent an amount calculated based on the number of such Non-

Redemption Shares sold. On the Maturity Date, Ghisallo agreed to transfer to Coincheck Parent, at no cost to

Coincheck Parent and free and clear of any liens or encumbrances, any Non-Redemption Shares still retained by

it. The Company considered this transaction to be an equity transaction in accordance with IAS 32, *Financial* 

*Instruments*: *Presentation*, whereas cash paid to Ghisallo was treated as an equity distribution and subsequent

cash receipts as equity contributions. As of March 31, 2025, the Company received ¥202 million from this

arrangement, which has been recorded to capital surplus in the consolidated statements of changes in equity.

There were 856,242 Non-Redemption Shares held by Ghisallo as of March 31, 2025.

**(2)Other components of equity—Foreign currency translation adjustments**

Foreign currency translation adjustments comprise all foreign currency differences arising from the translation

of the financial statements of Coincheck Parent and CCG AS into Japanese yen.

**(3)Dividends**

There are no dividends declared and paid in the years ended March 31, 2023, 2024 and 2025.

**28. Earnings per share**

The bases for calculating basic earnings (losses) per share and diluted earnings (losses) per share for the year ended

March 31, 2023, 2024 and 2025, are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| ***(In millions, except per share data)*** | **2023** | **2024** | **2025** |
| Net profits (losses) for the period attributable to <br>owners of the Company<br>| ¥(559) | ¥1,967 | ¥(14350) |
| Basic and diluted net earnings (losses) per share | ¥(4.56) | ¥16.05 | ¥(114.98) |
| Weighted-average number of shares, basic and <br>diluted<br>| 122587617 | 122587617 | 124803262 |

---

Weighted-average number of shares has been recast to reflect the Reverse Recapitalization. Basic net earnings

(losses) per share are computed by dividing net profit (loss) by the weighted-average number of shares of Ordinary

Shares outstanding during each period. It excludes the dilutive effects of any potentially issuable common shares

(e.g., shares underlying warrants). Diluted net profit (loss) per share is calculated by including any potentially

dilutive share issuances in the denominator. For the year ended March 31, 2023 and2024, the diluted earnings per

share is equal to basic earnings per share, as there were no potentially dilutive securities. For the year ended

March 31, 2025, all potentially dilutive securities were not included in the calculation of diluted losses per share as

their effect would be anti-dilutive.

**29. Related parties**

**(1)Related party transactions**

Below are the related-party balances as of March 31, 2024, and 2025:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(In millions)*** | | | | |
| **Type of related** <br>**party**<br>| <br>**Name of related** <br>**party**<br>| <br>**Detail of** <br>**transaction**<br>| <br>**Outstanding balance** <br>**as of March 31, 2024**<br>| <br>**Outstanding balance** <br>**as of March 31, 2025**<br>|
| Parent company | Monex Group, <br>Inc.<br>| Business <br>management service <br>fee<sup>(2)</sup><br>| ¥125 | ¥— |
| Subsidiaries of <br>parent company<br>| Monex Finance <br>Corporation<br>| Borrowing<sup>(3) (4)</sup> |  | 751 |
| Associates of parent <br>company | Monex, Inc. | Provision of sales <br>service<br>| 4 | 5 |
| Associates of parent <br>company | Monex, Inc. | Derivative <br>transaction<sup>(5)</sup><br>| 2 |  |

---

Below is the related-party transaction impact on the consolidated statements of profit or loss and other

comprehensive income for the year ended March 31, 2023, 2024 and 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ***(In millions)*** | ***(In millions)*** | | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
| **Type of related** <br>**party**<br>| **Name of related** <br>**party**<br>| <br>**Detail of transaction** | **2023** | **2024** | **2025** |
| Key management | The managing <br>directors of the <br>Company<br>| Transaction revenue<sup>(1)</sup> | ¥0 | ¥0 | ¥1 |
| Parent company | Monex Group, Inc. | Business management <br>service fee<sup>(2)</sup><br>| 363 | 458 | 397 |
| Subsidiaries of <br>parent company | Monex Crypto <br>Bank, Inc.<br>| Transaction revenue<sup>(1)</sup> | 5 | 0 | 0 |
| Subsidiaries of <br>parent company | Monex Finance <br>Corporation<br>| Interest expense | 0 |  | 21 |
| Associates of <br>parent company | Monex, Inc. | Transaction revenue<sup>(1)</sup> | 0 | 847 | 6396 |
| Associates of <br>parent company | Monex, Inc. | Cost of sales<sup>(1)</sup> | 0 | 844 | 6377 |
| Associates of <br>parent company | Monex, Inc. | Provision of sales <br>service<br>| 23 | 26 | 42 |
| Associates of <br>parent company | Monex, Inc. | Derivative gains<sup>(5)</sup> |  | 55 | 9 |

---

____________

Notes:

<sup>(</sup><sup>1</sup><sup>)</sup> Certain of Coincheck's managing directors and related parties purchase or sell crypto assets on Coincheck's

Marketplace platform. The transactions for the year ended March 31, 2024 and 2025, were made on terms

equivalent to those that prevail in arm's-length transactions. The Company recognized the corresponding

transaction revenue amounting to ¥5 million, ¥848 million and ¥6,397 million for the years ended March 31,

2023, 2024 and 2025, respectively.

**COINCHECK GROUP N.V. and its subsidiaries**

<sup>(2)</sup> Business management service fee represents the considerations for guidance and support on general

management and other consulting services provided by Monex, the direct parent company of Coincheck prior to

the Business Combination. The services include support on registration of cryptocurrency exchange business

and negotiation with the Financial Services Agency necessary for continuing registration, assistance in cyber

security risk management, and maintaining relationships with relevant financial institutions. According to the

business management service fee agreement, the consideration paid was 5% of Coincheck's total revenue net of

cost of sales (variable fees). This agreement was terminated in November 2024.

<sup>(3)</sup> Coincheck entered into a line of credit with Monex Finance Corporation, with aggregate commitments as of

March 31, 2024 and March 31, 2025 of ¥6,000 million and ¥6,000 million, respectively. No amounts were

outstanding under this arrangement as of March 31, 2024 or March 31, 2025, after drawing down and

subsequently repaying ¥6,000 million in June of 2024.

<sup>(4)</sup> Coincheck Parent entered into its own commitment line contract of ¥2,400 million as a debtor with Monex

Finance Corporation as of December 11, 2024, which was extended, amended and restated as of March 31,

2025, for the purpose of operating capital. As of March 31, 2025, the balance outstanding under this was ¥751

million, with an interest rate of 5.69%.

<sup>(5)</sup> The derivative transaction is a forward exchange transaction between the USD and the Japanese yen.

Realized gain of ¥55 million and ¥9 million recognized in the consolidated statement of profit or loss and other

comprehensive income is included in the "Transaction amount" of the derivative transaction for the years ended

March 31, 2024 and 2025, respectively. ¥2 million shown in "Outstanding balance" is the fair value gain of the

foreign exchange forward transaction that was not closed as of March 31, 2024 with the principal amount of ¥43

million. As of March 31, 2025, this has been closed.

**(2)Compensation for the Company's key management personnel**

Key management personnel are defined as the managing directors and officers, and audit committee members

and audit and supervisory board members of the Company.

The compensations for key management personnel are as follows:

---

| | | | |
|:---|:---|:---|:---|
|  | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** | **For the fiscal year ended March 31,** |
|  | **2023** | **2024** | **2025** |
| Short-term employee benefits | ¥83 | ¥66 | ¥291 |

---

**(3)Subsidiary**

The number of consolidated subsidiaries increased tosix in the year ended March 31, 2025, primarily due to the

closing of the Business Combination and the acquisition of Next Finance, compared with no subsidiaries as of

March 31, 2024. The following is a list of the Company's consolidated subsidiaries: 6 subsidiaries as of

March 31, 2025.

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | |
|:---|:---|:---|:---|
| **Name of subsidiary**  | **Place of** <br>**incorporation a**<br>**nd operation** <br>| **Contents of business**  | **Percentage** <br>**of voting rights** <br>**held by the** <br>**Company** <br>|
| Coincheck, Inc. | Japan | Provides end-to-end crypto asset <br>exchange services and operates a <br>multi-cryptocurrency marketplaces.<br>| 100% |
| CCG Administrative Services, <br>Inc. <br>| US | Provides certain administrative <br>services for Coincheck Group N.V.<br>| 100% |
| M1 Co G.K. | Japan | Serves as a special purpose entity <br>for de-SPAC process.<br>| 100% |
| Next Finance Tech Group | Japan | Provides staking service. | 100% |
| Next Finance Tech Digital <br>Assets Co., Ltd.<br>| Japan | Borrows cryptocurrencies. | 100% |
| Next Finance Tech International <br>Co., Ltd.<br>| Cayman Islands | Manages Next Finance's insurance. | 100% |

---

**30. Commitments and contingencies**

**(1)Customer deposited crypto assets**

The Company has an obligation to safeguard all crypto assets held on behalf of customersfrom loss or theft. As

such, the Company may be liable to its customers for losses arising from the Company's failure to safeguard

these assets. The Company hasnot incurred any losses from such obligations and, therefore, has notaccrued

any related liabilities as of March 31, 2024and 2025. This determination is based on the following factors: (i)

the Company has no known or historical experience of claims to use as a basis of measurement after the January

2018 cybersecurity incident (as described in "(4) Contingencies"). While the Company compensated customers

for that event, the related legal claims have been substantially resolved, and there is no recurring claims

experience. (ii) the Company accounts for and continually verifies the amount of crypto assets within its

control, and (iii) the Company has established security around private keys to minimize the risk of theft or loss.

**(2)Purchase commitments**

The contractual commitment amount related to the lease contract was ¥65 million and ¥nil millionas of

March 31, 2024 and 2025, respectively.

**(3)Availability under committed credit lines**

The Company had committed credit lines from Monex Finance Corporation and JSF Trust and Banking Co.,

Ltd. for the purpose of stable operating capital in the year ended March 31, 2024 and 2025. The undrawn

commitments on these credit lines were as follows:

---

| | | |
|:---|:---|:---|
|  | **As of March 31,** | **As of March 31,** |
| ***(In millions)*** | **2024** | **2025** |
| Total amount of commitment line borrowing | ¥6,200 | ¥8,900 |
| Balance of executed borrowed commitment line |  | 751 |
| Balance of unexecuted commitment line | ¥6,200 | ¥8,149 |

---

**(4)Contingencies**

In general, litigation has uncertainties and, therefore, it is difficult to make a reliable estimate on the financial

impact of potential outflows embodying economic benefits. Provisions are not recognized if they are not

**COINCHECK GROUP N.V. and its subsidiaries**

probable to generate potential outflows embodying economic benefits or if the financial impact cannot be

estimated reliably. The possibility of any outflows in settlements regarding the lawsuits in dispute with the

Company is remote.

In January 2018, prior to Monex acquiring Coincheck, Coincheck's NEM hot wallet was hacked and it lost

526.3 million NEM, or ¥46.6 billion, of customer assets. Although Coincheck compensated customers who

were adversely affected by this cybersecurity incident, it was subject to lawsuits relating to the calculation of the

compensation provided. All but one of these lawsuits had been resolved by judgment or alternative dispute

resolution as of March 31, 2025, and the remaining one was settled in June 2025. Since 2018 the Company has

invested in strengthening its cybersecurity and has become subject to operating procedures, including

regulations for the custody of customer crypto assets, implemented by the JVCEA.

**31. Supplemental cash flow information**

**(1)Reconciliation of liabilities arising from financing activities**

The changes in liabilities to cash flows arising from financing activities are as follows:

**COINCHECK GROUP N.V. and its subsidiaries**

---

| | | | | |
|:---|:---|:---|:---|:---|
| ***(In millions)*** | **Loans** | **Promissory** <br>**note- related** <br>**party**<br>| **Lease** <br>**liabilities**<br>| **Total** |
| **As of March 31, 2022** | ¥200 |  | ¥239 | ¥439 |
| Proceeds from short-term loans | 1800 |  |  | 1800 |
| Repayments of short-term loans | (2000) |  |  | (2000) |
| Repayments of long-term loans | 0 |  |  |  |
| Repayments of lease obligations |  |  | (255) | (255) |
| Proceeds from loans from related party | 3000 |  |  | 3000 |
| Repayments of loans from related party | (3000) |  |  | (3000) |
| **Total changes from financing cash flows** | (200) |  | (255) | (455) |
| Modification of lease term |  |  | 253 | 253 |
| New lease contracts |  |  | 113 | 113 |
| Interest expenses | 1 |  | 2 | 3 |
| Interest expenses paid | (1) |  | (2) | (3) |
| **Total liability-related other changes** |  |  | 366 | 366 |
| **As of March 31, 2023** |  |  | 350 | 350 |
| Proceeds from short-term loans | 1200 |  |  | 1200 |
| Repayments of short-term loans | (1200) |  |  | (1200) |
| Repayments of lease obligations |  |  | (327) | (327) |
| **Total changes from financing cash flows** |  |  | (327) | (327) |
| Modification of lease term |  |  | (81) | (81) |
| New lease contracts |  |  | 1719 | 1719 |
| Interest expenses | 0 |  | 5 | 5 |
| Interest expenses paid | (0) |  | (5) | (5) |
| **Total liability-related other changes** |  |  | 1638 | 1638 |
| **As of March 31, 2024** |  |  | 1661 | 1661 |
| Proceeds from short-term loans | 1800 |  |  | 1800 |
| Repayments of short-term loans | (1800) |  |  | (1800) |
| Repayments of lease obligations |  |  | (463) | (463) |
| Proceeds from loans from related party | 8508 |  |  | 8508 |
| Repayments of loans from related party | (7759) | (128) |  | (7887) |
| **Total changes from financing cash flows** | 749 | (128) | (463) | 158 |
| Modification of lease term |  |  | 79 | 79 |
| Increase by business combination | 2 | 128 |  | 130 |
| Interest expense | 21 |  | 10 | 31 |
| Interest paid | (21) |  | (10) | (31) |
| **Total liability-related other changes** | 2 | 128 | 79 | 209 |
| **As of March 31, 2025** | ¥751 |  | ¥1,277 | ¥2,028 |

---

**(2)Major noncash transactions**

The noncash investing and financial transactions mainly include right-of-use assets obtained in exchange for

lease liabilities pertaining to modification of lease term and a new lease contract amounting to ¥366 million,

¥1,638 million and ¥79 million for the years March 31, 2023, March 31, 2024 and March 31, 2025,

respectively, as well as the warrant and other liabilities assumed in the Business Combination amounting to

¥2,347 million for the year ended March 31, 2025.

**COINCHECK GROUP N.V. and its subsidiaries**

**32. Events after the reporting date**

On April 1, 2025, May 7, 2025, June 1, 2025, and June 16, 2025, the Company granted Restricted Share Units (the

"RSUs") pursuant to the Coincheck Group 2024 Omnibus Incentive Plan. These RSUs are subject to various vesting

conditions with vesting dates up to, and including, March 31, 2028. If all of these RSUs were to vest, it would result

in the issuance of 4,119,850 Ordinary Shares.