Coincheck Group N.V.

Coincheck, Inc. operates a cryptocurrency exchange business. The company was initially launched in 2012 by ResuPress K.K., which later changed its name to Coincheck, Inc. In January 2018, Coincheck experienced a cybersecurity incident involving its NEM hot wallet, resulting in the loss of 526.3 million NEM, equivalent to 46.6 billion, of customer funds. Coincheck compensated affected customers, and related lawsuits have since been resolved. Following the incident, the Japan Financial Services Agency (JFSA) required Coincheck to suspend operations. In April 2018, Monex acquired Coincheck for 3.6 billion. Post-acquisition, Monex collaborated with the JFSA to enhance security and corporate governance. This included engaging a financial cybersecurity consulting firm for a comprehensive review of Coincheck's processes and system architecture. Monex appointed four new directors, three corporate auditors, and seven executive officers to strengthen board oversight and audit independence. Improvements were made to segregated customer asset management through continuous monitoring and monthly compliance reporting, with external law firms and new full-time audit and supervisory board members participating in compliance committee meetings. Coincheck also enhanced its risk management policies, with a risk committee monitoring the risk management system monthly. This includes daily monitoring of cryptocurrency positions, credit risk by verifying positions against counterparty limits, and liquidity risk by confirming crypto asset supply and daily transactions.