Kushim receives report on cryptocurrency valuation overstatement

Kushim Group (TSE:2345) announced it has received a report from its internal investigation committee regarding the valuation of certain cryptocurrency assets. The committee was formed following external indications that the company's accounting treatment of these assets in Q2 2024 required retrospective correction. The report concludes that the impairments booked in Q2 2024 should have been booked earlier in the prior fiscal year ending October 2023, and should have resulted in a reduction to zero or a nominal book value as active markets did not exist for these assets. This conclusion was based on limited third party transactions and reliance on pricing data from the Zaif exchange, where liquidity was low, and the company was only able to purchase the digital asset FSCC at a 45% discount to the Zaif price, calling into question its reliability. The investigation, led by external legal and accounting experts, focused on the timing of these impairments. The company had previously announced this potential correction on March 28, 2025.