Completing the Recovery: A Summary for Coinmotion Users

What This Communication Is About

This notice explains what happened to your assets, what has been recovered, and what you are receiving.

We know many of you have waited a long time for this moment, and we are sorry for what you have been through. This communication is intended to give you a clear and transparent summary.

What Happened in 2022

The products you subscribed to via Coinmotion were part of an interest service operated by Tesseract Group Oy (“Tesseract”). These products offered you a way to earn yield on your crypto holdings — for example, BTC, ETH, or stablecoins.

The yield was generated through centralised lending. Assets from users were lent to institutional borrowers — typically crypto-native trading firms, funds, or exchanges — in return for yield. This is similar in principle to how banks generate interest on deposits by lending to borrowers, and the associated credit risk was disclosed in the terms and conditions of the service.

Between May and November 2022, the crypto lending market went through an industry-wide collapse. A number of the sector’s most prominent lenders, hedge funds, and exchanges — names that became synonymous with the crisis, such as Three Arrows Capital, Celsius, FTX, and Alameda Research — entered bankruptcy or restructuring in a cascade of defaults that caused billions of dollars of losses across the crypto lending industry globally.

Tesseract’s lending programme and the interest service were not insulated from that environment. Like other lenders in the sector, our lending pool — which generated the yield paid to the end-users — was impacted by the wave of industry defaults that unfolded through 2022. Tesseract invested its own corporate funds into the same lending pool alongside client funds, meaning Tesseract absorbed losses alongside the end-users who had entrusted us with their assets.

We want to be clear: we deeply regret this happened. While Tesseract took steps to manage credit risk, the scale and speed of these events were unprecedented and constituted a systemic failure across the industry. Since then, a core priority has been recovering as much value as possible and returning it to you transparently.

What We Have Done: Recovering Your Assets

Since the defaults, Tesseract has worked to recover assets from the bankruptcy estates and restructuring processes of the failed loan counterparties. This involved filing claims, engaging with liquidators, participating in legal proceedings, and negotiating settlements across multiple jurisdictions.

These processes are inherently complex, costly and time-consuming. Each defaulted counterparty had a different legal framework, timeline, and recovery structure, often involving bankruptcy courts, liquidators, and legal representatives in several countries.

Through these efforts, we have recovered a significant portion of the original losses.

What You Are Receiving

Your recovered assets are being returned to you by Coinmotion in the cryptocurrency you originally subscribed to the interest service with.

Because different bankruptcy estates and counterparties had different recovery outcomes and different users held different asset mixes, the exact recovery percentage varies. You will receive a personal statement from Coinmotion setting out:

• Your original position at the time of the defaults
• The recovery amount being returned to you
• Any amounts previously paid to you

Why Has This Taken So Long?

We understand this process may have seemed frustratingly slow from your perspective, and we want to be transparent about why.

Recovering assets from bankrupt or collapsed companies is a lengthy process governed by legal proceedings in multiple jurisdictions. Each counterparty’s estate operated on its own timeline — some moved faster than others, and several required Tesseract to actively participate in legal proceedings to protect the claims.

Distribution could not take place until the relevant bankruptcy and restructuring processes had progressed to the point where recovered assets were legally available to distribute, and until remaining legal risks had been resolved. Distributing earlier would have exposed you to the risk that assets returned to you could subsequently have been recalled.

We recognise that the wait has been difficult, and we appreciate your patience.

Your Recovery Amount

Through the recovery processes described above, combined with the assets unaffected by the credit losses that were returned to Coinmotion end-clients in July 2023, a meaningful proportion of the assets originally invested in the interest service has been recovered and is being returned to you.

Because different counterparties had different recovery outcomes, and because users held different asset mixes, individual recoveries vary. Your specific position, including the recovery amount being returned to you and any amounts previously paid, is set out in the personal statement you will receive from Coinmotion.

What Happens Now

• Today (9 June 2026): Your recovered crypto assets are being distributed to your Coinmotion account.
• Personal statement: You will receive an individual statement from Coinmotion showing your specific recovery calculation.
• Questions: If you have questions, please contact Coinmotion’s support team through the Coinmotion platform.

This distribution represents the conclusion of the recovery and return process for the assets affected by the 2022 credit events.

Summary

• In 2022, several major borrowers (loan counterparties) defaulted — this caused losses in the interest service you were part of.
• Since then, Tesseract has worked to recover as much value as possible through complex legal and bankruptcy processes across multiple jurisdictions.
• A meaningful proportion of the assets originally invested in the interest service has been recovered and is being returned to you today through Coinmotion.
• You will receive a personal statement setting out your individual recovery calculation.

We are grateful for your patience throughout this process, and we are glad to be able to return these assets to you.