In June 2025, Inlock obtained partial compensation in the legal proceedings related to the November 2022 incident, which created the opportunity to make a settlement offer to its clients as set out in its Recovery and Restructuring Plan. A significant proportion of the still active customer base took advantage of the settlement offer, with more than 75% of the outstanding asset value being settled to customers who accepted the offer.
We will continue to pay out assets under the terms of the Scheduled Release programme to customers who do not accept the final settlement offer. As a result of the Final Settlement Program, the value of assets recorded at the time of the damage has decreased to $730,000. The assets with coverage available to and managed by the platform represent nearly half of the amount recorded, a coverage level that is expected to increase further in the coming years if the legal process develops favorably. Based on the notification to the affected clients, the platform will continue to operate the Scheduled Release programme without disruption until such time as it is able to release assets for which it has collateral. For the affected customers, the coverage level will be increased by the amount allocated from the Inlock Final Settlement and Loss Mitigation Funds set out in the Final Settlement Offer.
In parallel with the Scheduled Release Programme, the Service Provider will also start the process of dismantling the Inlock platform, the steps of which, and the parent steps, will be communicated to the affected customers on an ongoing basis.
In the case of ILK tokens not affected by the Final Settlement Offer or Scheduled Release Program, the Service Provider will continue to adhere to the commitments of the “Communication on changes to the ILK token ecosystem” issued on 19 January 2023, in the framework of which it will develop the future provision of ILK token functions. This will definitely require action by ILK token holders, so stakeholders should closely follow any announcements on this topic. Further details are expected to be published in a separate Communication at the end of the third quarter of 2025.
We would like to take this opportunity to thank the customers of Final Settlement for their active participation in the closure of the programme. Thanks to the programme, the settlement payout on the present value of the assets could be up to 100%, depending on how the price of the assets has evolved since the loss occurred. If the legal proceedings relating to the claim continue to develop favourably, we will be able to improve this rate further for clients who accept the settlement offer.