Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell Litecoin (LTC) in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare Capital Markets Ltd (CCML)’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare Capital Markets Ltd (CCML) has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

Litecoin is a cryptocurrency that was founded in 2011, two years after Bitcoin, by a former Google engineer named Charlie Lee. Litecoin has always been viewed as a reaction to Bitcoin. In fact, when Lee announced the debut of Litecoin, he called it the “lite version of Bitcoin.” However, Litecoin has some inherent advantages when compared to bitcoin. It was founded with the goal of prioritizing transaction speed. Today, Litecoin is also widely utilized for its low transaction fees and established network reliability, making it a popular choice for payments and transfers.

As with all assets, investing in Litecoin is not without some general risks. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to Litecoin below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in Litecoin.

The Litecoin network includes an optional privacy feature known as Mimblewimble Extension Blocks (MWEB). MWEB allows users to transact on the network without exposing transaction amounts or address balances on the public blockchain. While this feature enhances user privacy, it may conflict with anti-money laundering (AML) laws in certain jurisdictions. Exchanges may refuse to support MWEB transactions or may be required to delist Litecoin entirely to comply with local regulations. For example, several centralized exchanges (CEXs) in South Korea delisted Litecoin following the activation of MWEB. Investors should be aware that the existence of privacy-enhancing features could lead to future regulatory restrictions or delistings, depending on how governments view such technologies.