Source: Google Finance Coinbase has since confirmed the report from The New York Times, which stated the SEC has been investigating whether Coinbase misstated its user numbers in past disclosures, an inquiry that began during the Biden administration and has continued under the Trump administration.“This is a hold-over investigation from the prior administration about a metric we stopped reporting two and a half years ago, which was fully disclosed to the public,” confirmed Coinbase chief legal officer Paul Grewal to Cointelegraph. “We also disclosed – and continue to disclose – the more relevant metric of ‘monthly transacting users’ – the number of people who use our platform in a given month,” he said before adding: “While we strongly believe this investigation should not continue, we remain committed to working with the SEC to bring this matter to a close.” The regulator took specific umbrage at Coinbase’s claim of “100+ million verified users” that appeared in its marketing and IPO documentation in 2021.
Coinbase stock dipped after news broke of a cyberattack that exposed customer data and an ongoing Securities and Exchange Commission investigation over misstated user numbers in 2021.
Source: SECThe probe has continued despite the SEC dropping its 2023 enforcement lawsuit against Coinbase under the Trump administration. Coinbase has hired law firm Davis Polk & Wardwell to assist with its response to the SEC.
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Author / Journalist: Cointelegraph by Martin Young
The story "Coinbase drops 7% on customer breach, SEC probe into user numbers" has 380 words across 12 sentences, which will take approximately 2 - 4 minutes for the average person to read.
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