The U.S. Securities and Exchange Commission is investigating whether Coinbase Global Inc. overstated the size of its customer base, according to a New York Times report. Regulators are examining the cryptocurrency exchange’s claim of having "100 million-plus verified users," a figure prominently displayed in its 2021 initial public offering prospectus. Coinbase stopped disclosing that metric in 2023. The inquiry, launched under the Biden administration, has continued under President Donald Trump even after the SEC dropped an earlier lawsuit accusing Coinbase of illegally marketing digital-asset products. Chief Legal Officer Paul Grewal called the probe a "hold-over from the prior administration," saying the disputed figure counted anyone who verified an email address or phone number. He added that the company is cooperating with investigators and "strongly believes" the matter should be closed. Coinbase shares fell more than 8% in afternoon trading on Thursday following the report.
🚨BREAKING: According to the NY Times, the SEC has been investigating Coinbase about misstated user numbers. The investigation began under Gensler and apparently continues now. https://t.co/mxSiEaZGYX
SEC investigating whether Coinbase, $COIN, mistated its user numbers, per NYT
$COIN | Coinbase Chief Legal Officer: Reported Sec Investigation Is A Hold-Over From Prior Administration About A Metric We Stopped Reporting 2.5 Years Ago - Verified Users Metric Includes Anyone Who Verified Their Email Address Or Phone Number With Us