SEC Investigates Coinbase for Potential Misstatement of User Numbers
The SEC is investigating Coinbase over potential misstatements regarding its user numbers in previous securities filings and marketing. Key points include:
- The investigation started under former SEC Chair Gary Gensler but continues with current leadership.
- Central to the inquiry is Coinbase's claim of over 100 million "verified users," a metric it ceased using in 2021.
- Coinbase’s chief legal officer stated the investigation pertains to outdated metrics and emphasized that the verified users figure may not accurately reflect unique customers.
- Coinbase continues to report its "monthly transacting users" as a more relevant metric.
- COIN shares fell 6.6% following this news, adding to pressures from a recent data breach disclosure.
The SEC has not commented on the investigation.