365Crypto
A Double Blow for Coinbase
Coinbase is under fire. The SEC is digging into the exchange over claims it gave false user numbers. This comes just hours after a security breach rocked the platform.
SEC Ramps Up Investigation
According to the New York Times, the SEC is investigating whether Coinbase misled investors back in 2021. The company once claimed it had 100 million verified users. Now, that claim has the SEC raising its eyebrows.
Coinbase reportedly stopped using that number in its talks with regulators. But the SEC didn’t forget. It’s pushing harder to get answers. Coinbase has hired top law firm Davis Polk & Wardwell to help fight back.
Paul Grewal, Coinbase’s top legal officer, called the probe “a leftover from the Gensler era.” He says the user data hasn’t been reported in over two years. Still, he believes the issue can be sorted out.
COIN Stock Takes a Hit
The news hit Coinbase’s stock hard. COIN dropped over 6%, now sitting at $246.36. That’s a tough fall—especially after the company had just joined the S&P 500.
The drop also follows a reported hack. Some users claim Coinbase promised full refunds, but confidence is shaky.
Bad Timing for Good News
Just last week, Coinbase was celebrating. It bought crypto exchange Deribit for $2.3 billion and launched 24/7 Bitcoin and Ethereum futures trading.
The firm also scored wins in several U.S. states over its crypto staking service. But this SEC storm could rain on its progress.
SEC = U.S. Securities and Exchange Commission, a government agency that enforces laws against market manipulation and fraud.
Verified users = Accounts that passed identity checks to use a platform legally and securely.
