Coinbase Under SEC Probe, Stock Slides Amidst Legal Uncertainty

Coinbase is facing scrutiny from the Securities and Exchange Commission (SEC) as an investigation into potential misrepresentations of user counts continues. The probe, which began under the Biden administration, reportedly focuses on whether Coinbase’s claim of over 100 million verified users was inaccurate. 100 million users were included in Coinbase’s initial public offering documents and other public filings in 2021, but later disclaimers stated that the metric could be inflated due to multiple account usage per individual.